(qlmbusinessnews.com . Mon 23rd Feb, 2026) London, UK —
Navigating the New Tariff Terrain: Trump's 15% Levy Leaves Businesses Reeling
UK and International Businesses Face Uncertainty After Trump's Tariff Hike
In a move that has sent ripples of uncertainty through the global market, US President Donald Trump's recent amendment to import tariffs has left businesses and consumers bracing for impact. Despite a Supreme Court decision barring the use of the 1977 International Emergency Economic Powers Act for imposing tariffs, Trump has leveraged Section 122 of the 1974 Trade Act to introduce a preliminary 10% tariff on goods from all countries, which he later declared would surge to 15% via social media.
This unexpected hike in tariffs has unsettled countries, particularly the UK and Australia, which had believed they secured more favourable terms, negotiating tariffs down to 10%. The ambiguity surrounding future trade relations and potential new tariffs on previously exempted goods has businesses concerned, according to William Bain, head of trade policy at the British Chambers of Commerce (BCC). “There's a general fatigue over the constant shifts and the absence of clear, definitive guidance on tariff rates, impacting the pricing and competitiveness of goods in the American market,” Bain lamented.
One major point of contention is the clarity over existing trade agreements. Following Trump's initial announcement of what had been dubbed “Liberation Day” tariffs, numerous nations had brokered lower tariffs for their exports. However, recent statements suggest these countries might now be subject to the global 15% tariff, undermining established agreements. The US has yet to clarify its stance fully, leaving nations in the dark about their future trading relationships.
This ongoing saga has introduced overwhelming challenges for businesses and consumers alike. The British Chambers of Commerce projects that the tariff increase to 15% could ramp up costs on UK exports to the US by £2-3 billion, affecting around 40,000 UK businesses. The surge in export costs is anticipated to influence a range of sectors significantly, particularly those dealing in food and drink, textiles, industrial goods, and electrical items. Tim Doggett, chief executive of the Chemical Business Association, highlighted that these added expenses are likely to be passed on to consumers, driving up prices and inflating costs of living.
In the wake of the Supreme Court ruling against Trump's use of reciprocal tariffs, questions have emerged regarding possible refunds for the estimated $130 billion in tariffs paid since the policy's inception. The process for reclaiming these funds remains uncertain, with many firms already pursuing legal action to secure refunds, an endeavour that could take years to resolve.
Amid concerns about additional tariff impositions, the administration has made exemptions for crucial economic inputs like critical minerals, certain agricultural products, and energy resources. However, the threat of further tariffs looms large, with the potential for sector-specific tariffs under Section 232 of the Trade Expansion Act of 1962, as pointed out by US economist Bernard Yaros.
The ultimate burden of these tariffs falls on a mix of exporting businesses and US consumers, with a significant portion of the costs likely being absorbed by the latter. Research indicates that US consumers have been shouldering a considerable share of the tariff costs, with prices on imported goods climbing as a result.
This heightened tariff landscape threatens to not only disrupt international business operations but also dampen consumer choice and inflate prices further. As companies consider diversifying their trade focus towards burgeoning markets in Europe and the Indo-Pacific, the lasting effects of these trade policy shifts continue to unfold.
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