With a new 15% tariff applied to goods imported into the US from 24th February, East Midlands Chamber has given its backing to a proposal sent to Government calling for immediate support to ease increased cost pressure on exporters.
The British Chambers of Commerce (BCC) has presented six steps to Government it says would alleviate pressure on firms that export overseas, following the 5% increased import tariff announced by President Trump, taking the level to 15%.
Research conducted by the BCC has found a quarter of exporters believe a 10-15% cost increase would put more than half their overseas sales at risk, while one in eight exporters have already looked at strategic changes to reduce their exposure to uncertainty around US tariffs.
The six-step plan proposed to Government by the British Chambers of Commerce:
- Carry out co-ordinated diplomacy with key international partners to encourage the US Administration to lower the 15% tariffs as soon as possible. Meet with the US Administration and Congressional decision-makers and involve impacted UK businesses
- Implement the Economic Prosperity Deal and Technology Prosperity Deal in full
- Raise the capacity of UK Export Finance from £80bn to £100bn, to support exporters as they deal with increased cost pressures
- Increase facilities and loans from the British Business Bank to support firms facing unexpected increases in costs and strain on cashflow
- Review the UK Global Tariff (UKGT) to see what further support can be provided to UK manufacturers on import and component costs
- Boost export support to allow firms to explore other international markets; including the FCDO-BCC Diplomatic Advisory Hub and BCC Trade Accelerator programme
East Midlands Chamber Head of Trade Lucy Granger said: “Exporters have been hit with what has felt like a never-ending barrage of on-off US import tariff announcements across the last year, fuelling anxiety and apprehension about trade with the US and with the revelation of a further 5% increase, the cost of export to the US has hit an almost unbearable level that needs to be addressed.
“The six-step proposal the British Chambers of Commerce has compiled should be seen as an action plan for Government to implement as the current situation of constantly changing US import tariffs and sky-high costs is no good for exporters.
“Diplomatic discussion with US policymakers needs to be stepped up to try to bring down tariffs, while increased support from UK Export Finance and fully implementing the Economic Prosperity Deal and Technology Prosperity Deal are among measures in the six-point proposal that, if adopted, would ease the immense pressure on exporters.
“East Midlands Chamber’s International Trade department works with exporters in navigating any added complexity involved in trading with the US and as part of that is delivering a number of events sharing useful insight, while we stand ready to support exporters with any concerns they have.”
