Trump's tariffs revealed: How could they cost the UK?

If the president-elect imposes one blanket 20% tariff The UK could face a £22bn hit to its exports on all imports to the US, experts say.

Latest analysis from economists at the Center for Inclusive Trade Policy (CITP) at the University of Sussex suggests tariffs could lead to global exports from the UK falling by at least 2.6%.

Mr. Trump promised on several occasions during the campaign a 20 percent tax on all imports, as well as a hefty 60 percent tax on Chinese imports. The subsequent decline in trade would be equivalent to a 0.8% fall in Britain’s economic output.

Researcher Nicolo Tamberi wrote: a blog post Despite the aggressive nature of the commitments, “there is certainly a possibility that these tariffs will be implemented”.

Read on for more details on how this could affect the UK economy.

Which sectors will be most affected by tariffs?

Although the 20% tax affects all industries that export to the United States, those most affected are likely to be fishing, oil, and mining. Exports from these industries could fall by a fifth. Additionally, the pharmaceutical and electricity sectors will also be affected.

Moreover, it will not be only exporters who will feel the change. Operations companies, such as transportation providers, will also face knock-on effects, as well as services such as insurance and finance.

Could any industry benefit?

It’s not all bad news. Some sectors, such as textiles and apparel, could benefit from even higher taxes on Chinese exporters.

How did Britain react to Trump’s plans?

Speaking on the BBC’s Newscast podcast, Foreign Secretary David Lammy said: “We will try to convey to the US – and I believe they will understand that – that harming your closest allies cannot happen in the medium or long term. “Whatever the pursuit of public policy regarding some of the problems created by China is in the long term interests.”

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