As many as a third of UK firms could be exposed to the threat of new US tariffs and are already taking action, according to the first major business survey since Saturday’s announcement by President Trump.
The British Chambers of Commerce Insights Unit carried out a snap poll of nearly 350 businesses and 12% are already planning to reduce their transatlantic dealings.
Based on the current trading figures with the United States, if the tariffs come into place, UK businesses will face a £6bn hit at the end of January, rising to £15bn in June, says the BCC.
William Bain, the lobby group’s head of trade policy, said: “The threat of a new tariff bombshell from the United States is bad news for UK businesses, consumers and the wider economy.
“Our data shows some firms are already taking action following Saturday’s statement from the US Administration.
“If the tariffs are implemented the impact on British businesses is clear. It’ll mean lost orders, higher costs and lower margins for firms.
“We welcome the Government’s clear but calm response. We were pleased to hear the Prime Minister focus on the SME impact, during his press conference on Monday.”
Daily Business reported on Sunday how the Scottish food and drink industry would be among those most affected by new tariffs, and how the president’s action – to support his Greenland ambitions – would likely scupper any hopes First Minister John Swinney had of a cut in the tariff on Scotch whisky.
Today Mr Trump was showing no sign of letting up in his demand for ownership of Greenland which prompted him to announce a 10% rise in tariffs on countries supporting the country.
“I think that we will work something out,” he said during a lengthy White House press conference, “but Nato is going to be very happy.
“We need it [Greenland] for security purposes, we need it for national security and even world security. It is very important.”
Analysts believe Mr Trump will step back from invading Greenland and reach either a military or economic patnership deal, or probably both.
#firms #exposed #tariffs #Daily #Business