The UK government has secured two major trade agreements with leading global economies in moves that will present British businesses with a range of opportunities to grasp… and some disastrous outcomes predominantly avoided.  

A week of deals began two days ago with the announcement of a truly historic free trade agreement with India, the fastest-growing economy in the G20 and a market over over a billion consumers. 

The government estimates that the agreement will boost bilateral trade by £25.5 billion, remove trade barriers, and make it easier for UK and Indian businesses to send talented workers to each other’s countries. 

Standard Chartered CEO and head of coverage in the UK, Saif Malik, noted that: “The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor. “

So what’s in the deal?

First, the UK has lowered taxes on goods imported from India, including clothing and footwear, jewellery, some cards and food products. 

India, in return, has cut rates on imports from the UK spanning cosmetics, scotch whiskey, luxury cars, lamb and salmon, aerospace products and electrical machinery. 

For UK luxury carmakers currently caught in the crosshairs of Trump’s auto tariffs (although more on that later), this will come as particularly good news, as it will for Welsh sheep farmers, fisheries, and whiskey producers in the Highlands. 

The deal isn’t in effect straight away, though, and there is some staggering of tariff reductions. For example, tariffs on whisky imported from India to the UK will be halved to 75% to begin with, and eventually reduced to 40% after 10 years. Car tariffs will see a more immediate drop, from 100% now to 10% as soon as the deal comes into effect. 

Why this deal is significant for UK businesses and also the economy is that India is a thriving, fast-growing economy with a steadily growing middle class. Yet exports and imports to this thriving market are less than 2% of total output for the UK. In fact, we sell nearly 3x as much to the Netherlands as we do to India right now. 

The deal is therefore a nice-to-announce now, but could be fundamental to future UK economic growth in the future. If India’s economy continues to surge, and there are some forecasts which suggest it could become the 3rd or 4th major economy in the world and could end up adding $1tn in exports by 2030. 

So the question for the UK businesses right now should be, can we get in on that economic action?

And what about the agreement with the US?

Perhaps more consequential in the immediate term is the new trade agreement between the UK and the US – the first such agreement that the Trump administration has announced since upending global trade with his tariff war. 

The full details of the agreement are still to emerge, but here’s what we know so far:

1. 10% tariffs still broadly apply
2. 0% tariffs on steel and aluminium 
3. The UK auto sector can send 100,000 vehicles into US at a 10% tariff, not 25%, protecting tends of thousands of UK jobs in auto manufacturing. Currently, the UK sends 101,000 vehicles a year, so the deal represses growth but protects industry in its current state.
4. Rolls-Royce engines to continue being sold in US tariff-free
5. UK buying £10bn US planes – to be detailed and announced later on
6. A special agreement for the pharmacy sector with a ‘significantly preferential outcome’ according to the Prime Minister
7. US agriculture will have more access to UK markets for things like beef with reduced taxes on ethanol too

More technical details and the full text of the agreement are to be released shortly. 

The view from Go Exporting

Go Exporting CEO Mike Wilson has shared his thoughts on what this consequential week for exporting news means for UK firms:

“You wait around for half a decade (since Brexit) for a consequential trade deal, and then two come along at once.

“The free trade agreement with India is truly historic and has been years in the making. It opens up the world’s fastest-growing economy with a huge and emerging middle-class consumer base to numerous critical British industries, spanning aerospace to whiskey. 

“The economic and opportunity uplift from this agreement will take some time to play out, but businesses that make moves today will be best placed to benefit from the opportunities that will arise tomorrow. 

“Critical for UK firms in the here and now is the newly announced deal with the US. The government has done well to muscle its way to the front of the queue with the White House to arrange such an agreement, and it will bring some peace for key UK sectors, including critical automotive firms. 

“Although 10% tariffs remain for most, there are benefits for auto manufacturers, steel and the aerospace industry. Farmers may pay the price with the opening of the UK market to US beef, however – we will know more as the full text is released.

