UK US Trade Tensions Escalate as Trump Administration Imposes 10 Percent Baseline Tariff Affecting Billions in Bilateral Exports

Listeners, welcome back to United Kingdom Tariff News and Tracker, where we give you the latest updates on tariffs affecting the UK and its trading partners, especially the United States. It’s June 20th, 2025, and there’s a lot to cover, with headline news about tariffs, direct impacts on UK-US trade, and key developments from the Trump Administration. Since April 5th, 2025, the United States has enforced a 10 percent baseline tariff on imports from the UK, affecting almost all goods except those already subject to higher duties under specific categories like steel, aluminum, and automobiles. Before this, US tariffs averaged just over 2 percent on most products, so this marks a significant increase. President Trump refers to this 10 percent rate as the "universal baseline" for all countries, with exceptions and higher rates on targeted products and for countries such as China, Canada, and Mexico. While these tariffs are now in force, it’s important to note that UK exports to the US are incredibly significant—over £59 billion in 2024, making the US the UK’s largest single-country export market. For comparison, the next largest was Germany, accounting for £32 billion, and the entire EU combined at £174 billion. This move therefore has major implications for British exporters and US importers. A preliminary UK-US trade deal was announced in May, including some relief and accommodations. The UK has agreed to remove its 20 percent retaliatory tariff on US beef and set a tariff-free quota for US beef imports. There’s also a preferential quota for US ethanol. For UK automobile exports, the first 100,000 vehicles shipped annually to the US are now subject to the 10 percent tariff, while any units above that are subject to the much steeper 25 percent rate. Discussions continue regarding steel and aluminum quotas to potentially ease the burden of the Section 232 tariffs, but those higher tariffs, often at 25 percent, still apply for now unless exemptions are negotiated. President Trump’s administration maintains that these tariffs are necessary to address longstanding unfair trade practices and market access barriers that hurt American businesses, citing, for example, UK agricultural tariffs that can exceed 125 percent for some meats and dairy products. According to White House summaries, the US average agricultural tariff was just 5 percent prior to this year’s increases, while the UK’s was closer to 9.2 percent on average. Trump has positioned these policy moves as part of a drive to correct the US trade deficit and “level the playing field.” Looking ahead, the Secretary of Commerce has the authority to adjust the tariff rate for UK-origin products or impose import quotas after July 9, meaning further changes could be on the horizon depending on the outcome of ongoing talks and retaliatory measures from other trading partners. Thanks for tuning in. Don’t forget to subscribe to stay updated with every episode of United Kingdom Tariff News and Tracke This content was created in partnership and with the help of Artificial Intelligence AI.