Britain secured a 10% tariff on goods exported to the United States, compared with 15% for the European Union, prompting some Brexit supporters to claim vindication. However, trade experts note that the UK conducts twice as much trade with the EU as with the US, making the difference a 'rounding error' against the damage caused by leaving the bloc.
The UK-India trade deal, signed last week, will add just 0.13% to the economy, according to Department for Business and Trade analysis. That is slightly more than the Australia deal (0.08%), New Zealand (0.03%) or a proposed US agreement (0.16%), but far less than the estimated 15% reduction in trade volumes resulting from Brexit.
The Office for Budget Responsibility has assessed that leaving the EU will lead to a 4% reduction in the UK's potential productivity. Trade expert John Springford of the Centre for European Reform calculated that roughly 50 India-scale deals would be needed to offset the loss of EU trade, which accounts for more than 40% of UK trade.
Business and trade secretary Jonathan Reynolds described the US tariff outcome as 'a benefit of being out of the European Union'. Nevertheless, critics argue that the gains from new independent trade pacts remain negligible compared to the overall economic hit from Brexit.
