Despite ongoing criticism of Brexit, a recent trade development appears to offer a potential benefit for British businesses.
Following the implementation of new tariffs by the United States under President Donald Trump, the UK has secured a more favorable rate than its European counterparts. While American import duties were set at 20% for goods entering from the EU, the tariff imposed on exports from Britain is only 10%.
Foreign Secretary David Lammy downplayed any connection to Brexit, stating in an interview with *La Repubblica* that “We are facing a significant change in the way the global trading system works, but it has nothing to do with Brexit.” He emphasized ongoing negotiations for a broader economic agreement between the UK and the United States.
However, not all within his own party agree. Labour MP Darren Jones acknowledged this lower tariff as a positive outcome, stating, “I’ve struggled to find one in the past but there is one we’ve ended up with.”
Lammy has previously expressed strong opposition to Brexit, referring to it using terms such as “national tragedy,” “con,” and “fraud.” Reform UK leader Richard Tice criticized Lammy’s stance, labeling him a “remainiac” and also questioning the approach of Trade Secretary Kemi Badenoch.
Tice argued: “No matter how much remainiac Lammy tries to hide it, the truth is that we have avoided 20 per cent tariffs as a direct result of Brexit.” He urged the government to focus on maximizing the opportunities presented by leaving the European Union, including reducing EU regulations and fostering a business-friendly environment.
The UK government has taken a measured approach to the new tariffs, opting against retaliatory measures. Instead, officials are pursuing a comprehensive trade agreement with the US in hopes of mitigating the impact of the levies.
Key areas of concern include:
- The automotive sector is particularly vulnerable due to a 25% tariff on vehicles, in addition to the general 10% duty.
- Negotiations are ongoing to secure a more favorable trade deal with the United States.
Prime Minister Keir Starmer recently announced support measures for the UK’s automotive industry during a visit to a Jaguar Land Rover plant. He emphasized unity and resilience in response to the tariffs, stating: “These are challenging times, but we have chosen to come here because we are going to back you to the hilt.” He called for “cool heads” as the nation navigates this new period of global instability.
“We have to rise together as a nation.”
