What tariffs does the UK impose on US goods? From Levi's jeans, to cars and steak

President Trump’s declaration of ‘liberation day’ has triggered apprehension across global financial markets as investors assess the ramifications of new tariffs on international trade.

The US President asserted that his ‘reciprocal’ tariffs would initiate a renaissance for American industry, while denouncing ‘unjust’ levies currently placed on US exports.

Trump aims to rectify the US’s perceived significant trade imbalances with other nations, which he describes as America importing substantially more than it exports.

The UK, which maintains a trade surplus with the US, has been subjected to comparatively modest new tariffs of 10 percent.

However, the question arises: what tariffs does Britain currently impose on imported goods? And how does this impact the US, from where approximately 10 percent of UK imports originate?

We address some of the core inquiries.

Trade Relations: UK-US Dealings

The UK has existing commerce agreements with numerous nations worldwide, spanning from Australia to Zimbabwe.

Despite considerable diplomatic engagement since Britain’s departure from the European Union, a formal trade accord with the United States remains unfinalized.

Consequently, US exporters encounter varied duties across a broad range of goods and services.

Current UK Tariffs on US Goods

Generally, standard tariffs apply to imports, while specific levies are imposed on particular categories including machinery, transport equipment, chemicals, and raw materials.

Her Majesty’s Revenue and Customs (HMRC) is responsible for collecting customs duties on goods entering the UK.

For instance, fresh or chilled bovine meat from ‘third-countries’ such as the US incurs a tariff of 12 percent, plus an additional £147 levy per 100kg of beef imported into the UK. A typical cow yields approximately 225 kilograms of beef; therefore, this would increase the price by 12 percent, in addition to £330.75.

Denim jeans, a quintessential US export, are subject to an 8 percent import tariff, along with a 20 percent Value Added Tax (VAT).

The UK also levies a 10 percent tariff on the majority of car imports – notably less than Trump’s proposed 25 percent tariffs.

> UK tariff information for international trade is available at Gov.uk

Understanding Tariff Payment Responsibility

These tariffs imposed by the UK are ultimately borne by British consumers, as they are initially paid by the companies importing the goods.

VAT, which has also drawn criticism from the White House, is distinct from a tariff.

It is applied when the end consumer is located in the UK, irrespective of the seller’s location.

VAT is a consumption tax levied once at the final point of sale to the consumer.