The US President effectively ignited a global trade war as he unveiled tariffs on imports from around the world, including a 10 per cent levy on the UK on April 2.
Trump unveiled a baseline minimum 10 per cent tax on all imports into America, to come into effect from April 5, as he declared a “national emergency” and accused other nations – including those normally deemed as ‘allies’ – of “looting, pillaging, raping and plundering” the US over recent years.
Who is the UK’s current biggest trade partner?
The most recent data falls from 2023 and shows that America accounts for nearly a quarter of all exports of chemicals and almost a third of crude oil imports for the UK.
For exporting for the UK, a total of 15.3 per cent of all goods exported in 2023 went to the United States, making it the UK’s most recent largest trade partner. Germany ranks second, receiving 8.6 per cent of all UK goods exports, with the Netherlands ranking third with 7.8 per cent.
Ireland comes in fourth with 7.1 per cent and France fifth with 6.3 per cent.
As far as imports go, we rank second with the US in terms of partnerships; 10 per cent of all goods imported into the UK in 2023 came from the US, but coming in first for imports is Germany.
Germany is responsible for 12.7 per cent of UK goods imports, ahead of China with 9.7 per cent, the Netherlands with 9.1 per cent and France with 7.1 per cent.
What is being exported to the US?
Statistics show that £60.4 billion worth of goods were exported to the US in 2023, and machinery and transport equipment accounted for the largest share, at £27.2 billion, ahead of chemicals (£14.2 billion) and materials (£4.2 billion).
The top commodity exported by value was medicinal and pharmaceutical products, accounting for £8.8 billion of US exports, followed by cars (£6.4 billion), mechanical power generators for intermediate sale (£5.2 billion), organic chemicals (£2.8 billion) and scientific instruments for sale as capital goods (£2.8 billion).
What is the UK getting from the US?
In the most recent data, machinery and transport equipment accounted for the largest share of goods imported to the UK from the US in 2023, worth a massive £19.9 billion, followed by fuel – worth £18.7 billion – and chemicals at £7.8 billion.
The number one commodity imported by value was crude oil, accounting for £8.5 billion of total goods imports.
Gas was in second place (£6.6 billion), followed by intermediate mechanical power generators (£5.5 billion), medicinal and pharmaceutical products (£3.8 billion) and refined oil (£3.4 billion).
The world is now watching and waiting for the new tariffs to be implemented by the Trump administration.
But the announcement, set to have huge implications for the global economy, sees the US impose larger levies on some of America’s biggest allies: a 20 per cent charge on imports from the European Union, 24 per cent tariffs on Japan, 25 per cent on South Korea.
The 20 per cent tariffs on the EU drew a sharp rebuke from European Commission President Ursula von der Leyen, who said the announcement was a “major blow to the world economy”.
“The consequences will be dire for millions of people around the globe,” she said. Groceries, transport and medicines will cost more, she said, “and this is hurting, in particular, the most vulnerable citizens”.
The UK government said the United States remained Britain’s “closest ally”. Business Secretary Jonathan Reynolds said the UK hoped to strike a trade deal to “mitigate the impact” of the 10 per cent tariffs on British goods.
“Nobody wants a trade war and our intention remains to secure a deal,” said Mr Reynolds. “But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
Trump revealed the tariffs by holding up a board showing a chart with different countries that resembled a league table.
The highest tariff – 49 per cent – was imposed on Cambodia while a 46 per cent charge was imposed on imports from Vietnam.
The president said: “The numbers are so disproportionate, they’re so unfair. We’re going to have a minimum of cheating. Countries will finally be asked to pay for the privilege of access to our market, the biggest market in the world.”
Content Source: www.standard.co.uk