The dust is far from settled on US president Donald Trump’s seismic tariff announcements last week, with several of the world’s largest economies set to unveil countermeasures over the coming days and as the UK announces new industry support for car manufacturers.
There’s also another Lunchtime Learning session on Thursday (10 April), giving members the chance to pose questions on the EU’s new General Product Safety Regulation (GPSR) to Chartered Institute of Export and International Trade Imports Advisory Lead Ilona Kawka.
US tariff fallout
History was made last week when Trump announced ‘reciprocal’ tariff rates on US trading partners ranging from 10% to almost 50%, with such wide-ranging protectionism unseen in recent years.
On Wednesday (9 April) reciprocal rates will come into force for countries like the EU (20%), India (26%) and China (34%). The latter now faces an estimated total tariff rate of more than 60% on its goods, according to some economists, when accounting for existing country-specific tariffs of 20% and the impact of new rates on cars and steel.
China reacted swiftly, announcing its own retaliatory tariffs last Friday – a blanket 34% on all US imports – which will come into effect on Thursday.
EU response
The EU is slated to unveil its response on Friday (11 April). Later today (7 April), the European Commission (EC) is expected to propose a list of US goods to the 27 members states that could be targeted in the EC’s response.
Reuters reports that this could include products ranging from meat, cereals, wine, wood and clothing to chewing gum, dental floss, toilet paper and vacuum cleaners – an estimated US$28bn of US imports.
Securing a unified response from the EU would be difficult, with wine exporters in Italy and France already expressing concern about the measures.
Ireland, which sends a third of its exports to the US, has repeatedly called for a calmer response.
Taoiseach, Simon Harris, spoke of greater consensus for negotiation rather than retaliation in an interview with Newstalk Radio:
"I've spoken to most of my European counterparts... and my strong sense now is that the majority view by some distance is to take a calm, measured response and to try and get the U.S. to the table"
This contrasts with EC president Ursula von der Leyen’s strong words last week when she warned of retaliations: "If you take on one of us, you take on all of us”.
Other levies
Those countries not subject to ‘reciprocal’ measures, were still handed a blanket 10% tariff rate for their goods on Saturday (5 April).
Many of the 122 countries in this bracket recorded a trade surplus with the US, including the UK, Australia and the United Arab Emirates.
The UK is currently weighing its own response to the tariffs, with the government launching an industry consultation last week. You can contribute to the Chartered Institute’s response by sharing your views at publicaffairs@export.org.
UK economic data
Data is set to be released this week that could offer an indication of economic confidence following Trump’s tariff announcements.
The UK’s monthly GDP estimate will be released on Friday. The National Institute of Economic and Social Research (NIESR) has said that the UK could record zero growth this year due to the tariffs.
NIESR researchers warned that securing a trade deal with the US should become a priority and that, “even if the UK were exempt from these tariffs, economic activity could still suffer due to broader global disruptions”.
Treasury ministers reported last week that government officials are “negotiating intensively” with US counterparts to secure a deal. This coincided with the Department of Business and Trade drawing up a list of products it could target with retaliatory measures in the event an agreement isn’t made.
Trade outlook
Trade figures will be released the same day. Figures published last week (4 April) highlighted that, prior to the watershed introduction of the 10% tariff, the US was the UK’s biggest national export market for goods and services – worth £182.6bn in the year to October 2024.
At the end of January 2025, cars were the UK’s single most exported good, with £32.5bn sold overseas over the previous 12 months.
Data from the Society of Motor Manufacturers and Traders showed that the UK’s car industry is increasingly dependent on exporting, with 77% of units manufactured domestically and then sold abroad.
Although over half of these go to the EU, a sizeable minority of 16.9% (1 in 6), go to the US. These cars will now also be subject to the 25% auto tariff Trump also introduced last week.
Prime minister, Sir Keir Starmer, has announced additional support for auto manufacturers today. He also pushed back the deadline for Net Zero car production to 2035.
Highlighting the impact on the UK’s auto-sector, iconic UK brand Jaguar Land Rover (JLR) announced that it would begin “pause” shipments to the US this month.
The company added that this would take place in the short term, as JLR “work[s] to address the new trading terms” with its business partners.
Chartered Institute
On Thursday, Chartered Institute Imports Advisory Lead, Ilona Kawka, will be leading a new instalment of our member-exclusive webinar series Lunchtime Learning, this time considering the EU’s GPSR, which came into effect in December.
GPSR holds goods not already covered by existing product safety legislation to higher standards in order to protect consumers. Placing obligations on manufacturers, importers and distributors, those within product supply chains must carry out product risk assessments, monitor product compliance and withdraw potentially harmful products from the market.
This Lunchtime Learning will be a Q&A session, with Kawka taking more time to answer your GPSR questions on the topic. To submit questions ahead of time, please get in touch with us at content@export.org.uk, and you can still sign up for the session here.
Other dates in the diary
Monday – World Health Organization report on maternal mortality
Tuesday – US trade representative Jamieson Greer makes Senate committee appearance
Wednesday – India interest rate decision
Thursday – ‘Coalition of the Willing’ defence ministers meet in Brussels
Friday – EU finance ministers meet
Saturday – Presidential election in Gabon following 2023 military coup
Sunday – Presidential election runoff in Ecuador
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