{"id":150024,"date":"2025-04-03T11:38:46","date_gmt":"2025-04-03T10:38:46","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=150024"},"modified":"2025-04-09T14:28:58","modified_gmt":"2025-04-09T13:28:58","slug":"liberation-day-uk-construction-industry-responds-to-trump-tariffs","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/liberation-day-uk-construction-industry-responds-to-trump-tariffs\/150024\/","title":{"rendered":"‘Liberation Day’: UK construction industry responds to Trump tariffs"},"content":{"rendered":"

President Trump announced a range of tariffs on imported goods, including 10% import tax on British goods entering the US, on what he called America’s Liberation Day<\/h2>\n

Using the powers of an Executive Order, Donald Trump<\/a> signed a variety of tariffs last night, with the intent of strengthening American industry through penalising foreign imports.<\/p>\n

The UK received some of the lowest tariffs, but the impact will still be felt across multiple industries<\/h3>\n

The UK received a 10% tariff, placing the country in the ‘baseline’ category, whilst the European Union was hit with 20%, Japan with 24% and China with a whopping 54%. Other countries in the baseline category include Singapore, Brazil, Australia, New Zealand, Turkey, Colombia, Argentina, El Salvador, United Arab Emirates and Saudi Arabia.<\/p>\n

The president also announced a 25% tariff on “all foreign made-automobiles”, effective immediately.<\/p>\n

Speaking to UK business leaders after the announcement, prime minister Sir Keir Starmer said \u201cClearly, there will be an economic impact from the decisions the US has taken both here and globally.\u201d He went on to acknowledge that \u201cnobody wins in a trade war\u201d but emphasised that the UK had a \u201cfair and balanced trade relationship with the US\u201d.<\/p>\n

International markets saw an impact immediately, with the FTSE 100 Index<\/a> falling 122.4 points or 1.4% in the first few minutes of trading on opening this morning.<\/p>\n

Industry reactions to the Trump tariffs ranged from disapproving to despondent<\/h3>\n

Viki Bell<\/a>, CEO of the Construction Equipment Association (CEA), commented:<\/h4>\n

\u201cThe introduction of a 10% tariff on UK goods, with higher levels on automotive, steel, and other metals exported to the US, is deeply concerning, particularly given the existing pressures manufacturers face. With surging operational costs, high energy prices, and ongoing skills shortages already squeezing businesses, these tariffs risk exacerbating an already challenging situation. The situation for our members in Northern Ireland is more complicated, and it will take time to understand the complexities of that area.<\/p>\n

“Historically, UK-US trade relations have supported growth, jobs, and innovation across both our economies. Our government has been keen to stress this morning that they are ‘engaging with the Trump administration to press the case for alleviation and are well advanced.’ Now is certainly not the time for measures that undermine this long-standing, mutually beneficial partnership and disrupt crucial supply chains that span multiple markets. We support the sentiment that this is not the time for a trade war.<\/p>\n

“It could undoubtedly have been worse\u2014but, as always, the devil is in the detail. In the coming days, we\u2019ll closely examine precisely how these tariffs will impact construction equipment manufacturers and their integrated supply chains.<\/p>\n

“We urge the government to act swiftly, provide clarity for businesses, and establish a dedicated Tariffs Taskforce, similar to those successfully implemented during the Brexit process. This would help our industry navigate these tariffs practically and swiftly, minimising disruption at a crucial time.\u201d<\/p>\n

Brian Berry, Chief Executive of the FMB commented:<\/h4>\n

“The ongoing economic situation will be of great concern to businesses across the world, with the construction industry no different. The FMB\u2019s State of Trade Survey for Q4 2024 found that approximately 67% of small builders have had to charge higher prices for their services as a result of rising material costs. What is particularly alarming is that 52% of FMB members who experienced rising costs reported lower-than-expected business profits or financial losses, with around 8% saying that rising costs were compromising their business\u2019s viability, putting them at risk of closure.<\/p>\n

“A prolonged period of economic uncertainty risks major harm to small builders both in terms of products imported from abroad, and the wider impact on the markets, for example with regards to steel manufacturing. At last month\u2019s Spring Statement, the Chancellor Rachel Reeves placed her hopes for economic growth squarely on the shoulders of the nation\u2019s housebuilders, and it is vital the Government gives the industry the support it needs to help rebuild Britain.”<\/p>\n

Johnathan Dudley, partner and head of Manufacturing at Crowe, commented:<\/h4>\n

\u201cLooking ahead, it will remain vital to focus on seizing opportunities to promote more UK and European manufacturing. You cannot control what you cannot control, so it\u2019s important for UK businesses to concentrate energy and efforts on what they can.<\/p>\n

\u201cFor UK industries, including steel production, processing and the automotive supply chain, the tariffs come at a challenging time. It\u2019ll be key for these industries to assess their options and explore diversification – particularly in light of the UK government’s increase in defence spending and healthcare.”<\/p>\n

Ian Worth, director, VAT and Customs Duty, at Crowe, commented:<\/h4>\n

\u201cIt is crunch time for many of the world\u2019s exports to the U.S. If the exported product is currently in transit, it\u2019ll likely face Trump\u2019s revised tariffs by the time it reaches the U.S.<\/p>\n

\u201cThe anticipated move to charge tariffs at the time of export \u2013 as opposed to on arrival to the U.S. \u2013 has the potential to cause a number of issues. It also raises the question \u2013 if the tariff has been paid in advance, does that mean the product has cleared customs in the U.S.?<\/p>\n

\u201cAs tariffs come into play, it is likely that countries will reassess where they can export their products. If more products are \u2018dumped\u2019 in the UK, this could further knock the UK\u2019s manufacturing industry and jeopardise any efforts to onshore manufacturing. It\u2019ll be important for the UK to prepare for this and consider anti-dumping measures to support UK manufacturing businesses.\u201d<\/p>\n

\u201cThe key for UK businesses will be to analyse their exposure and consider opportunities to diversify and access new markets.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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