Starting Saturday, April 5, the new tariffs imposed by U.S. President Donald Trump officially come into effect, with the United Kingdom among the countries impacted. British exports to the U.S. are now subject to a 10% tariff — a relatively milder penalty compared to the 20% levied on European Union member states. Some in the UK view this as a potential advantage of Brexit, while others see it as merely a lesser blow.
One such affected business is Doghouse Distillery, located in London, which exports a portion of its gin, vodka, and whisky products to the U.S. For Braden Saunders, the founder of the distillery, the announcement brought mixed emotions. While concerned about any increase in trade costs, he admits feeling somewhat relieved. “It’s a big relief that it’s just 10%,” he said. “When you see Europe hit with 20%, it could have been worse. But even 10% is a lot for small producers like us — it will definitely affect our operations in the U.S.”
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Despite the hit, optimism remains high among UK exporters and government officials that these tariffs might be negotiable, especially given the historically strong UK-U.S. relationship. “I’m convinced we can negotiate a reduction,” said Saunders. “Trump wants to stay friendly with the UK. With Brexit and our long-standing ties, if he’s going to strike a deal with anyone, it makes sense it would be us.”
This sentiment is echoed at the government level. Jonathan Reynolds, the UK Secretary of State for Business and Trade, confirmed that discussions with the U.S. have been ongoing since Trump’s return to office. “My colleagues and I have been in active talks with the new American administration to lay the groundwork for a trade agreement. These talks remain open, and we believe the UK is in a strong position to strike beneficial deals where possible.”
However, Reynolds also issued a warning: “We reserve the right to take any action we deem necessary if we cannot reach a deal.”
If negotiations fall through, British companies like Doghouse Distillery are already planning alternative strategies. “If the tariffs stay, we’ll likely shift more focus to other markets,” Saunders explained. “Europe is still nearby, and we maintain good relations despite Brexit. Plus, there are many promising markets out there for us.”
Beyond the alcohol industry, other key UK sectors are expected to feel the squeeze of the new tariffs. The pharmaceutical sector and automotive exports are also affected. Notably, British-made cars will now face a 25% tariff when entering the U.S.—a significant hike that may force major players to rethink their transatlantic trade strategies.
While the new tariffs have triggered concern across multiple industries, there’s a prevailing belief that the UK may still have room to maneuver diplomatically. Whether this results in actual tariff relief remains to be seen, but for now, British businesses are bracing for impact — and hoping diplomacy can soften the blow.
This article is originally published on francetvinfo
