Why do experts say Trump’s latest tariffs put the UK at a disadvantage compared to the EU, despite the UK’s headline tariff rate remaining at 10%?

Experts say the UK is at a disadvantage because while the US reduced the EU’s blanket tariff from 15% to 10% and reinstated additional exemptions for sectors like cork, diamonds, aircraft parts, generic medicines, and active ingredients, the UK’s Economic Prosperity Deal (EPD) only locks in the 10% rate and preferential treatment for cars, pharmaceuticals, and aerospace — leaving UK exports in sectors such as bikes, clothing, chemicals, beverages, and gifts without equivalent tariff relief; for example, a British knitted jumper faces a total 22.5% tariff (12.5% base + 10% EPD), whereas an EU jumper now enters the US at the all-inclusive 10% rate.

What specific advantage did the UK gain from the new US tariff measures, and how does it contrast with the broader disadvantage?

The UK gained a zero-tariff deal on Scottish whisky, announced separately on Friday, giving it a clear advantage over Irish and French spirits, which still face a 10% US duty; this benefit is narrow and sector-specific, contrasting sharply with the broader disadvantage across many other export categories where the EU now enjoys a more comprehensive 10% all-inclusive tariff regime — including expanded exemptions not available under the UK’s EPD — thereby undermining the UK’s overall competitive position in the US market.

Experts Say Trump’s Latest Tariffs Put UK at Disadvantage to EU

Jul 24, 2026

Experts warn Trump's new tariffs disadvantage UK businesses against the EU in sectors like chemicals and beverages, while UK whisky and pharma gain tariff-free access. The EU benefits from reduced blanket levies, impacting global supply chains for medicines and industrial goods.

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Experts Say Trump’s Latest Tariffs Put UK at Disadvantage to EU

Experts Say Trump’s Latest Tariffs Put UK at Disadvantage to EU

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