02.04.25

Stephen Phipson, CEO of Make UK said:

“The US President’s announcement of 10% tariffs on UK goods exported to the United States and 25% tariffs on British made autos, steel and aluminium is devastating for UK manufacturing. Not only will volumes of direct exports to the US decline but it will destroy decades of integrated supply chains connecting the UK with US through other trading partners such as the EU, Canada and Mexico who are also impacted by US tariffs.

Even without a formal preferential trade agreement, the UK and US have for decades enjoyed a balanced trade relationship, with mutual collaboration and investment that has helped job creation, growth and shared endeavour on both sides of the Atlantic. It is highly disappointing that the strength of this relationship, at a time of where both countries need to boost shared growth, employment opportunities and innovation options, does not extend to enhancing free trade rather the reverse, the consequences of which will immediately harm the US consumer and economy too.

Despite their significant efforts over recent weeks and the calm way they have avoided escalating tension, the UK Government must double their efforts and work urgently to negotiate a new mutually beneficial economic agreement with the US to reverse this highly damaging development.  This isn’t the time for a trade war, we need to find a way to mitigate against these crippling tariffs at speed. UK manufacturing is already under significant pressure coping with huge rises in costs, uncompetitive energy prices and a skills crisis, adding this additional challenge will be very damaging for the sector and result in the loss of jobs.

“Government urgently needs to convene a Tariffs Taskforce bringing together a full spectrum of British industry along with all the relevant government departments to help companies navigate their way through the tariff complexities and uncertainty. This approach proved its value during the Brexit negotiations and would add value and increase business confidence if implemented now.                                        

Notes to editors:

Tariffs will have particular impact for firms in Northern Ireland who will be impacted by any action taken by the EU on tariffs against US imports, who will be responsible for paying the tariffs and then seeking reimbursement from the UK Government ”

At this critical moment in the wider confidence in global trade flows and supply chains and to support the UK economy, the UK must work at pace with other close economic partners to ensure that the damage to economic growth and the protection of jobs is limited. Seeking enhanced economic and trade partnerships with like-minded economies in the G6, the EU and with CPTPP nations, will demonstrate the UK’s ambition to support growth and jobs.