Local businesses who export to the US are being offered support from Staffordshire Chambers of Commerce on the back of President Donald Trump unveiling new tariffs on goods imported from other countries.
President Trump announced a raft of new tariffs on US trading partners around the world last week as part of his plan to boost America’s wealth.
A baseline tariff of 10 per cent has been put on all imports heading to the US including from the UK.
Other rates include Chinese goods being subject to 34 per cent tariffs and Vietnamese goods being subject to 46 per cent tariffs. The cost of EU goods heading to the US, will be forced upwards by 20 per cent.
Companies who bring the foreign goods into a country will need meet the amount of the tariff set.
In Staffordshire, digger maker JCB has confirmed that the tariffs will impact its business in the short-term.
Staffordshire Chambers of Commerce is joining up with the British Chambers of Commerce to call on the UK government to continue trade negotiations with the aim of lowering tariffs.
It is also providing support for the local business community.
Policy Adviser Declan Riddell, pictured above, said: “The 10 per cent tariff on UK goods is probably half of what was expected but it still represents a significant £6 billion impact to UK businesses exporting to the US. The prospect of an expanding global trade war will ultimately harm the UK’s economic growth and leads to a “lose-lose” outcome for the global economy.
“We join our British Chambers’ of Commerce (BCC) colleagues in calling on the UK government to continue trade negotiations with the US Administration, with the aim of lowering tariffs. Washington has signalled an intent to look at securing a mutually agreeable deal, so there is always hope.
“Here in Staffordshire, many of our member businesses are facing difficult choices and we ask the government to do all it can by way of offering practical guidance and support. For any businesses who export goods to the US, we would suggest that they make immediate contact with US customers and negotiate the best way to manage the impact of tariffs.”
JCB, which has been manufacturing in the USA for 50 years, has announced it will double the size of a new factory currently under construction in Texas in the wake of the new tariffs.
The Rocester-based firm’s original plans for a 500,000 sq ft factory in San Antonio needed to produce more machines in North America have now been revised and JCB is forging ahead with plans to double its size to one million sq ft.
The new $500 million plant is due to start production next year and employ up to 1,500 people.
JCB CEO Graeme Macdonald said: “In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.
“We are thankful that the tariff is only ten per cent and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks.”
Chairman Anthony Bamford said: “JCB has been in business for 80 years this year and we are well accustomed to change.
“The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.”
Staffordshire Chambers of Commerce is hosting a USA Trade Day event at its Festival Park headquarters, in Stoke-on-Trent, on Thursday, 10 April.
The event will feature five expert speakers who will help businesses trading international or stepping into global markets for the first time.
Click here for more information.
- Staffordshire Chambers of Commerce’s export documentation team can help with customs declarations and can be reached on 01782 202222 (option 2) or via the website here.
