IoD press release President Trump’s tariffs are a blow to British business
Responding to the announcement that President Trump is imposing a 10% blanket tariff on US imports of UK goods, and a 25% tariff on all foreign-made vehicles, Emma Rowland, Trade Policy Advisor at the Institute of Directors said:
“The implementation of these ‘Liberation Day’ tariffs will be a blow to British businesses, eliminating any hopes that the UK would be able to avoid the crosshairs of the global trade war. Today’s announcements only add to the challenges businesses currently face in the UK, presenting an additional barrier to growth.
“The US is the UK’s largest single trading partner, and an important export market for UK industries, particularly automotive, pharmaceutical, chemicals and whisky. Exporters to the US will be forced to review the viability of the US as a destination for their goods, and as a supply chain location. Alternatively, they may well have to reduce their profit margins to remain competitive.
“Recent IoD data shows confidence in the prospects for the UK economy already stands at depressed levels. Meanwhile, 59% of IoD members are concerned about the impact that rising geopolitical tensions are having on their organisation. An escalation in disruption caused by the tariff agenda will only erode confidence levels further. The OBR estimates that were the average tariff rate between the US and the rest of the world to rise to 20% points, this would reduce UK GDP by 1% at peak and wipe out the Chancellor’s fiscal headroom.
“The UK government has so far sought to pursue constructive engagement with the US administration and with other trading partners. We are supportive of this pragmatic and level-headed approach. The UK benefits from being an open trading nation, with strongly integrated international links. The IoD support the government’s efforts to sustain the position of UK exporters in an increasingly fragmented global economy.”
Full Results
687 responses from across the UK, conducted between 14-26 February 2025. 16% ran large businesses (250+ people), 17% medium (50-249), 25% small (10-49 people), 32% micro (2-9 people) and 10% sole trader and self-employed business entities (0-1 people).
Which of the following global risks are the most concerning for your business in 2025? Please choose up to three
