{"id":24667,"date":"2026-02-24T08:55:35","date_gmt":"2026-02-24T08:55:35","guid":{"rendered":"https:\/\/microvibenews.com\/?p=24667"},"modified":"2026-02-24T08:55:35","modified_gmt":"2026-02-24T08:55:35","slug":"relief-at-lower-us-tariff-but-uncertainty-remains-daily-business","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=24667","title":{"rendered":"Relief at lower US tariff, but uncertainty remains \u2013 Daily Business"},"content":{"rendered":"

<\/p>\n

\n
\"US\"US
Exports to the US are facing higher tariffs<\/em><\/figcaption><\/figure>\n

Donald Trump\u2019s decision to introduce a lower 10% tariff rather than the feared 15% will provide some relief to British exporters, but will not lift the uncertainty, says the British Chambers of Commerce.<\/p>\n

It had warned that the higher rate would add up to \u00a33 billion on British exports, putting more sales to the US at risk.<\/p>\n

However, a late change of plan means the new 10% US tariff arrangements under section 122 of the Trade Act 1974 came into effect at 5am for the next 150 days. <\/p>\n

These affect\u00a0goods leaving\u00a0UK\u00a0ports bound for the US, which are not covered by the UK\u2019s Economic Prosperity Deal.\u00a0\u00a0<\/p>\n

A rate of 10% will apply on top of the US\u2019\u00a0most favoured nation duties for individual products. The uplift to 15% as announced on Saturday has yet to be implemented by President Trump, but the risk of this\u00a0tariff\u00a0still remains\u00a0and could be introduced at any time.\u00a0 This would add a further\u00a05% hike in duties for applicable UK goods if\u00a0it is\u00a0applied.\u00a0\u00a0<\/p>\n

The\u00a0new 10%\u00a0tariffs expire on 24 July unless renewed by an Act of Congress.\u00a0\u00a0<\/p>\n

William Bain, head of trade policy at the BCC, said: \u201cWhile a\u00a0new 10% tariff rate,\u00a0instead of the threatened 15%,\u00a0will provide some relief\u00a0it\u00a0shows how difficult it is for businesses\u00a0to\u00a0plan ahead.\u00a0\u00a0<\/p>\n

\u201cIt is far from clear what will happen next, and whether a higher tariff rate is still on the way. Despite the immediate\u00a0reprieve, there is fresh\u00a0uncertainty for\u00a0UK firms\u00a0exporting goods to the US.\u00a0<\/p>\n

\u201cThis makes it\u00a0very difficult\u00a0for firms to understand\u00a0the\u00a0prices and margins\u00a0they\u00a0will be able to secure for their goods,\u00a0currently under production,\u00a0for export in several months\u2019 time.\u00a0Inevitably this will have an impact on their sales and hit the economy.\u201d\u00a0<\/p>\n

The BCC has put a six-point plan to Government to guard against risks to UK exporters of the new tariff system and to support firms should the uplift to 15% US tariffs be implemented soon.\u00a0\u00a0<\/p>\n

New research by the BCC\u2019s Insights Unit\u00a0found\u00a0that:\u00a0<\/p>\n

    \n
  • A quarter of exporters said\u00a0a\u00a0general\u00a0export\u00a0cost\u00a0increase of 10-15%\u00a0would put more than half of their\u00a0overseas\u00a0sales at risk.<\/li>\n<\/ul>\n
      \n
    • 80% of exporters currently feel exposed to geopolitical risks.\u00a0<\/li>\n<\/ul>\n
        \n
      • One in eight exporters were already exploring strategic shifts to reduce exposure to US tariff uncertainty.\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n

        The BCC has written to government\u00a0to set\u00a0out six steps it can\u00a0take to help ease the cost burden on firms. It believes that the nature of the legislation being used by the US President means an exemption for the UK from the new tariff rate is unlikely. But there are a range of other tactical options available.\u00a0<\/p>\n

        Mr Bain said:\u00a0 \u201cBritish businesses exporting to the US have been on a non-stop rollercoaster ride for\u00a0almost a\u00a0year and their patience is wearing thin.\u00a0<\/p>\n

        \u201cThe constant shifting sands on tariffs have\u00a0worn them down and it is no surprise that so many are now considering a change in emphasis to other markets.\u00a0<\/p>\n

        \u201cThat\u2019s\u00a0a sensible move, but the US\u00a0remains\u00a0our single biggest trading partner and to disengage it with entirely would be a mistake. Last year it accounted for \u00a360bn worth of UK sales.\u00a0<\/p>\n

        \u201cIt is\u00a0very difficult\u00a0to predict what the next twists and turns in this saga will be,\u00a0but\u00a0we\u00a0believe there are\u00a0several\u00a0steps the government could take to stabilise the situation.<\/p>\n

        \u201cGetting on the front foot is crucial, not only to ease the\u00a0immediate\u00a0pain but to show businesses that the government is pulling out all the stops to limit the damage being caused.\u201d\u00a0<\/p>\n

        The BCC\u2019s full six-point plan:\u00a0<\/p>\n

          \n
        1. Carry out co-ordinated diplomacy with key international partners to encourage the US Administration to lower the 15% tariffs as soon as possible. Meet with the US Administration and Congressional decision-makers alongside impacted UK businesses.\u00a0\u00a0<\/li>\n<\/ol>\n
            \n
          1. Implement the Economic Prosperity Deal and Technology Prosperity Deal in full.\u00a0<\/li>\n<\/ol>\n
              \n
            1. Raise the capacity of UK Export Finance from \u00a380bn to \u00a3100bn, to support exporters as they deal with increased cost pressures.\u00a0\u00a0<\/li>\n<\/ol>\n
                \n
              1. Increase facilities and loans from the British Business Bank to support firms facing unexpected increases in costs and strain on cashflow.\u00a0<\/li>\n<\/ol>\n
                  \n
                1. Review the UK Global Tariff (UKGT) to see what further support can be provided to UK manufacturers on import and\u00a0component\u00a0costs.\u00a0\u00a0<\/li>\n<\/ol>\n
                    \n
                  1. Boost\u00a0export support to allow firms to\u00a0explore other international\u00a0markets;\u00a0including\u00a0the\u00a0FCDO-BCC Diplomatic Advisory Hub and\u00a0BCC\u00a0Trade Accelerator programme.\u00a0<\/li>\n<\/ol>\n

                    \t <\/div>\n