UK halts tariffs to protect businesses from Trump's trade war
Photo: UK Prime Minister Keir Starmer (Getty Images)
UK Prime Minister Keir Starmer is suspending import duties on dozens of goods to support British companies affected by new tariffs imposed by US President Donald Trump, The Telegraph reports.
The British government will reduce to zero, for two years, the levies on 89 goods - from electric vehicle batteries to fruit juice. These rates will be in effect until July 2027.
Among the goods with reduced duties are aluminum wheels and components for electric car batteries, in order to lower costs for British companies after Trump introduced new import levies to the US.
The list of goods whose tariffs have been reduced to zero also includes agave syrup, a sweetener used in baked goods and cocktails, foodstuffs such as pasta, canned pineapples and pine nuts, fruit juice, coconut oil, and plant bulbs.
Duties have also been reduced on imports of plywood and plastics to ease pressure on the construction industry.
This is part of a broader package of measures aimed at supporting companies directly impacted by the introduction of new tariffs by the US. It also includes an expansion of the government's loan program for such firms.
The British government forecasts that this initiative will allow businesses to save 17 million pounds sterling a year, and part of these savings may potentially be passed on to consumers.
Trump's tariffs
At the beginning of April, US President Donald Trump imposed new tariffs on imports of goods from more than 180 countries worldwide. Depending on the country and specific groups of goods, the rates range from 10 to 54%.
Later, Trump suspended additional customs tariffs for 90 days for more than 75 countries that approached the US with proposals for negotiations. During this period, a single customs duty rate of 10% was established for these countries.
The United Kingdom avoided the worst consequences of Trump's trade war when he imposed tariffs on imports from various countries worldwide. However, even despite this, the UK was affected by a 10% tariff, which dealt a blow to businesses.
In addition, Trump introduced a separate 25% duty on automobiles - the largest category of British exports to the US in the first nine months of 2024.
In response, British manufacturer Jaguar Land Rover suspended deliveries of its cars to the US.
To assist businesses, the British government also announced plans to expand financial support for national exporters for 20 billion pounds sterling (26 billion US dollars).
