US Trade Deal Tariff Breakdown: UK vs EU

The full and comprehensive details have yet to be released. However, for those seeking a brief overview, the current state of trade between the United States and the European Union is summarised in the attached White House Fact Sheet (Click Here). A corresponding account from President von der Leyen is also available (Click Here). It is important to note that these deals do not carry the legal authority of bread of a formal Free Trade Agreement (FTA) and are not legally binding (subject to formalisation).

Some commentators have highlighted the apparent competitive advantage to the UK with its lower general tariff rate. However this might be a somewhat superficial assessment, given the potential impact of the agreement on the strength of the US dollar. As many polymer prices are denominated in US dollars, fluctuations in the currency could have significant implications. This is further compounded by the complexity of trade relationships among the EU, the UK, and the US, where components frequently cross borders during production processes.

We at the BPF welcomes your views on whether these recent tariff announcements are likely to be advantageous to the UK and will input feedback directly back into the Department of Business and Trade (DBT) in our weekly meetings. Please contact Mohamed Elkhalifa on [email protected] for more information.

Philip Law, Director General of the British Plastics Federation commented:

"While the de-escalation of trade tensions is to be welcomed, the terms of this agreement present notable concerns for the UK and EU plastics sectors. The imposition of a 15% tariff on EU plastic exports and a 10% tariff on those from the UK—both significantly above the previously established MFN rate of 6.5%—risks eroding the competitiveness of our manufacturers in a vital export market.

We urge the UK Government to engage constructively with its counterparts and with industry to ensure that the UK plastics sector is not placed at a structural disadvantage. It is essential that the ongoing disputes around steel and aluminium are also resolved in a way that supports a fair and balanced trading environment."

Below is a summary of the tariff deals agreed: