The British government is set to introduce a new trade plan that aims to increase exports and safeguard UK companies amidst growing uncertainty caused by US tariffs. The plan seeks to remove barriers for UK businesses selling abroad, while also strengthening the country’s trade defenses to prevent the influx of cheap imports that could undercut domestic companies.
Some industries are concerned that due to President Donald Trump’s tariffs, cars and steel originally intended for the US market may be diverted to the UK, making it more difficult for British businesses to compete. However, Business Secretary Jonathan Reynolds has assured that the UK’s plan will ensure the protection of British businesses.
The announcement of the plan will take place during the annual British Chambers of Commerce conference on Thursday in London. The plan’s focus is not on a unilateral trade strategy, as it requires cooperation and negotiation with other countries. Instead, it aims to strengthen both offensive and defensive measures. This includes providing more financial support for exporters and assisting them in navigating complex trade regulations.
However, the main focus is on defense, particularly for industries such as steel and cars. Unlike the EU, the UK does not currently have high tariffs on Chinese-made electric vehicles, and existing safeguards against cheap steel imports are set to expire in 2026. This could make it difficult for UK companies to compete with an influx of Chinese-made goods.
The government is also expected to emphasize the importance of exporting services and highlight recent successes in securing a free trade agreement with India. They will also mention the close trading relationship with the EU and being the first country to negotiate better trade terms with the Trump administration.
Meanwhile, the British Retail Consortium has expressed concerns about the abuse of the “de minimis” rule, which allows low-value packages to enter the UK without being taxed. This has been exploited by some businesses to avoid paying taxes on their goods, giving overseas companies an unfair advantage over British ones. The consortium is calling for swift action from the government to address this issue.
The trade plan follows the government’s 10-year industrial strategy, which includes measures to lower energy costs for businesses by exempting them from certain green energy taxes. This is seen as a way for the government to show support for businesses after imposing higher costs, such as employer National Insurance contributions, last autumn.