US Collects Record Tariffs on British Goods as UK Exporters Feel the Squeeze

Britain’s manufacturers have come under increasing pressure as the United States has collected an unprecedented 1.36 billion dollars in tariffs on British exports in just four months. This figure is six times higher than the same period last year and surpasses the tariffs paid on exports from rival nations such as France and Spain.

Figures from the US International Trade Commission highlight just how much British firms are feeling the pinch. Between April and July, tariffs on UK goods outstripped those from France, which came to 1.35 billion dollars, and dwarfed those from Spain at 615 million dollars. This spike follows President Trump’s “liberation day” policy shock, which altered the tariff landscape for global exporters to the US.

The UK government managed to secure a new trade deal with the US, which came into effect at the end of June, maintaining tariff rates at 10 per cent for key British sectors such as steel and automotive. In contrast, the US raised tariffs on European Union imports to 15 per cent from August, a change that is not yet shown in the latest commission data.

Despite the lower tariff rates for the UK compared to those imposed on the EU, US buyers of British goods faced the 12th-highest duty levels globally. Compared to the same period in 2024, when US tariff revenues from British goods were only 211 million dollars, the surge is stark and illustrates the mounting difficulties for British exporters.

China remains the leading source of US tariff revenue by a considerable margin, with 36 billion dollars collected in four months. Mexico and Japan followed, at 7.6 billion and 6.5 billion dollars respectively. British goods still represent a relatively small proportion of overall duties, but the growth rate signals a trend that UK businesses will need to watch closely.

A government spokesman emphasised that the UK secured the lowest tariffs for crucial sectors and one of the most favourable rates in the world, insisting that any new deals will prioritise the national interest. The spokesman stated, “We will continue to work hard to implement this deal with the US to protect British jobs and put more money in people’s pockets.”

Yet, the economic data shows a tangible impact on trade volumes and costs. Average US tariff rates have reached 18.6 per cent, according to research from Yale University’s Budget Lab, making it the highest level since 1933. While some of these costs are borne by US importers, they inevitably affect the demand for British goods and can trickle down to consumers.

Analysis by the Peterson Institute for International Economics estimates the US collected 122 billion dollars in tariff revenue between January and July. With more tariff changes rolling out throughout the year, experts anticipate tariff revenue will continue to rise, although slower trade growth may eventually temper this upward trend.

British exporters now face an evolving competitive landscape in the United States. As tariff pressures mount, the ability of UK businesses to adapt will play a crucial role in their long-term prospects on the other side of the Atlantic.