The government is set to introduce a new trade plan that aims to increase exports and safeguard UK businesses in the face of uncertainty caused by US tariffs. The plan seeks to eliminate barriers for UK businesses selling overseas and strengthen the country’s trade defenses to prevent the threat of cheap imports undercutting domestic companies.
Some industries are worried that cars and steel originally intended for the US market will be redirected to the UK due to President Donald Trump’s tariffs, which have made it more expensive to sell in America. However, Business Secretary Jonathan Reynolds has assured that the UK’s plan will “safeguard British businesses from harm.”
The plan will be announced at the annual British Chambers of Commerce conference in London on Thursday.
Implementing a unilateral trade strategy may prove challenging as it involves international negotiations. The plan mainly focuses on strengthening both offensive and defensive measures. One offensive strategy outlined is providing more government financial support for exporters and aiding in understanding complex trade regulations.
However, the main focus for many is defense, particularly for industries such as steel and cars. Unlike the EU, the UK has not imposed high tariffs on Chinese-made electric vehicles, and current safeguards against cheap steel imports are set to expire in 2026. This could lead to an influx of Chinese cars, making it difficult for UK businesses to compete.
During the conference, the government is expected to announce a greater emphasis on boosting the UK’s service exports and highlight recent achievements, such as signing a free trade agreement with India. Additionally, they will mention closer trading relationships with the EU and being the first country to secure better terms with the Trump administration on tariffs.
At the beginning of his second term, Trump announced a series of import taxes on goods from other countries, arguing that this will boost American manufacturing and protect jobs. He believes that the US has been taken advantage of by “cheaters” and “pillaged” by foreign countries.
However, Andrew Opie from the British Retail Consortium, which represents retailers, believes that while the UK’s trade deals are beneficial, the biggest win for consumers would be prompt action from the chancellor on the misuse of the “de minimis” rule. This rule allows low-value packages to enter the UK without being taxed and has been heavily exploited in the past decade. Originally intended for personal purchases, some businesses have taken advantage of this rule to avoid paying taxes on their goods.
This has resulted in criticism that overseas companies such as Shein and Temu have an unfair advantage over British businesses. Mr. Opie stated that the lack of proper checks and balances on these goods entering the country puts consumers at risk of purchasing products that do not meet UK standards and retailers at risk of competition from those who sell these goods.
The trade plan follows the government’s 10-year industrial strategy, which includes a plan to lower energy costs for businesses by exempting them from certain green energy taxes. The government hopes that after the tax changes announced last autumn, which led to increased costs for businesses, this summer of strategies will demonstrate their support for businesses.