On Wednesday 12th March 2025, the US introduced 25% tariffs on UK steel and aluminium exports, creating uncertainty for businesses on both sides of the Atlantic.
The BCC led UK business reaction in major media outlets, including City AM, Bloomberg, AP, and Sky News.
William Bain, BCC Head of Trade Policy, said: “This is a difficult day for trans-Atlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty.
“Products made with UK steel and aluminium play an important part in many supply chains in the US. Both sides will now be facing up to negotiations on how the burden of these new tariffs will affect businesses in both countries.
“Despite this action, UK firms will want to keep trading with their customers and clients in the US and vice versa. Our commercial, investment and trading relationships remain strong.
“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth. More tariffs are also on the agenda for the start of next month which will add fresh uncertainty into the mix.
“BCC research shows that 63% of our manufacturing exporters were concerned about the impact of tariffs before their introduction.
“But today’s setback does not mean we have reached the end of the road in terms of negotiations. Tariffs can be lifted at any time.
“Businesses will be looking to the UK government to continue dialogue, with the US, to resolve this situation and restore certainty for firms, which has been badly lacking over recent weeks.
“Against this background, a series of tit-for-tat tariffs could easily spiral into an all-out trade war and would do the UK little benefit.
“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort.
“If talks succeed, it would be a win-win, bringing welcome stability and pro-growth economic conditions for both sides.”
William Bain also warned that: “Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth.”
Read comments by the BCC here
Jonathan Reynolds, Business and Trade Secretary of the Department of Business and Trade also responded: “It’s disappointing the US has today imposed global tariffs on steel and aluminium.
“We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy.
“Meanwhile we remain resolute in our support for UK industry. This Government is working with affected companies today, and I back industry’s application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers.
“I will continue to engage closely and productively with the US to press the case for UK business interests. We will keep all options on the table and won’t hesitate to respond in the national interest.”
On the 13th March President Donald Trump announced a potential 200% tariff on wine, cognac, and other alcohol imports from Europe. This statement was made in response to the European Union’s plan to impose tariffs on American whiskey and other products starting in April, which is a countermeasure to Trump’s 25% tariffs on steel and aluminum imports.
Britain's Prime Minister, Sir Keir Starmer MP, met with US President Donald Trump in the White House on 27 February 2025. Following the Prime Minister’s visit to Washington, the BCC submitted a paper to Treasury, DBT, and FCDO outlining UK business concerns about potential new US tariffs.
The US administration has confirmed that duties on electronic transmissions of goods and services will remain off and aims to make this policy permanent. This is a positive step for the UK, which exports over £110bn in services to the US each year.
The US government’s proposed reciprocal tariffs could significantly impact UK exporters, with potential tariff rates exceeding 20% if non-tariff barriers are included. Read the comments.