“The devil may be in the details, so let’s wait and see, but the sentiment seems to be to move forward to the benefit of both countries.”

This article was written for Go Exporting by 24:Hour Authorised Representatives, specialists in AR services.

Expanding into the European Union (EU) offers significant growth opportunities for exporters, but it also comes with regulatory obligations, particularly concerning product safety. The General Product Safety Regulation (GPSR), which strengthens consumer protection and market surveillance, sets stringent requirements for businesses selling products in the EU. Failure to comply can lead to severe financial penalties, product recalls, and reputational damage.

This article explores the key aspects of GPSR compliance that exporters must consider when entering the EU market.

Understanding GPSR and Its Applicability to Exporters

The GPSR applies to any company placing consumer products on the EU market, whether established within or outside the EU. Exporters must ensure that their products meet essential safety requirements, comply with EU standards, and undergo proper risk assessments before being sold.

The regulation aims to enhance consumer safety by holding businesses accountable for ensuring their products do not pose risks to health and safety.

Key principles of GPSR include:

• Product safety: Products must meet EU safety standards and be free from hazards under normal and foreseeable use.
• Risk assessment: A comprehensive analysis of potential risks must be conducted for each product.
• Compliance documentation: Proper documentation, including conformity assessments and technical files, must be maintained.
• Market surveillance: Authorities can conduct inspections, issue recalls, and enforce corrective actions for non-compliant products.
• Consumer rights: Clear instructions, warnings, and traceability information must be provided to consumers.
• Accountability: Economic operators, including manufacturers, importers, and distributors, must ensure compliance throughout the supply chain.

Key Compliance Considerations for Exporters

1. Ensuring Product Safety and Compliance with EU Standards

Exporters outside the EU must verify that their products comply with relevant EU safety directives and regulations, including:

• Specific EU harmonised standards for regulated products such as electronics, toys, and medical devices.
• Chemical safety regulations under REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals).
• CE marking requirements for products covered by sector-specific EU regulations (note that CE marking does not apply universally under GPSR).

2. Conducting Risk Assessments and Safety Evaluations

Exporters must conduct thorough risk assessments to identify potential hazards. This includes:

• Evaluating the intended and foreseeable use of the product.
• Identifying mechanical, chemical, electrical, or safety risks.
• Implementing mitigation measures to minimise risks.

3. Establishing Clear Traceability Systems

GPSR requires economic operators to maintain clear records for product traceability. Exporters should ensure:

• Products are marked with batch or serial numbers.
• Manufacturer/importer details are included on packaging.
• Documentation proving compliance is retained for at least 10 years.

4. Appointing an EU-Based Responsible Person

Non-EU exporters must designate a Responsible Person within the EU to handle compliance issues and liaise with market surveillance authorities. This individual ensures that products meet GPSR requirements and are appropriately documented.

5. Labeling and Providing Consumer Information

Products must include:

• Accurate and clear labeling in the official language(s) of the destination country.
• Instructions for safe use and maintenance.
• Warnings or precautions where necessary.

6. Preparing for Market Surveillance and Compliance Checks

EU authorities actively monitor and inspect products to ensure compliance. Exporters should be prepared for:

• Random product checks and document verification.
• Potential recalls or corrective actions for non-compliant products.
• Collaboration with authorities in case of safety concerns.

7. Implementing a Product Recall and Incident Reporting System

In case of safety risks, exporters must:

• Have a recall plan in place.
• Notify relevant EU authorities through the Safety Gate system (formerly known as RAPEX).
• Inform consumers and take immediate corrective actions.

8. Verifying Supplier and Supply Chain Compliance

Many exporters rely on third-party manufacturers. To ensure compliance:

• Conduct due diligence on suppliers and verify their adherence to EU standards.
• Include product safety clauses in contracts.
• Regularly audit production processes and material sourcing.

9. Maintaining Technical Documentation

Exporters must compile and store compliance documentation, including:

• Risk assessment reports.
• Test results and safety certifications.
• Technical files detailing product specifications and materials used.

