UK manufacturing exporters fear impact of US tariffs: BCC survey

Twenty-three per cent think these will have a slight impact, 56 per cent said these will have no impact, and 10 per cent said they don’t know.

However, for manufacturing exporters, those most exposed to disruption to trade in goods, 28 per cent think there would be a significant impact. Thirty-four per cent think these will have a slight impact, 31 per cent said these will have no impact and 6 per cent said they are unaware.

The survey of more than 1,200 firms, of which over 260 were manufacturing exporters, was carried out between January 20 and February 7. 

“The UK should adopt a flexible and agile approach to these, while assessing the response of other major players. There is a month until the UK’s current tariff quotas expire, we would encourage ministers to respond cautiously, and retaliatory actions should only be a measure of last resort, BCC head of trade policy William Bain said in a release.

“We are likely to be facing this kind of climate for the foreseeable future. UK firms want certainty and their anxiety in the current environment is understandable. Those who can, will be mitigating their exposure to risk from tariffs but for many SMEs [small and medium enterprises] this is not an option. The continuing uncertainty is far from ideal at a time when economic growth is stagnant,” he noted.

He said it is important for the government to take a pragmatic approach to tariffs, without getting involved in the hype.

“It must also stay alert to the increased likelihood of?trade diversion with goods previously destined for the United States, being offloaded in other markets. The UK’s Trade Remedies Authority (TRA) will have to keep a very close eye on China’s export patterns on goods like clothing, textiles and footwear,” he added. 

Fibre2Fashion News Desk (DS)