Uncertainty for UK after US Supreme Court tariff ruling, experts say

UK businesses are currently facing a period of uncertainty following a ruling by the US Supreme Court that struck down a significant portion of the tariffs imposed by former President Donald Trump. These tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), included measures such as the so-called “Liberation Day” tariffs introduced in April of the previous year.

Despite the ruling, Trump announced plans to implement a new 10% global tariff and vowed to reintroduce the invalidated tariffs through alternative legal avenues. While the Supreme Court’s decision rescinded the 10% tariffs previously added to UK imports, it did not affect tariffs targeting specific sectors such as steel, aluminium, pharmaceuticals, automobiles, and aerospace. These sector-specific tariffs remain in place and are part of the trade agreements already established between the UK government and the US, which cover a substantial portion of Sino-US trade relations.

The British Chamber of Commerce (BCC) expressed that the court’s decision did little to provide clear guidance for businesses navigating this complicated environment. William Bain, the BCC’s head of trade policy, highlighted that the US administration still has mechanisms available to reinstigate the 10% tariffs on UK goods. He stressed the importance of continued diplomatic efforts by the UK government to negotiate reductions in tariffs, especially in sensitive sectors like steel and aluminium, to alleviate the trade tensions.

Concerns also arise regarding the question of tariff refunds. Economists remain skeptical about whether the US will return all the collected tariffs, with Supreme Court Justice Brett Kavanaugh warning that any refund process could be “a mess.” Trump indicated the matter of refunds could be subject to prolonged legal battles lasting years. Industry representatives like Richard Rumbelow from Make UK have urged for clear instructions on how the ruling will be executed, while trade union figures, such as Andy Prendergast of the GMB Union, welcomed the decision as a positive step for British businesses and workers who have been adversely affected by the tariffs

Read the full article from The BBC here: Read More