UK tariffs on US goods: what changed and what it means

The UK and United States have had a more complicated trade relationship since 2025, when the Trump administration imposed broad tariffs on imports from most trading partners. The UK was subject to the initial tariff increases, though subsequent negotiations resulted in a partial agreement covering some goods categories. The question of what tariffs the UK has on US goods, and vice versa, now requires more nuance than it did when the two countries operated under a relatively open trade framework.

What tariffs the UK has on US goods

The UK applies the standard Most Favoured Nation tariff schedule to imports from the United States, the same rates that apply to most countries with which the UK does not have a preferential trade agreement. The UK and US do not have a bilateral free trade agreement, despite negotiations that began after Brexit. MFN tariff rates vary significantly by product category: many manufactured goods face tariffs of 0 to 5 percent, while agricultural products, particularly food and drink, face higher rates, sometimes in the 10 to 20 percent range.

In response to US tariff increases on UK exports, the UK government has reserved the ability to impose retaliatory tariffs on specific categories of US goods. The scale and scope of any retaliatory measures depend on ongoing trade negotiations and the level of US tariffs that remain in place.

What tariffs the US has on UK exports

The Trump administration's 2025 tariff package applied a baseline tariff of 10 percent to imports from the United Kingdom, with higher rates on specific product categories including steel and aluminium. UK exporters of manufactured goods to the US therefore faced a meaningful cost increase that was not present before 2025. UK financial and professional services exports, which are the largest component of UK-US trade by value, are not directly affected by goods tariffs.

The impact on specific UK export sectors varies. UK automotive manufacturers with significant US sales exposure, whisky and spirits exporters, and pharmaceutical companies with US sales have been among the most directly affected. Steel and aluminium producers were already facing US sectoral tariffs before the 2025 package.

How US tariffs affect the UK economy

The direct effect on the UK economy is smaller than the indirect effects. The UK is a more services-oriented economy than the US, and services trade is largely unaffected by goods tariffs. UK goods exports to the US represent approximately 3 to 4 percent of total UK exports, limiting the direct impact. The more significant effects are through confidence, investment decisions, and global supply chain disruption.

If US tariffs create a broader global trade slowdown, which affects the European economies to which the UK is more heavily exposed through goods trade, the second-order effects on UK growth could be more significant than the direct tariff impact. The UK's post-Brexit trade position, operating on MFN terms with the EU and without the FTA with the US that was intended to replace lost EU market access, leaves it with less preferential access to major markets than most comparable economies.

The UK-US trade relationship: the broader picture

The US is the UK's largest single-country trading partner in goods and services combined. A significant deterioration in trade conditions between the two countries would be material. Whether the current tariff situation represents a temporary disruption or a structural shift in the relationship depends heavily on the trajectory of US trade policy, which has been volatile. The UK government's position has been to seek negotiated arrangements that reduce the tariff burden on UK exports while avoiding escalation that could damage the broader relationship.

The trade environment is one of the external factors the Briefed daily briefing monitors for its impact on UK businesses and investors. For the domestic demand context, see our notes on whether the UK economy is growing and the UK inflation forecast. Free, weekdays at 6:45am.