The British Chamber of Commerce Briefs Members on Trump Tariffs

The British Chambers of Commerce (BCC) has briefed its members on the major international trade developments following the announcement of sweeping new tariffs by US President Donald Trump. The BCC held a strategic session to discuss the potential impact of these tariffs on UK businesses, supply chains, and future trading relationships (see attached slides at the end of this article).

From the 5th of April, a 10% global baseline tariff on all imports to the United States will come into effect. While key industries such as pharmaceuticals, semiconductors, energy, and metals like steel and aluminium are temporarily excluded, members were warned that further sector-specific tariffs may soon be introduced.

A second wave of reciprocal duties will apply from 9 April, targeting countries with higher trade surpluses with the US. These duties are not cumulative but do create a patchwork of tariff levels across global markets.

The BCC presentation also explored how the US calculated tariffs, primarily through a formula based on goods trade surpluses. Despite the UK's relatively low average duties of just 1.3%, it is still subject to the 10% tariff — the same as Brazil, whose average duties sit at 13.29%.

Key Concerns Raised

The Chamber highlighted a number of critical concerns for UK businesses:

• Disruption to supply chains in sectors already hit by steel and aluminium tariffs, including aerospace and aviation.

• The impact on exporters, especially those with strong exposure to US markets.

• The possibility of EU retaliatory measures, which may particularly affect Northern Ireland-based businesses.

• Risks of trade diversion, as countries like China seek alternative buyers, potentially flooding UK markets with cheaper imports.

• The need for the UK Government and Trade Remedies Authority to engage closely with businesses, ensuring UK industries are protected without escalating the situation.