Money blog: Pension top-up deadline days away A 400-page list of 8,000 US goods that could be targeted by UK tariffs has been published, including items like whiskey and jeans. On so-called "Liberation Day", Mr Trump announced UK goods entering the US will be subject to a 10% tax while cars will be slapped with a 25% levy.
The government's handling of tariff negotiations with the US to date has been praised by representative and industry bodies as being "cool" and "calm" – and they urged ministers to continue that approach by not retaliating.
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Business lobby group the CBI (Confederation of British Industry) said: "Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices". Industry body the British Retail Consortium (BRC) also cautioned: "Retaliatory tariffs should only be a last resort". 'Deeply troubling'
While a major category of exports, in the form of services – like finance and information technology (IT) – has been exempted from the tariffs, the impact on UK business is expected to be significant. Mr Trump's announcement was described as "deeply troubling for businesses" by the CBI's chief executive Rain Newton-Smith. Read more: US tariffs spark global market sell-off Do Trump's numbers add up? Island home only to penguins hit by tariffs The Federation of Small Businesses (FSB) also said the tariffs were "a major blow" to small and medium companies (SMEs), as 59% of small UK exporters sell to the US. It called for emergency government aid to help those affected. "Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat," the FSB's policy chair Tina McKenzie said. "The fallout will stifle growth" and "hurt opportunities", she added.
Companies will need to adapt and overcome, the British Export Association said, but added: "Unfortunately adaptation will come at a cost that not all businesses will be able to bear." Watch dealer and component seller Darren Townend told Sky News the 10% hit would be "painful" as "people will buy less". "I am a fan of Trump, but this is nuts," he said. "I expect some bad months ahead." Industry body Make UK said the 25% tariffs on cars, steel and aluminium would in particular be devastating for UK manufacturing. Cars hard hit Carmakers are among the biggest losers from the world trade order reshuffle.
Auto industry body the Society of Motor Manufacturers and Traders (SMMT) said the taxes were "deeply disappointing and potentially damaging measure". "These tariff costs cannot be absorbed by manufacturers", SMMT chief executive Mike Hawes said. "UK producers may have to review output in the face of constrained demand".
The new taxes on cars took effect on Thursday morning, while the measures impacting car parts are due to come in on 3 May.
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