10. Training Staff on Product Safety Requirements

Ensuring employees understand GPSR requirements is crucial. Regular training should cover:

• Identifying potential safety risks in products.
• Understanding EU labeling and documentation requirements.
• Responding to compliance inspections and recall situations.

Consequences of Non-Compliance

Failure to comply with GPSR can lead to severe consequences, including:

• Product recalls and removal from the EU market.
• Fines and legal actions from regulatory authorities.
• Damage to brand reputation and loss of customer trust.
• Restrictions on future exports and market entry bans.

Steps to Achieve GPSR Compliance

For exporters entering the EU market, the following steps can help ensure compliance:

• Assess product safety: Identify risks and implement necessary safety measures.
• Verify compliance with EU standards: Ensure adherence to relevant directives and regulations.
• Establish clear documentation: Maintain detailed records for traceability and audits.
• Appoint an EU representative: Designate an authorised representative to serve as a Responsible Person for compliance oversight.
• Develop a recall and incident response plan: Prepare for potential safety concerns.
• Train employees and partners: Educate staff and supply chain partners on safety requirements.
• Engage with compliance experts: Consult regulatory professionals for guidance.

Conclusion

Expanding into the EU presents lucrative opportunities for exporters, but GPSR compliance is a critical consideration. By understanding product safety requirements and implementing robust compliance measures, exporters can build trust with EU consumers, avoid penalties, and establish a strong presence in the European market. Prioritizing safety not only ensures regulatory compliance but also enhances brand reputation and long-term business success.

Mark your diaries for what may be one of the less jovial contenders for a new national holiday in recent history. On the 2nd April, a date branded as ‘Liberation Day’ by President Donald Trump, the United States will impose sweeping 25% tariffs on imported cars and automotive parts. 

The controversial measure aims to revitalise domestic manufacturing, a cornerstone of Trump’s ‘America First’ strategy, but it’s a move that will hit both partner and competing economies hard – including the UK’s carmakers. 

How will the UK automotive sector be impacted?

The UK automotive sector, having just regained its feet after Brexit, and the pandemic, and surging energy prices, is going to be hit hard. Jaguar Land Rover is especially exposed as it exports 100% of its US sales with no state-side manufacturing base. Vehicle prices will rise, curbing consumer demand across the Atlantic and risking profitability for one of Britain’s iconic luxury carmakers.

According to industry analysts cited by The Independent, the UK automotive sector could see costs increase substantially, putting thousands of jobs at risk across manufacturing hubs in the West Midlands and North East of England. 

Other car giants around the world which are particularly exposed include Volvo, Mazda, VQ, Hyundai and the German saloon giants too. 

Impact beyond UK borders – the global automotive tidal wave

The tariffs will also cause some collateral damage. Major manufacturers such as Tesla and Ford heavily rely on international supply chains, sourcing parts from China and other global manufacturing hubs. The US automotive sector, therefore, faces increased production costs, which will inevitably pass down to American consumers, potentially dampening domestic car sales and manufacturing employment – especially for newer vehicles.

Data from industry bodies shows that a typical car manufactured in the US includes approximately 40% imported parts, underscoring the interconnectedness of global automotive production.

UK exemption hopes fading

The UK had previously hoped to secure an exemption from these damaging tariffs, particularly following a notably positive diplomatic visit by Prime Minister Keir Starmer to the White House. 

However, the mood music out of Downing Street has darkened and it looks a though the UK will be lumped in with everyone else when it comes to auto tariff treatment. 

Mixed reaction in the USA

In the United States, reaction to the tariffs has been deeply divided. Supporters, primarily from manufacturing regions in the Rust Belt, see tariffs as a necessary measure to restore domestic production capabilities and protect American jobs. Opponents, however, warn that higher tariffs will escalate vehicle prices for US consumers, reduce sales volumes, and potentially trigger job losses across the automotive retail and repair sectors.

