UK warns of rising costs as US raises tariff to 15 per cent

Wed, 25 Feb 2026, 04:32 WIB | Source: ANTARA_ID | Trade

London (ANTARA) – Several British business groups on Monday (23 February) warned that the new 15 per cent global tariff announced by US President Donald Trump could trigger higher costs for British exporters and add a new burden to transatlantic trade.

The move follows a US Supreme Court ruling that overturned the legal basis for a series of large-scale tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, a key pillar of Trump’s policy known as “reciprocal tariffs” as part of the president’s touted “Day of Liberation” trade agenda.

In response to the ruling, Trump cited Section 122 of the 1974 Trade Act to impose a new 15 per cent tariff on various types of imported goods. While some countries have seen a reduction in tariffs compared to previous levels, the UK and Australia are among the countries now facing even higher effective tariffs.

William Bain, head of trade policy at the British Chambers of Commerce (BCC), said the move is equivalent to a 5 per cent tariff increase on various types of British goods exported to the US, excluding products covered by the Economic Prosperity Deal (EPD) with Washington.

“This will increase tariff costs on British exports to the US by between £2 billion and £3 billion (£1 = Rp22,748) or approximately $2.7 billion to $4.05 billion ($1 = Rp16,818),” Bain said.

“Around 40,000 British companies that export goods to the US will be disappointed with this latest development,” he added.

The US remains the UK’s largest single trading partner, so any tariff adjustments are highly sensitive for British exporters.

Over the past year, London has successfully secured tariff reductions under the EPD scheme, and business leaders have said it is crucial that the agreement continues to be fully respected.

Sean McGuire, Director of European and International Affairs at the Confederation of British Industry (CBI), said the immediate impact could be limited if the US maintains the provisions within the agreement.

However, he warned that an increase from 10 per cent to 15 per cent would “erode profit margins, reduce the competitiveness of British goods in the US market, and create additional pressure for exporters already facing an increasingly fragmented and unpredictable global trading environment.”

Although the Supreme Court ruling has clarified the limits of the president’s authority under the 1977 Act, several business groups say Trump still has other legal tools to adjust tariffs.

The new 15 per cent tariff must be approved by Congress within 150 days, which opens the door for further political manoeuvring.

According to Bain, the ruling also raises questions about whether US importers can reclaim previously paid duties, and whether British exporters can obtain rebates, depending on the applicable commercial terms.

For now, as British companies face increasing uncertainty due to geopolitical tensions, supply chain fragmentation and slowing global growth, analysts say that sustained high tariffs could burden British exports and transatlantic trade flows more broadly.

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