The US tariffs and the future

I asked Jasmine Birtles to explain what the US tariffs could mean for the UK because she explains complicated concepts in a very easy to understand fashion!

Trump’s Day of Liberation

Trump’s Day of Liberation has happened and governments and consumers around the world are trying to digest the impact they will have on their wealth and spending power.

Already the stock markets are getting worked up with red, down arrows showing on all the indices.

In Britain, though, we got off lightly with just a 10% tariff, (mostly), particularly as the rest of Europe had 20% slapped on them! That in itself could help our exporting ability as some European-based companies might decide to relocate to Britain in order to take advantage of the lower tariff.

Here are the main points to be aware of and how the tariffs could impact on your shopping.

UK Exports to the USA

United States is a significant trading partner for the UK, hence the government’s caution when it comes to setting retaliatory tariffs against America.

In 2023, the UK exported £60.4 billion worth of goods to the US, accounting for 15.3% of all UK goods exports. We export high end cars like Jaguar and Land Rover, whisky, aerospace parts and equipment, pharmaceuticals and chemicals.

We also exported over £126 bn in services to the US, representing 27.0% of all UK services exports.

Overall, the tariffs could reduce demand for UK goods in the US market, which would harm British manufacturers and potentially lead to job losses and decreased profitability.

However, as many of the sectors are high-end (top cars, whisky etc) it’s also possible that consumers who buy these won’t be put off by the slight rise in price. It’s also likely that individual deals could be done for sectors like aerospace where the military is involved.

Not only that but as US tariffs are being imposed across the world, particularly on China, it’s possible that the UK could do trade deals with other countries that may now be less keen to work with the USA. Frankly at this stage all kinds of outcomes are possible.

UK Tariffs on Imports from the USA

The UK could impose tariffs on 8,000 American products, including notable items such as Harley-Davidson motorcycles, Levi’s jeans, Jack Daniel’s whiskey, and toilet seats. So far, though, the government (sensibly in my view) has taken a softly softly approach to any real retaliation. China has already retaliated but, as President Trump himself commented “they panicked’.

What could this mean for your shopping?

Generally, tariffs are designed to raise prices on imported goods, not lower them. So when a country imposes tariffs (like the US just did to the UK), UK goods will be more expensive in the US, and US goods could become more expensive here in the UK if we retaliate.

If we don’t impose retaliatory tariffs on the US-made goods then we shouldn’t see much of a difference in price there.

However, in the short term there are a few scenarios where UK consumers might actually find some bargains on shelves:

Overstock or Dumping to Avoid Tariffs

If UK exporters rush to offload stock meant for the US (because tariffs suddenly make them uncompetitive there), they might sell that surplus domestically at a discount. Think luxury food items (like cheese, biscuits, or whisky), cars, or even fashion goods. For example, a whisky distiller who can’t sell to the US anymore might offer steep UK discounts or “export batch” sales.

Domestic Discounts from Repatriated Inventory

If US retailers or distributors cancel UK orders (due to higher costs), UK companies may be stuck with inventory they were planning to export. That could mean sales or outlet stock on products that were meant for overseas—especially seasonal items, tech gadgets, or automotive parts.

Currency Side Effects

If trade tensions cause the pound to weaken, imports into the UK might get more expensive—but UK-made goods could become cheaper locally if sellers are no longer relying on high-margin export markets.

So while tariffs themselves don’t create bargains, the economic shockwaves might.

Are tariffs the evil that so many seem to think?

Not as far as I am concerned.

There are many downsides to high tariffs on trade, but the prime upside to me is that it starts the end of globalisation in the world.

Globalisation has been great for middle and upper classes who have managed to buy cheap washing machines, cheap cars and cheap games consoles made in China, India, Taiwan or Korea. At the same time the working classes in the West – certainly in the UK – have been hollowed-out. |Whole swathes of the North, North-East, West and Midlands have become social wastelands as their traditional manufacturing has been moved to China and jobs have not been replaced.

Globalisation has been generally bad for the West which has not only lost its productivity and social cohesion but has become a wasteful, consumerist society that throws away cheap electrical goods when they go wrong and just bought new ones rather than getting them mended.

The imposition of tariffs, to me, marks the beginning of a new trade world order and potentially a new political world order where globalisation is replaced by localism, where we go back to making our own products, eating our own food and cutting down on air miles and wasteful consumerism.

It will take years to shift to this new gear and those years will be full of upheaval and uncertainty but they have to come in order to bring back some sort of prosperity and self-respect to the nations and communities in the West that have lost hope.

If nothing else, it’s going to be a wild ride to get there!

About Jasmine Birtles money expert

Jasmine Birtles is the author and founder of the popular consumer money website Money Magpie.  She is a TV personality, columnist, ‘money guru’, presenter, speaker and freelance journalist.

Jasmine Birtles is the founder of MoneyMagipe.com. Sign up to the newsletter.

She’s also the author of *38 popular books including one Times best-seller. (The Little Book of Abuse). Financial titles include ‘Beat the Banks‘, ‘The Money Magpie’,  and ‘A Bit on the Side’.

Find out more at her website JasmineBirtles.com

Follow Jasmine on Twitter @jasmine and Instagram @jasminebirtles

*affiliate link