Economists warn of broader impacts too, including reduced consumer spending power, increased inflationary pressures, and heightened risks of economic recession – potentially counteracting any intended economic gains from the tariffs.

Short-term and long-term strategies for UK businesses

So, what can UK-based auto firms do? In the immediate term, exporters should brace for disruption. Firms should urgently assess their exposure to US markets, actively monitor pricing strategies, and potentially explore absorbing short-term costs to retain market share. Strengthening supply chain resilience through alternate sourcing and stockpiling critical components will also be prudent, something that US firms have been doing since Trump returned to the White House. 

For longer-term stability, diversification remains essential. UK companies heavily reliant on the US as a large percentage of its sales base should actively explore new international markets, particularly in growing economies in Asia and Africa, alongside reinforcing trade partnerships within Europe and Commonwealth countries.

This is a turbulent time for businesses on both sides of the pond. Having honest, open and constructive dialogue with suppliers and customers will be essential.

The good news? Literally everyone is in the same boat. As with Brexit, those who adapt best will be best place to ride out this tide of tariffs and come out swimming on the other side. 

President Donald Trump has this week warned he may impose a 25% tariff on goods entering the United States from the EU. During a speech, he claimed that the EU “was formed to screw the United States” and argued that existing trade flows are unfairly weighted against American interests. While details of any forthcoming measures remain unclear, the very suggestion has raised alarms among businesses and policymakers across Europe.

So what does the current trading relationship between the two giant blocs look like? What is the current state of affairs, potential repercussions on both sides of the Atlantic, and how might UK exporters find themselves in a unique position – particularly as the UK has a smaller trade deficit with the US compared to the EU as a whole?

What’s going on?

President Trump’s comments were made in a public address, in which he criticised what he perceived as unfair EU trade practices. Central to his argument is the EU’s trade surplus with the US, which he views as evidence that American companies and workers are not receiving equitable treatment. By threatening tariffs of up to 25%, Trump appears to be pressuring Brussels to reconsider existing trade agreements or forge new pacts more favourable to the US.

These remarks have rekindled fears of an escalating trade conflict, similar to those seen during previous tariff disputes with Mexico and Canada where last-minute offers were presented to appease the Trump administration. At present, however, no official action has been taken, and it remains to be seen if the President’s comments will swiftly translate into concrete policy, or are simply another bargaining chip to get what he wants.

What does the current US/EU trade relationship look like?

Despite periodic disagreements, the US and the EU have traditionally enjoyed a robust economic partnership, exchanging high volumes of goods and services. This long-standing relationship is built on deeply intertwined supply chains and mutual dependence, although it has faced tensions on various fronts over the years.

The EU runs a significant trade surplus with the US, mainly driven by high-value exports such as automobiles, pharmaceuticals, and other manufactured goods. President Trump and others argue that this indicates the US is not getting a ‘fair deal’, although many economists point out that trade imbalances can stem from wider consumer demand patterns and complex global supply chains, rather than outright protectionism.

The most traded products between the two blocs are:

• From the EU to the US: Cars, machinery, chemicals, pharmaceuticals, and luxury consumer items consistently dominate export lists.
• From the US to the EU: American businesses send large volumes of aircraft, technology, medical equipment, agricultural products (like soybeans), and services.

Previous disputes, such as those over aircraft subsidies or digital services taxes, have occasionally strained relations, but rarely led to across-the-board tariffs on this scale. President Trump’s latest warning signals a potentially broader clash.

Potential impact of the proposed tariffs

Should the US enact 25% tariffs on EU goods, the consequences would likely be widespread, affecting companies, consumers, and entire industries both in Europe and America.

EU businesses
European exporters could face immediate cost increases that make their products less competitive in the US market. Industries already in the spotlight – particularly automotive and luxury goods – would likely feel the brunt of the impact, with smaller firms relying heavily on American sales at the greatest risk.

