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If the UK issues retaliatory tariffs, consumers could see a rise in goods and we may have to scramble to find alternative petrol and diesel prices, which could be more expensive.
The US imports around 30% of the UK’s crude oil, petrol and natural gas, so price hikes are likely.
Behind Germany, the US is the UK’s biggest import of goods, importing £57.9 billion of goods in 2023, accounting for 10% of all goods imported.
In the same year, the UK imported £18.7 billion of fuels from the United States, comprising 23.5% of all imports of this commodity.
First the UK would have to enact retaliatory tariffs for there to be any impact- if it does so, the cost burden would be probably partially be absorbed by the company that has to pay the tariff and partially passed on to the end consumer in the case of manufactured goods, so a squeeze on profits for the company and less purchasing power for the consumer.
In the case of petroleum and diesel, it would encourage a scramble to find alternative suppliers of these commodities, which may be somewhat difficult to replace completely as the US is a significant supplier of crude oil, petrol and natural gas – around 30% – so some upward pressure on prices would be likely – once again, only if the UK chooses to impose retaliatory tariffs – which it might do at a much lower rate or not at all for something as essential as energy imports.
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