'Staring down the barrel at higher costs': UK exporters rue US tariff chaos

UK businesses are facing uncertainty and higher costs as Donald Trump's new global tariff shift takes effect.

Governments worldwide have been scrambling for information since Friday when the US Supreme Court struck down his "Liberation Day" tariffs policy, and the president announced a temporary tax of 15% on imports into the US from all countries.

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That kicked in early on Tuesday morning according to the Reuters news agency, though there was widespread confusion initially over whether the level stood at 15% or 10%.

The Department for Business and Trade confirmed the rate was currently 10%. It remained unclear if, or when, the 15% level would apply to most UK goods.

What it means for businesses

Many British businesses are in the same position, now fearing higher costs to bring their products into America.

"Clarity is now urgently required on how UK exports will be treated on arrival into the United States", said manufacturing industry trade body Make UK.

A 15% tariff is higher than the 10% agreed under a UK-US deal back in May.

William Bain, head of trade policy at the British Chambers of Commerce (BCC) said: "While a new 10% tariff rate, instead of the threatened 15%, will provide some relief it shows how difficult it is for businesses to plan ahead.

"It is far from clear what will happen next, and whether a higher tariff rate is still on the way. Despite the immediate reprieve, there is fresh uncertainty for UK firms exporting goods to the US.

"This makes it very difficult for firms to understand the prices and margins they will be able to secure for their goods, currently under production, for export in several months' time. Inevitably this will have an impact on their sales and hit the economy."

The BCC said it had put a six-point plan to the government which included raising capacity within UK Export Finance to support affected companies and a call for the UK's global tariffs to be reviewed.

What the president has done

Mr Trump said over the weekend, after hitting out against the court ruling on Friday, that he would impose a 15% tariff rate on all countries instead.

That was up from the 10% he had announced a day earlier.

The policy, under a US law known as section 122, limits such action to 150 days' duration. If the statute is to be extended, Congressional approval must be obtained.

It had been unclear whether this 15% rate would apply to countries such as the UK, which had completed deals with the US to avoid the worst of the punitive tariffs announced last April.

What's the UK government doing?

Despite the uncertainty businesses face, the prime minister's official spokesman said he remains hopeful Washington will "honour" its previously agreed "preferential deal" and that talks had been under way.

"Discussions are happening at all levels", he added.

Asked if the UK could impose retaliatory tariffs on the US, the spokesman told journalists: "Nothing is off the table."

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Business Secretary Peter Kyle spoke to his US counterpart Jamieson Greer over the weekend and "underlined his concerns about further uncertainty for business and reinforced the need to honour the UK-US deal", the spokesman also said.

He was unable to say when the government might get clarity on how the tariffs would apply to British goods and services, or whether agreements on trade in steel and cars would be honoured.

Global chaos

Companies and governments across the world are grappling with the latest trade reality.

The world's biggest trading bloc, the European Union (EU), announced on Monday afternoon it would put ratification of its deal with the US on hold in response to the evolving situation.

"Nobody knows what will happen", the European Parliament's international trade committee chief Bernd Lange said.

"Clarity and legal certainty are needed before any further steps can be taken," he added.

On Monday, Mr Trump issued a warning on his Truth Social platform.

"Any Country that wants to 'play games' with the ridiculous Supreme Court decision, especially those that have 'ripped off' the USA for years, and even decades, will be met with a much higher tariff, and worse, than that which they just recently agreed to," he wrote.

Meanwhile, Democrats planned to unveil a bill requiring US Customs and Border Protection to issue companies refunds with interest for sums paid to bring items into the US.

At the same time FedEx, the US-based shipments firm, said it planned to sue the US ‌government to recover refunds.

A stock market sell-off continued from Friday into Monday. Most major stock indexes in Europe closed down as their US equivalents also fell.

(c) Sky News 2026: 'Staring down the barrel at higher costs': UK exporters rue US tariff chaos