In a swift and far-reaching move, the US government has imposed tariffs of up to 25% on more than 400 British-made products that contain steel or aluminium. The measures have caught UK manufacturers off guard, sending shockwaves through sectors such as automotive, heavy machinery and consumer goods.

US Tariffs Hit UK Manufacturing

1) What’s happening — and why it matters

The tariffs took immediate effect, meaning goods already en route to the US now face unexpected charges and port delays.

Scope and surprise: Affected items include washing machines, motorcycles, furniture, fire extinguishers and children’s products.

Policy drivers: The action reflects renewed US protectionism, with domestic steel and aluminium interests pushing for tougher trade barriers.

Industry impact: UK manufacturers now face steep compliance hurdles, extra costs and serious doubts over export viability.

2) Sector spotlight: automotive and heavy machinery

JCB has warned the tariffs will cost the company hundreds of millions of pounds, affecting exports of diggers and heavy plant, including military contracts in the US.

Triumph Motorcycles has been hit with sudden cost increases despite strong US sales.

Premium carmakers such as Aston Martin and Jaguar Land Rover are also exposed, with some pausing US shipments and flagging pressure on profits.

These sectors are particularly vulnerable because a significant share of global sales depends on the American market.

3) The wider UK manufacturing climate

The broader picture is weakening.

The CBI reports order books at their softest since early 2025.

Export demand has declined, with the US no longer among the strongest growth markets for UK producers.

Confidence is fragile, with firms citing tariffs, inflation and global uncertainty.

4) What’s next: trade talks and possible relief

Economic Prosperity Deal (EPD): Earlier this year the UK and US announced progress towards lowering tariffs on cars, aerospace components and metals. However, these understandings are non-binding and not yet in force.

Implementation delays: US authorities continue to scrutinise origin criteria for UK exports, withholding exemptions pending supply-chain verification.

Outlook: Further tariff reviews are expected in the coming months, with the risk that more products could be targeted.

5) Recommendations for UK engineers and firms

Audit product materials: Map supply chains and document steel/aluminium content to support compliance.

Work with buyers: Coordinate closely with US partners to streamline customs clearance.

Diversify markets: Develop opportunities in Europe and Asia to offset weaker US demand.

Stay proactive: Track policy updates and be ready to act quickly if exemptions or reliefs are introduced.

Conclusion

The August 2025 tariff expansion is one of the most significant disruptions to UK–US trade in decades. For engineers, plant managers and exporters, the task is twofold: absorb the immediate financial shock while building long-term resilience.

Success will depend on rigorous compliance, market diversification and strategic advocacy—essentials for surviving, and growing, in a new trade reality.

Sources

The Times – Trump shocks UK business with stealth tariffs on 400 products
The Times – JCB warns US tariffs will cost “hundreds of millions”
Reuters – UK factories report new downturn and weak outlook, CBI says
Financial Times – US tariffs threaten lay-offs at UK luxury car plants
The Guardian – UK factories suffer fastest export slump in five years

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