UK firms want closer EU ties in wake of US tariffs – Daily Business

British companies want the government to build closer trading relations with the the EU and other markets following US president Donald Trump’s tariffs.

A snap poll of members of the British Chambers of Commerce revealed that almost two-thirds (62%) of those trading with the US expect to be hit by tariffs.

Of these, 20% expect a significant negative impact, 42% some negative impact, while 7% report some or a significant positive impact. Only 16% expected no impact.

The survey also revealed that 40% of firms considered the 10% tariff to be better than they had been expecting. 

Alongside increasing prices, 15% said they would seek alternative suppliers, while 13% said they expected to absorb the costs. About a third (36%) said they would take no action at this time. 

The poll follows further confirmation that Prime Minister Sir Keir Starmer will take action to support British businesses, as reported by Daily Business on Friday.

Darren Jones, Chief Secretary to the Treasury, told Sky: “There’ll be further announcements from the prime minister this week on support for British business.

Mr Jones said Sir Keir has been “clear that he’s unhappy about the tariffs” but it is essential the UK reacts in a “cool-headed and calm way”.

The government has said it is continuing to negotiate with the US after it failed to come to an agreement by Wednesday last week, when Mr Trump placed 10% tariffs on all UK exports to the US.

Responding to the findings of the BCC survey, Shevaun Haviland, director general, said: “This data sets out very clearly the immediate impact of US tariffs and the extent of business concern. With retaliatory moves by other countries likely to escalate, the prospect of a global trade war is increasing, alongside a widening of the economic fallout. 

“But there is strong support for the Government’s approach to continue negotiation and not immediately retaliate. We believe a deal can be done as the US has already been open to talks.

“But firms don’t want to have all our eggs in one basket and want to see closer trading relationships with the EU and other markets.  

“They do not consider this to be an either/or scenario and we must continue to pursue a three-pronged approach of better trade relations with the US, the EU and the Indo-Pacific region.”

Ms Haviland added:  “This survey also gives an early warning sign on the economic impact in the UK of these tariffs, with price increases being the most likely response by firms. 

“Other costs are ramping up, with higher National Insurance Contributions chief among them. Businesses are facing increasingly tough conditions and investment will inevitably suffer. 

“But a recession is by no means guaranteed. The government must do all it can to head that off by providing practical support around infrastructure projects, reforming business rates and cutting red tape in the right areas. 

“It must also stick firmly to its pledge of no further tax rises for business in the autumn budget and instead consider all its fiscal options.”