For a brief four days in April, Brexit supporters clutched at what looked like a long-awaited win. The US slapped a 10% tariff on UK exports – while EU goods faced a harsher 20%. Cue celebration.
But the party didn’t last long. Within a week, President Trump brought the EU rate back down to match the UK’s 10%. The so-called ‘Brexit benefit’? Gone in a puff of hot air.
📦 It’s all in what we sell – and we’re selling the wrong stuff
New data from Capital Economics poured cold water on hopes of post-Brexit perks. Thanks to the types of goods the UK sends across the pond, we’re now paying more in tariffs than the EU.
While Trump exempted industries like pharmaceuticals and electronics – areas where the EU trades more – UK exports like steel and cars weren’t so lucky. Both still face eye-watering 25% tariffs.
That’s a big deal. These are major UK exports. And they’re getting hammered.
💸 Numbers don’t lie: we’re paying more
The average tariff rate on UK goods going to the US is now 11.6%. The EU? Just 9.5%. That’s thanks to more favourable trade profiles and exemptions on vital goods.
Unless Trump brings back the full 20% tariff for the EU – something he’s hinted might happen by July – the UK stays worse off.
Even if he does, the EU has retaliatory options up its sleeve. Britain? Not so much.
🧯 Brexit benefit? More like Brexit backfire
The dream of cutting loose from the EU to strike better deals isn’t quite going to plan. At least not in this case. With UK exports paying more at the American border, the reality is this:
Brexit isn’t saving us money on trade. It’s costing us.
You may also like: Reform slammed for ‘sucking up to Moscow’ with latest policy
