Despite Donald Trump’s long-standing hostility toward Brussels, new analysis reveals that British exports are subject to higher effective tariffs in the United States than goods from the European Union. The findings have renewed concerns about the strength and future of the so-called ‘special relationship’ between the UK and the US.
According to figures from Capital Economics, documented by the Telegraph, the UK’s average effective tariff rate on exports to the US currently stands at 11.6%, compared to just 9.5% for the EU. That places Britain not only behind the bloc, but also behind countries such as Mexico, Canada, India, Thailand, and Vietnam in terms of trade access to the American market.
The disparity stems largely from the composition of UK exports, which include a significant share of items subject to sector-specific levies. While the headline tariff rate introduced by the Trump administration sits at 10% for the UK and 20% for the EU, British goods—particularly steel and automobiles—are hit by additional charges, with some items facing duties as high as 25%.
This is a particular blow to Britain’s car manufacturing sector. In 2024 alone, UK carmakers—including Jaguar Land Rover and Aston Martin—exported £9 billion worth of vehicles to the US, making automobiles the UK’s single largest export category to the country.
By contrast, a substantial portion of the EU’s exports to the US are made up of pharmaceuticals, which are protected under existing carve-outs and remain tariff-free. Similarly, Vietnam and India benefit from exemptions for electronics, while Canada and Mexico continue to enjoy preferential treatment under the United States–Mexico–Canada Agreement (USMCA).
Ironically, the higher burden on UK goods comes despite Trump’s public disdain for the EU, which he has accused of being “formed to screw the United States.” Meanwhile, Trump has publicly praised Prime Minister Sir Keir Starmer’s efforts to advocate for a trade deal, stating after a February meeting that “there’s a good chance of a deal where tariffs wouldn’t be necessary,” and adding that Starmer had “earned whatever the hell they pay him over there.”
Yet hopes of a swift trade agreement remain uncertain. Recent reports indicate the Trump administration has downgraded Britain to a “second-order priority”, with nations such as South Korea receiving more immediate attention in trade talks.
Speaking on Friday, Business Secretary Jonathan Reynolds said that “all options remain on the table” following the Government’s public consultation on the economic impact of US tariffs. “We are now in a new era for trade and the economy,” Reynolds said, “and that means going further and faster to strengthen the UK’s economy. While we analyse responses, this Government’s priority will be to build on the strength of our relationship with the US and continue talks to find a resolution for UK businesses.”
Paul Dans, a former Trump administration official and lead architect of Project 2025—a conservative policy blueprint widely considered to be influencing current White House strategy—also struck an optimistic tone. “President Trump ultimately wants to get to a yes on deals,” he said. “Now is the time for the UK to make a good deal.”
Project 2025, drafted by the US-based Heritage Foundation, is a 900-page document recommending sweeping changes to federal policy, including the abolition of the U.S. Department of Education. Many of its authors now serve in Trump’s administration, including trade advisor Peter Navarro.
As Britain looks to carve out its future in a reshaped global trade environment, its path with the US—long seen as a natural ally—remains more complicated than ever.
