Donald Trump's new global tariffs have come into force at a rate of 10%, despite the US president threatening a higher levy of 15% over the weekend. The implementation provides “some relief” for British businesses, according to the British Chambers of Commerce (BCC), but uncertainty over future trade terms remains.
The tariffs, applied under section 122 of the Trade Act of 1974, follow a Supreme Court ruling that struck down Mr Trump's earlier “liberation day” tariffs as illegal. The US customs agency confirmed a 150-day period for the 10% duties, though the president has said he would raise them to 15% at any time.
William Bain, head of trade policy at the BCC, said: “While a new 10% tariff rate, instead of the threatened 15%, will provide some relief it shows how difficult it is for businesses to plan ahead. It is far from clear what will happen next, and whether a higher tariff rate is still on the way.” He warned that the uncertainty would hit sales and the UK economy.
Separately, FedEx has sued the US government seeking a refund of tariffs paid after the Supreme Court decision, in the first such challenge by a major company. Trade experts predict further legal challenges, including against the new 10% levy, which may also face constitutional hurdles under its legal basis.
The European Parliament paused work on ratifying the US-EU trade deal following Trump's announcement, but European Trade Commissioner Maroš Šefčovič said US officials had assured him they stood by the agreement. The situation continues to evolve as the 150-day tariff period unfolds.