US businesses
While tariffs are aimed at protecting domestic production, they often push up input costs for American firms reliant on European components or raw materials. Increased prices could dent competitiveness and force companies to either absorb losses or pass higher costs to consumers.

Supply chain disruption
Many American and European production processes are interlinked, relying on parts sourced from multiple countries. Tariffs would add complexity, potentially prompting businesses to shift supply chains elsewhere – a costly and lengthy endeavour.

Risk of retaliation
Historically, major economies respond to tariffs with countermeasures, escalating a tit-for-tat cycle. The EU might retaliate by imposing tariffs on key US exports, such as agriculture, technology, or aviation products. Any such moves would add further unpredictability to the business environment on both sides.

Implications for UK-based businesses

The UK’s departure from the Single Market places British exporters in a distinct position: with a less pronounced trade deficit with the US, President Trump may not be as strongly targeted by British goods. If the EU faces steep tariffs and the UK avoids them, this divergence could create opportunities for British businesses to become a conduit for trade between Europe and America.

Potential as a gateway

• Re-exporting EU goods: If UK-based companies act as intermediaries, funnelling goods from the EU to the US, they could capitalise on avoiding direct tariffs—provided that rules of origin and customs obligations can be met without incurring the same duties.
• Rules of Origin complexities: However, navigating rules of origin is crucial. If components or finished products are largely EU-sourced, re-routing through the UK might not automatically sidestep American tariffs.
• Greater investment: If the UK is perceived as a more favourable transatlantic trade springboard, it may attract inward investment from EU businesses seeking to shield themselves from US tariffs. This could stimulate job creation and growth within Britain.

Still, these prospects hinge on the details of any new US–UK trade arrangements, as well as the exact scope of tariffs imposed on EU goods. UK exporters should remain watchful of these developments to gauge how they might leverage any comparative advantages.

Key takeaways for UK exporters

1. Monitor policy announcements: Changes can happen swiftly. Stay abreast of official communications from both Washington and Brussels to anticipate potential shifts in tariff regimes.
2. Assess supply chains: If you import components from the EU for re-export to the US, review the rules of origin to ensure compliance and limit unexpected costs.
3. Plan for contingencies: Diversify trade partners and product lines where possible. Reducing dependence on a single market or region is a prudent strategy in uncertain times.
4. Explore new opportunities: If the UK remains exempt from heightened US tariffs, it may be an opportune moment to strengthen relationships with American buyers or form partnerships with EU firms looking for a tariff-friendly route across the Atlantic.

While it remains unclear whether President Trump’s threat will materialise into widespread tariffs, the message is clear: the US–EU trade relationship could be on the cusp of a dramatic shift. For UK exporters, the priority should be staying informed, nimble, and prepared for the potential to both mitigate risks and seize new opportunities as the transatlantic trade landscape evolves.

The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

As of 15th December last year, the UK became the first European member with 11 other partners including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The joining of the trade bloc has been marked as a ‘red letter day’ by commentators, with the Head of Trade Policy at the British Chambers of Commerce, William Bain, noting: “There are few multi-national trade agreements like this one. It connects us to a fast-growing region of the global economy and will create new opportunities for both inward and outbound investment.”

The CPTPP trading bloc accounts for 15% of global economic output in a fast-growing region, with the deal expected to offer opportunities for UK SMEs to take advantage of reduced costs to import components and export manufactured goods. 

Membership is expected to deliver a number of benefits for the UK and its businesses. Alongside a say in how the bloc develops and strengthens ties with growing economies, it will also open new markets for service providers, help diversify supply chains, and cut tariffs on goods exports. The deal is expected to deliver a £2bn boost to the UK economy each year. 

There is particular interest in the opportunities to do more business with Vietnam and Malaysia, with Jennifer Lopez – CEO of the British Malaysian Chamber of Commerce – saying: “The entry-into-force of the UK’s membership into the CPTPP marks a groundbreaking achievement, transforming trade relationship and unlocking exciting opportunities for businesses in the UK and Malaysia.  

