Donald Trump's latest tariffs have reduced the EU's near-blanket levy to match the UK's rate, leaving British businesses in sectors not covered by last year's Turnberry deal at a competitive disadvantage, according to experts cited by the Guardian.
Key facts
- The EU's previous 15% near-blanket tariff has been reduced to 10%, matching the UK's rate, according to the Guardian.
- The UK's overall tariff level is unchanged from the deal struck by Keir Starmer and Peter Mandelson last year.
- The new levies were announced late Thursday and are said to be aimed at countries engaging in forced labour.
- Trump was sued hours after the new tariffs took effect, with experts questioning whether they will hold up, according to CNBC.
- Trump also imposed 25% duties on Brazilian imports and vowed 50% tariffs on Canadian goods, CNBC reported.
Donald Trump’s latest round of tariffs has put UK businesses at a disadvantage against the European Union, even though the overall tariff level for British goods has not changed, experts have said, according to the Guardian.
In the levies, announced late on Thursday and said to be aimed at countries that engage in forced labour, the EU’s previous 15% near-blanket tariff has been reduced to 10%. That is the same level as the tariff deal struck by Keir Starmer and Peter Mandelson last year.
The Guardian reports that while the overall levy for the UK is unchanged, sectors that are not covered by the Turnberry deal now face tougher competition, as the EU’s rate has been brought into line with the UK’s.
The broader tariff package has drawn immediate legal challenges. According to CNBC, Trump was sued within hours of the new tariffs taking effect, and experts have suggested the measures may not hold up.
CNBC also reported that Trump has renewed a flurry of tariffs, including 25% duties on Brazilian imports and a vow to impose 50% tariffs on goods from Canada, underscoring the wide reach of the latest trade actions.
Why it matters
Tariff levels directly affect the cost and competitiveness of exports, shaping which businesses win overseas contracts and jobs. By narrowing the gap between the UK and the EU, the changes could disadvantage British firms in sectors outside last year's Turnberry deal, while pending lawsuits add uncertainty over how long the measures will last.
Frequently asked questions
Did the UK's tariff level change under the new measures?
No. According to the Guardian, the overall tariff level for the UK is unchanged. The disadvantage comes from the EU's rate being reduced to match the UK's 10%.
What is the EU's new tariff rate?
The EU's previous 15% near-blanket tariff has been reduced to 10%, the same level as the UK's deal, according to the Guardian.
Are the new tariffs facing legal challenges?
Yes. CNBC reported that Trump was sued hours after the new tariffs took effect, and experts have said they may not hold up.