New US tariff proposals could reshape trading conditions for UK exporters

3 June 2026

 

The United States has unveiled proposals for a new tariff regime that could make its temporary 10% import surcharge more permanent, creating fresh uncertainty for businesses exporting to the US.

The proposals follow a determination by the Office of the United States Trade Representative (USTR) that more than 60 economies, including the UK, have failed to sufficiently prohibit or enforce restrictions on goods produced with forced labour. As a result, the USTR has proposed new tariffs under Section 301 of the Trade Act of 1974.

Under the proposals, countries including the UK would face an additional 10% tariff on most goods entering the US, while some countries could face tariffs of 12.5%. The measures would effectively replace the temporary Section 122 tariffs introduced in February, which are due to expire in July.

For UK businesses, there is some positive news. Current proposals suggest that UK exports would remain within the lower 10% tariff category rather than being subject to higher rates imposed on some other economies. This means UK goods should avoid an immediate deterioration in tariff competitiveness relative to many major trading partners.

However, the situation remains far from settled.

The tariffs are currently proposals rather than final measures. The USTR has opened a consultation period, with written submissions due by 6 July 2026 and public hearings scheduled for 7 July before any final decision is taken.

What does this mean for UK exporters?

For the approximately 40,000 UK businesses exporting goods to the US, the key concern is not simply the tariff rate itself, but how the final measures are implemented.

Potential impacts include:

  • Higher landed costs for UK goods entering the US market
  • Increased pricing pressure and reduced competitiveness in some sectors
  • Changes to sourcing decisions by US buyers
  • Greater uncertainty for investment and export planning
  • Additional complexity for businesses operating through global supply chains

Some sectors may be less affected than others. Certain products are expected to remain exempt, while existing Section 232 tariffs on steel, aluminium and some other products continue to operate separately.

What does this mean for UK importers?

Although the tariffs apply to goods entering the United States, UK importers should not assume they are unaffected.

US tariff changes can alter global supply chains, trade flows and pricing dynamics. If US buyers switch suppliers, or if exporters redirect products away from the US market, UK businesses could see changes in availability, pricing and competition across a range of products.

Businesses importing raw materials, components or finished goods from international suppliers should continue monitoring developments closely.

The bigger picture

The proposals highlight the continuing volatility of US trade policy following the US Supreme Court's decision earlier this year to overturn the administration's original tariff authority.

For UK businesses, the priority will be ensuring that ongoing UK–US discussions prevent any further deterioration in market access and allow progress towards full implementation of the UK–US Economic Prosperity Deal and Technology Prosperity Deal.

While the latest proposals do not currently suggest higher tariff rates for UK goods than those already being applied, the detail of the final measures will be critical for exporters planning their US strategy for the remainder of 2026.

 

By Carla Assunção, Chamber International

 

We can help businesses assess the impact of US tariffs, review export strategies and navigate changing international trade requirements. Speak to our team.

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