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E-mail Xinhua, April 12, 2025
By Zhao Xiaona, Larry Neild
LONDON, April 11 (Xinhua) -- The imposition of high tariffs on British goods by the United States is placing significant and sustained pressure on businesses in the United Kingdom (UK), with trade policy experts warning of escalating costs, declining export opportunities, and prolonged market instability.
William Bain, head of trade policy at the British Chambers of Commerce (BCC), has said in an exclusive interview with Xinhua recently although some of the tariff measures introduced by U.S. President Donald Trump have been temporarily paused, they have already caused real economic harm.
"For UK companies there is no change: companies exporting goods to the United States face tariffs of 27.5 percent for cars, 25 percent for steel and aluminium products, and 10 percent rises for goods ranging from clothing to food and drink," Bain said.
He added: "U.S. average tariffs at 24 percent are still the highest since 1930."
Bain criticized the tariff strategy as counterproductive. "We regret the decisions that have been taken, particularly as they affect the United Kingdom. Our strong sense is that this will only have the effect of reducing global trade. The impact will be lower growth, disruption to trade and supply chains. That's in no one's interests."
TRADE TENSIONS ERODE UK BUSINESS CONFIDENCE
A recent BCC poll found that 62 percent of UK companies with U.S. exposure reported negative effects from the tariffs, with businesses citing disruptions to long-established supply chains, rising production costs, and heightened uncertainty in future planning.
"We're talking about source and supply chains that have existed for decades suddenly experiencing huge disruption overnight," Bain said. "Companies do need reassurance and help through a very difficult period."
Beyond immediate financial concerns, many UK business leaders are increasingly frustrated by the unpredictability of U.S. trade policy. While the UK government has maintained dialogue with Washington, there is limited information available on whether further tariffs will be introduced, or which sectors could be affected next.
"These tariffs now mean trade is more difficult with America, which was one of the largest markets we were pushed to take advantage of post-Brexit," a medium-sized UK manufacturer said in the BCC's poll.
"If trade is now going to be ultimately more difficult with the EU and America, I fail to see how British businesses are at any sort of advantage."
Bain warned that without urgent efforts to diversify trade relations, UK firms may face contracting export markets and growing exposure to external shocks. "The impact will be lower orders, increased prices for consumers in the United States, and the danger is of reduced economic growth across the globe," he said.
STRATEGIC DIVERSIFICATION
With transatlantic trade relations facing uncertainty, Bain said UK firms are increasingly focusing on opportunities beyond the United States, particularly in the Asia-Pacific region and China.
"We see great potential for UK companies to trade in China, to invest in, for example, the Bay Area developments," Bain noted. "Five percent of UK exports go to China. There is a lot of Chinese investment here in the UK. Companies here are keen to invest more in China."
He emphasized that China's scale, consistent growth, and openness to international investment make it an increasingly important partner for UK exporters seeking greater stability and long-term growth. Key areas of interest include high-end manufacturing, education, sustainable technologies, and financial services.
The BCC, Bain added, maintains close relationships with British business communities in China and views strengthened UK-China trade as a core component of Britain's future commercial strategy.
"We see the possibility of deepening our trade engagement across the Asia-Pacific region, with China playing a central and strategic role in that effort," he said.
He also called for international coordination to address the consequences of trade diversion triggered by the U.S. tariff wall. "Clearly we want to have dialogue with the Chinese government, with our other trading partners, about how we manage issues like trade diversion, which is an inevitable consequence of having a very high tariff wall in the United States," he said.
The British government has so far refrained from retaliatory action, and continues to engage in technical talks with U.S. officials. Bain acknowledged these ongoing efforts but emphasized the broader strategic imperative: "British companies must not rely on one market. Diversifying trade relationships is not optional -- it is essential."
"UK businesses are agile, and the country has a long tradition of global trade," Bain said. "The challenge now is to reduce overdependence on any single partner and seize opportunities in regions that offer greater predictability, growth and mutual benefit." Enditem
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