Shevaun Haviland, director general of the British Chambers of Commerce (BCC), cautioned that the tariffs could lead to global economic disruption and serious consequences for UK firms. “This is a marathon not a sprint,” she said, urging the UK Government to maintain a measured approach and continue negotiations with the US.
UK business leaders have warned of serious global economic fallout after the US imposed a 10 per cent tariff on all UK exports.
The BCC and CBI urged the UK Government to stay calm, avoid retaliation, and continue negotiations.
They highlighted risks to global demand, trade diversion, and supply chains, while calling for support for SMEs and exploration of alternative markets to reduce exposure.
Haviland emphasised the widespread impact of the decision: “No-one will escape the fallout from these decisions. There will be an increased risk of trade diversion, and it will wreak havoc on business communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.”
She pointed to the deep economic ties between the UK and the US – with £300 billion in bilateral trade, £500 billion in UK investment in the US, and £700 billion from the US invested in the UK – and encouraged ministers to consider all available fiscal options. “Retaliatory tariffs should only be a last resort,” she said.
Haviland called for practical support for struggling firms, particularly small and medium-sized enterprises (SMEs), and urged businesses to engage with US customers to manage the impact of the tariffs. She also highlighted the potential to explore alternative markets, including the EU and CPTPP countries, and noted support may be available through the British Business Bank’s Growth Guarantee scheme.
Meanwhile, Rain Newton-Smith, CEO of the Confederation of British Industry (CBI), echoed concerns over the global consequences of the tariffs. “Business has been clear: there are no winners in a trade war,” she said. “Today’s announcements are deeply troubling and will have significant ramifications around the world.”
Calling for a “cool and calm” response from the UK Government, Newton-Smith warned against retaliation. “Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices,” she said.
Newton-Smith noted the UK’s efforts to secure a bilateral deal with the US and stressed the importance of strengthening trade ties with like-minded partners. “The UK must use this unpredictable period to double down on its commitment to free, fair and open trade,” she said. “Doing so will provide businesses with the confidence needed to kickstart growth, foster innovation, and boost productivity.”
Fibre2Fashion News Desk (KD)
