Chartered Institute of Export & International Trade director general Marco Forgione shared his views on the latest US tariff announcement.
This follows the Trump administration's decision to impose tariffs of between 10 and 12.5% on a number of trading partners, including the UK, following the negative outcome of an investigation launched under Section 301 of the Trade Act 1974:
"The announcement of new US tariffs on 60 countries, citing forced labour concerns, is disappointing but not surprising. Ever since the Section 301 investigation was launched, this outcome was predictable.
"What is deeply unfortunate is that the UK has been included in the list of countries impacted. This news will send a fresh wave of uncertainty through the UK trading community.
“It is vital that the UK government continues to engage intentionally with the US administration on this issue. We have seen the impact of recent successful diplomacy with the US, in relation to whisky tariffs, and we must not forget the important basis of the UK-US Economic Prosperity Deal."
Background
Successive federal courts have ruled against the Trump administration's attempts to impose flat tariff rates, or 'reciprocal tariffs', on trading partners.
This began in February with the Supreme Court's ruling that the White House's use of the International Emergency Economic Powers Act 1977 to introduce a flat 10% duty rate on trading partners in 2025 was illegal.
This has since resulted in the creation of a refund system to repay tariffs to US importers that paid unlawful duties.
After the launch of the 301 investigation into trading partners, the administration used Section 122 of the Trade Act 1974 to reintroduce the 10% rate on an interim basis, owing to the law only permitting the levies for a maximum of 150 days.
A case brought before the US Court of International Trade saw the federal court rule that the use of Section 122 was also illegal.
The 301 measure, claiming that trading partners have failed to effectively outlaw forced labour from their supply chains, is therefore the latest US attempt to apply a flat levy rate to a overseas goods.
