UK says latest US tariffs mean 'no negative change' for British businesses
Impact and Analysis of New US Tariffs on UK Businesses
Overview of the US Tariff Decision
LONDON, July 24 (Reuters) - Britain on Friday said there was no direct negative change for UK businesses from the latest U.S. decision to impose tariffs on its trading partners, though analysts said some sectors might lose their relative advantage over the European Union.
The United States imposed new import tariffs on goods from 60 trading partners on Friday, alleging they had failed to curb imports made with forced labour, just as a temporary 10% global tariff expired.
Specifics for the UK: Tariff Rates and Sectoral Deals
Tariff Rate for the UK
For Britain, the new tariff rate was also 10%, and separately negotiated sectoral deals covering the likes of steel, pharmaceuticals and whisky remain in place.
Government Response
"Our agreement with the U.S. remains in place," a UK government spokesperson said.
"We take forced labour very seriously to ensure that, in global supply chains, UK businesses are not complicit. The U.S. has recognised the steps the UK is taking..."
Trade Developments: Scotch Whisky and Other Sectors
First Tariff-Free Shipment of Scotch Whisky
Britain separately announced that the first tariff-free shipment of Scotch whisky would depart for the U.S. by the end of the week, under a deal clinched during a visit by King Charles to Washington that came into force on Friday.
Relative Disadvantage Against EU Competitors
While Britain has had some success in negotiations with the U.S., some analysts said Friday's new tariffs might leave some British firms at a relative disadvantage against EU competitors.
Comparison with EU Tariff Situation
Tariff Structures: UK vs. EU
While the situation for British firms is the same as before, their 10% rate is in addition to any existing "most-favoured-nation" rates. Meanwhile, the EU is now subject to a 10% tariff that includes any MFN rates, having previously agreed a 15% rate, including MFN rates, last year. The EU also had some tariff exemptions reintroduced.
Industry Reactions and Future Outlook
Business as Usual for Most Firms
"For most firms exporting goods to the US, it will remain 'business as usual' today," said William Bain, Head of Trade Policy at the British Chambers of Commerce.
Concerns Over Competitive Advantage
"However, there will be concerns about the loss of the UK's competitive advantage over the EU and other countries which have secured a more favourable deal in other goods sectors."
Reporting and Editorial Credits
(Reporting by Alistair Smout and William James; Editing by Kate Holton and Kevin Liffey)
