The US has imposed a new 10% tariff on most UK goods, replacing a temporary levy at the same rate, as Donald Trump continues his trade strategy under a different legal mechanism.
The measure took effect on Friday morning and covers 60 trading partners, accounting for 99.4% of US imports. Rates range from 10% to 12.5%, with the UK placed in the lower band.
For British fashion and retail businesses exporting goods covered by the US tariffs, the cost stays the same for now, as the previously set temporary global tariff rate remains in place. Tariffs are paid by importers, although those costs can be passed through supply chains and eventually reach consumers.
The duties exclude goods already covered by Section 232 national-security tariffs, including automobiles, steel, aluminium and copper, alongside categories such as oil and gas, aircraft parts, critical minerals and certain food products.
Shipments loaded before the measure took effect also receive a short exemption, provided they enter the US before 12.01am Eastern Time on 28 July.
UK businesses retain the same headline rate
The UK government said its agreement with Washington remained in force and that the announcement produced “no negative change to the tariff rate facing UK businesses”, a UK government spokesperson told Reuters.
However, the British Chambers of Commerce said the UK had lost a comparative advantage over the European Union. William Bain, the organisation’s head of trade policy, said the EU’s arrangement was all-inclusive, while the UK’s 10% universal tariff could apply alongside duties on individual products.
“So there will be some concerns in the business community this morning about what the UK needs to do to get the same treatment the European Union has got here,” Bain told the BBC.
Washington cites forced-labour controls
The Trump administration imposed the tariffs under Section 301 of the Trade Act of 1974 following investigations into trading partners’ controls on goods made with forced labour.
US Trade Representative Jamieson Greer told the BBC that the tariffs would “begin to correct what is both a human rights abuse and a distortive trade practice, to improve the welfare of workers everywhere”.
The new legal basis follows a February 2026 Supreme Court ruling that struck down many of Trump’s earlier global tariffs imposed under emergency powers. The administration subsequently introduced a temporary 10% surcharge, limited to 150 days, which expired as the latest duties took effect.
Trade experts have questioned whether Section 301 authorises tariffs on this scale, raising the prospect of another legal challenge. The administration is also investigating 16 countries over alleged manufacturing overcapacity, which could lead to further duties.