Business Awaits Court Decision On Tariffs
Commenting on the start of a US Supreme Court case on the legality of many US tariffs, William Bain, Head of Trade Policy at the British Chambers of Commerce, said:
“Businesses and governments from across the world will be watching this case closely but could still end up waiting months for a decision.
“The legality of tariffs being considered are those that President Trump has brought in under a 1977 law – the International Emergency Economic Powers Act (IEEPA).
“These include many of the so-called reciprocal tariffs that were introduced as part of the President’s ‘Liberation Day’
“But it’s important to remember that the court’s decision won’t affect all the new US tariffs, as many have been brought in under other measures.
“These include levies on steel and aluminium products, certain copper products, timber, lumber, automotives, civil aviation craft and parts, and heavy trucks and buses.
“Separately, we are also awaiting final decisions on US tariffs on pharmaceuticals and semiconductors, which are being made under a different authority.
“But many UK goods have faced additional 10% duties since the spring in terms of the tariffs being considered in the Supreme Court. These include whisky, clothing, audio equipment and toys.
“And the abolition of the de minimis threshold from the end of August has brought more UK companies into the scope of these tariffs.
“For UK businesses, the priority remains bringing tariffs down wherever possible. It’s important the UK government continues to negotiate on issues like steel and aluminium and reduces the scope of duties on a new possible range of these products from January.
“On pharmaceuticals and semiconductors, we need to make good on the promises in the Economic Prosperity Deal and ensure the UK gets a preferential agreement compared with other countries.
“The government should use every minute between now and the Budget to give exporting businesses a boost. That means relieving cost and tariff pressures with customers in the one country we do most trade with.”
