Washington’s tariffs on the UK is “deeply concerning” and threatens the economic growth for Britain.
The US President has imposed a 25% tariff on British stell and aluminium entering the US and the Confederation of British Industry (CBI) has warned against “protectionism.”
John Foster, chief policy officer at the CBI, said, “At a moment in the economic cycle when boosting business confidence and unlocking firms’ capacity for investment holds the key to kick-starting economic growth, the escalating tariff situation in the US remains deeply concerning.
“Rather than heeding the siren calls of protectionism, major global players should be leaning into the significant economic benefits that free, fair and open trade can bring.”
William Bain, BCC Head of Trade Policy, said, “This is a difficult day for trans-Atlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty.
“Products made with UK steel and aluminium play an important part in many supply chains in the US. Both sides will now be facing up to negotiations on how the burden of these new tariffs will affect businesses in both countries.
“Despite this action, UK firms will want to keep trading with their customers and clients in the US and vice versa. Our commercial, investment and trading relationships remain strong.
“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth. More tariffs are also on the agenda for the start of next month which will add fresh uncertainty into the mix.
“BCC research shows that 63% of our manufacturing exporters were concerned about the impact of tariffs before their introduction.
“But today’s setback does not mean we have reached the end of the road in terms of negotiations. Tariffs can be lifted at any time.
“Businesses will be looking to the UK government to continue dialogue, with the US, to resolve this situation and restore certainty for firms, which has been badly lacking over recent weeks.
“Against this background, a series of tit-for-tat tariffs could easily spiral into an all-out trade war and would do the UK little benefit.
“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort.
“If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides.”