“As this is the first-ever free trade agreement between Malaysia and the UK, it is a historic moment in elevating the longstanding partnership between our nations. It paves the way for collaboration in emerging sectors like digital trade, green technology, and advanced manufacturing.”

Capitalise on emerging markets

If you’ve spotted a potential opportunity to increase trade within the CPTPP bloc, Go Exporting can help make that a reality. 

We have the experience and expertise to support you through the process from start to finish, from initial market research and entry strategy, through to customs and compliance, finding distributors, and driving sales. 

Learn more about our international trade consultancy here.

UK exporters are facing an uphill battle right now as the latest available data for Q3 2024 showed steep declines in export volumes. 

Data from the ONS showed a near 10% month-on-month decline in UK goods exports in September alone, which included a 10.9% fall in EU goods exports. Outside the EU, volumes fell by 8.7%. 

A fall in machinery and transport equipment, fuel and chemical sales were noted as primary sources of decline. 

Goods imported also fell but by a smaller amount, 3.1% overall including 1.4% from the EU.

Services bucked the trend somewhat with a 0.5% real-terms increase in activity, though the value of those exports is expected to have contracted slightly. 

In terms of value, goods exported fell by £3.4bn following a rise in August, and the total goods and services trade deficit widened by £1.5bn to £11.4bn in Q3. 

Head of Trade Policy at the BCC, William Bain, said of the latest figures that: “The UK’s broader economic slowdown in the third quarter of the year is clearly reflected in the trade data. September’s export data reflected the continued volatility in goods, in the last few months, with a further large drop in UK exports across the world.  

“Taking Q3 overall, both goods and services exports fell, which is a real concern. There seems little sign so far of the uplift in global trade which economic forecasters predicted for the second half of 2024. 

“The data points to the need for the Government’s promised Trade Strategy to deliver durable improvements in export performance and for stronger support measures to raise sales in key markets.  

“It must also look at removing non-tariff trade barriers with the EU, and strong implementation of new trade deals with fast-growing markets. A concerted effort is needed to create the conditions so businesses can generate fresh exports.”

There was some better news in October’s trade data with Uk services export volume rising 2.5%.

Grow through the growing pains

It’s been a painful trading period for a number of exporters, but firms that are bold enough to grow through the growing pains are finding opportunities and seeing sales grow. 

The key is to be strategic with growth plans, and only invest where real market potential exists. 

Go Exporting specialises in helping companies to expand in international markets profitably; from export readiness, customs and compliance and market research through to devising and implementing strategy. 

Learn more about our exporting growth plans here. 

Donald Trump winning the 2024 presidential election so resoundingly was a shock to almost everyone aside from those who voted for him.

The fallout of this year’s race has been far more subdued than in 2021, but for businesses in the UK, and indeed the UK’s entire economy, there was a shock within the noise of the rhetoric that could have profound consequences if implemented.

As part of his winning pitch to the US electorate, Trump promised to impose a blanket 20% tariff on all imports into the US – a move which could cost the UK a substantial £22bn in lost exports. That was the immediate response. Analysis and comment pieces in the weeks since have been more mixed, with potential opportunities for UK firms and the UK economy itself.

Immediate reactions to the Trump tariff proposal

The announcement of a proposed 20% tariff on all imports into the United States prompted widespread alarm from policymakers and trade experts across the UK. The Centre for Inclusive Trade Policy (CITP) at the University of Sussex estimated the tariff could lead to a £22bn reduction in UK exports to the US. This amounts to a 2.6% contraction of overall export activity and underscores the potential disruption that could ripple through key industries heavily reliant on US trade. Sectors such as fishing, petroleum products, and mining are particularly vulnerable, with projected export reductions of 21.5%, 20.9%, and 20.4%, respectively. Potentially industry-closing levels.

