In the latest development on global trade relations, tariffs imposed by the United States under President Donald Trump will rise by 10% for British exports starting Saturday, April 5, 2025. This increase is part of a broader trade adjustment affecting various countries, but the UK remains among the countries with the lowest tariff rates—half of what some European nations are facing. For many, this marks a silver lining, with some considering it a small benefit of Brexit, while others view it as a lesser evil in the face of escalating trade tensions.
Among the businesses affected by these changes is Doghouse Distillery, based in London, which exports a small portion of its whiskey, gin, and vodka to the United States. The founder of Doghouse, Braden Saunders, had been concerned about the possibility of significant tariff hikes, especially after Trump’s return to office. While the new 10% tariff is still a challenge, Saunders expressed relief that the rate is considerably lower than the 20% imposed on other European products. “It’s a relief! When we see the 20% on European exports… But 10%, while it may seem small, is still a lot for smaller producers. It will definitely have a serious impact on our operations there,” said Saunders.
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Despite the increase in tariffs, Saunders remains optimistic that the UK’s unique relationship with the United States—strengthened by Brexit—will offer opportunities to renegotiate the terms. Sitting on a barrel of whiskey, he explained, “I’m confident we’ll manage to negotiate a reduction in these 10%. Trump wants to remain friendly with the UK. With Brexit and the historic ties between our two nations, if he’s going to strike a deal with someone, the UK seems like the obvious choice.”
Although President Trump has not made significant moves to capitalize on this “special relationship” with the UK, the British government is eager to leverage the opportunity. Jonathan Reynolds, the UK’s Trade Minister, affirmed that a trade agreement between the two countries is still very much on the table. “Since the new administration took office in the US, my colleagues and I have engaged in intensive discussions aimed at reaching a commercial agreement between the UK and the US. These talks are ongoing. The UK is uniquely positioned to strike agreements where possible,” Reynolds said.
Reynolds also made it clear that the UK government reserves the right to take any necessary action if an agreement is not reached. “We remain committed to securing the best deal for British businesses, and we will not hesitate to act if we cannot come to terms,” he added.
For businesses like Doghouse Distillery, however, failure to negotiate a favorable deal could lead to significant changes in their market strategies. “We’ll likely focus our efforts on other markets,” Saunders noted. “We have Europe right next door, with whom we still maintain good relations despite Brexit, and there are many other promising markets for us to explore.”
The pharmaceutical sector, along with the British automotive industry, is also set to be affected by the new tariffs. British-made cars are facing a hefty 25% tariff, further complicating trade for businesses already navigating the post-Brexit landscape.
In summary, while the rise in tariffs is a challenge for British businesses, there is hope that the long-standing UK-US relationship can provide the leverage needed to negotiate a better deal. However, if these negotiations fail, companies will be forced to adapt, turning their focus to other global markets.
This article is originally published on francetvinfo.fr
