Expert comment: Trump's 30% EU import tariff

“Donald Trump's proposed 30% tariff on EU imports is likely to send shockwaves through global trade, with significant ripple effects for UK consumers and businesses. While the UK is no longer part of the EU, it remains closely tied to EU supply chains. Many British firms import components and goods from the EU that are later exported to the US, meaning UK businesses could be indirectly hit by this tariff hike.

"For UK exporters who operate as part of EU-based manufacturing or distribution hubs, this move could drive up costs, cause delivery delays, and disrupt established trade flows. Sectors such as automotive, aerospace, and pharmaceuticals where cross-border production is standard may be particularly exposed.

"UK consumers could also see prices rise if EU goods become more expensive or scarce in the US, prompting EU producers to redirect exports to other markets, including the UK. This could drive up competition and prices at home. Meanwhile, financial markets may respond with volatility, and businesses may be forced to reconsider investment or hiring decisions amid growing uncertainty.

"Ultimately, this tariff escalation risks reigniting a transatlantic trade war, creating further instability at a time when UK businesses are already grappling with inflation, interest rate pressures, increased employer NICs and post-Brexit realignments.”