The UK’s trade position with the United States no longer appears as strong as it did after its earlier deal with President Donald Trump’s administration, according to BBC News analysis by Faisal Islam.
The analysis says the Trump administration has repeatedly shifted its stated reasons for imposing tariffs on allies, with its latest approach effectively linking levies to concerns over goods made using forced labour. One industry figure described the measures to the BBC as “tariffs in search of an authority”.
For the UK, the broad regime is reported to remain largely unchanged. However, the BBC says the European Union has improved its position and may now hold advantages over Britain in some sectors.
Although both the UK and EU appear to face a 10% rate, the BBC reports that the EU rate is flat, while the UK rate can apply on top of other tariffs for some goods, including footwear and textiles. The UK government has also secured separate arrangements covering medicines, steel, aluminium, cars and whisky.
The BBC analysis says the EU’s stronger position is linked to its ban on goods made with forced labour, legislation the UK has not passed. It stresses that this is not an accusation about forced labour in supply chains, but a question of whether specific laws are in place that mirror the US ban.
William Bain, a trade expert at the British Chambers of Commerce, is cited as pointing to a competitive advantage for some EU exporters selling into the US.
The report says the UK government stated last October that it remained firmly opposed to state-imposed forced labour, but was considering how to reflect that position, citing operational and legal complexities. Since then, the UK has welcomed imports of Chinese cars and explored a services trade deal with China.
The BBC says the issue could increase pressure on ministers to legislate for a formal ban on forced labour products, after successive governments opted for a lighter voluntary due diligence approach. It also raises the question of whether the UK will seek changes in return for improved US trade terms, or continue with its existing sector-specific deals.