For the UK’s broader economy, prospects mightn’t wouldn’t be much brighter. According to the National Institute of Economic and Social Research (NIESR), economic growth could fall to just 0.4% in 2025 if these tariffs take effect, compared to the 1.2% growth projected in a tariff-free scenario. Such an economic slowdown would compound challenges already posed by post-Brexit trade barriers, the ongoing energy crisis, and inflationary pressures. Businesses relying on transatlantic exports, including aerospace and automotive manufacturers, would face significant headwinds.

The immediate reaction among business leaders has been one of urgency and concern. Many firms have called for greater government support to help mitigate the fallout. This includes calls for financial assistance, supply chain realignments, and diversification of export markets. While government intervention can provide a temporary reprieve, many analysts caution that such measures alone may not be enough to counteract the systemic challenges posed by tariffs of this magnitude.

The response in Westminster has been similarly vocal. Trade experts and MPs alike have underscored the need for a diplomatic approach to prevent these tariffs from materialising. Discussions around reviving elements of the US-UK free trade agreement talks have gained traction, although analysts warn that the political appetite for bilateral trade deals under Trump may be limited. The UK government faces a delicate balancing act: maintaining its relationship with the US, while seeking alternative trade avenues if needed.

It would take a monumental diplomatic effort to get the UK some sort of tariff pass, especially given the comments made about Trump from Labour frontbenchers.

Opportunities amidst the challenge

While initial analyses painted a bleak picture, subsequent commentaries have offered a more balanced perspective, suggesting that the UK economy could, in certain respects, outperform its rivals. The Centre for Economics and Business Research (CEBR) highlighted that the proposed tariffs, while potentially reducing GDP by 0.9%, could also present strategic opportunities for the UK to pivot and innovate. For instance, the UK’s regulatory flexibility post-Brexit positions it uniquely to adapt to shifting global economic landscapes.

One potential area for growth lies in green technology and clean energy. Analysts have noted that if the US under Trump de-emphasises investment in these sectors, the UK could seize the opportunity to become a leader in these burgeoning industries. With government backing and international partnerships, British firms could establish themselves at the forefront of clean energy technology, attracting global investment and fostering economic resilience. This approach would also align with the UK’s broader commitment to achieving net-zero carbon emissions by 2050.

Another area of focus is strengthening economic and trade ties with the European Union. Research from the CITP revealed that nearly 50% of trade experts believe that improving relations with the EU should be a top priority – including here at Go Exporting. A closer partnership with the EU could offset some of the economic damage caused by US tariffs. Improved EU relations would facilitate smoother trade routes, reduce bureaucratic barriers, and offer access to one of the world’s largest markets. For sectors such as manufacturing, pharmaceuticals, and financial services, an EU-oriented strategy could prove crucial.

Furthermore, there are opportunities to recalibrate the UK’s trade strategy to target emerging markets in Asia and Africa. These regions are experiencing rapid economic growth and offer lucrative prospects for UK exporters. Diversifying trade partnerships could mitigate dependence on the US market and bolster long-term economic stability. Programs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could play a pivotal role in achieving this diversification.

Ultimately, while the Trump tariffs present a formidable challenge, they also serve as a wake-up call for UK policymakers and businesses to embrace innovation, diversification, and resilience. The emphasis should now shift to leveraging the UK’s unique position as a post-Brexit, globally connected economy capable of adapting to shifting geopolitical currents. Strategic investments in emerging industries and robust partnerships with new and existing allies may enable the UK to weather the storm and emerge stronger.

Whether or not Trump’s tariffs come into effect or not waits to be seen. If they do, there could be Brexit-level upheaval for many firms and entire sectors within the UK economy.

Let’s wait, watch, and see.

This summer, Go Exporting CEO Mike Wilson joined Alibaba’s Eric Cross for a webinar examining the opportunities for US firms to trade in the EU. 

The talk covered a broad range of topics including industry-specific opportunities, market statistics, administrative structure, key markets and culture and approach. 

Watch the webinar in full below. 

Find out more about exporting into the UK in this free guide where we cover everything from approvals and VAT to market research, customs and compliance, and effective marketing.