- US Supreme Court ruling overturns Trump’s reciprocal tariffs.
- UK officials expect trade advantages with US to continue.
- Businesses warn uncertainty around future tariff policy remains.
The UK Government expects its trade advantage with the US to remain intact after the US Supreme Court struck down Donald Trump’s reciprocal tariffs, a decision that has raised fresh questions about the future of existing trade arrangements. The ruling, which challenges a key part of US trade policy, is being closely watched by businesses concerned about US tariffs and UK trade relations.
Ministers signalled confidence that Britain’s relatively favourable position — including lower tariff exposure — will continue, even as officials assess the potential impact on existing sector-specific deals covering steel, cars and pharmaceuticals.
Trump’s tariffs, introduced last April under emergency powers and applied to most countries, were overturned by the US Supreme Court in a major setback to the president’s economic agenda. The UK had faced the lowest tariff rate at 10 per cent, with subsequent agreements between Sir Keir Starmer and Trump providing additional carve-outs for key industries.
The court ruling raises uncertainty over whether those arrangements still stand, although officials reportedly believe most UK trade flows with America will remain unaffected.
A Government spokesman reportedly said, as quoted in a news report, that the matter is for the US to determine but that the UK will continue supporting businesses as more details emerge. The spokesman added that Britain enjoys the lowest reciprocal tariffs globally and expects its privileged trading position with the US to continue under any scenario.
Business groups urge caution
The US has collected more than £98.4 billion ($133 billion) since the tariffs were introduced and now faces the possibility of refunding importers following the ruling. The decision, passed by a 6–3 majority, found that a 1977 law did not give the president authority to impose tariffs without approval from Congress.
Speaking to reporters in Scotland, Conservative leader Kemi Badenoch reportedly said she was pleased with the decision, noting that tariffs increase costs for consumers on both sides and expressing hope that the ruling holds.
Business groups suggested the decision does little to remove uncertainty. William Bain, head of trade policy at the British Chambers of Commerce, reportedly said the ruling does not fully clarify the outlook and warned that Trump could still use other legislation to reintroduce tariffs. He added that the UK’s priority should remain reducing tariffs wherever possible, particularly on steel and aluminium.
Campaign group Best for Britain reportedly said the decision highlights the instability of relying on trade deals with the US and underscores the importance of strengthening trade ties with European neighbours.
