Last night, President Trump announced that a 10% tariff will be applied to all UK goods entering the US from midnight on 5th April, with a flat 25% tariff specifically on automotive exports. This is a significant concern for the British luxury sector, as the US is our most important single market, accounting for 22% (£12.3bn) of total exports. American consumers deeply value the creativity, craftsmanship, and heritage of British luxury goods, and these tariffs not only create barriers for UK businesses but will ultimately penalise US consumers, who see the ‘Made in the UK’ nature of these products as essential and will likely bear the brunt of rising costs.
Since the US election last November, Walpole, in consultation with members, has raised concerns about the damaging effects of tariffs on luxury goods – both with the UK government and the EU through our work with ECCIA, as well as with key stakeholders in the Washington DC.
We were reassured by our own government’s non-retaliatory stance when steel and aluminium tariffs were announced in February and Walpole supports the current diplomatic approach – prioritising engagement over retaliation – as the right way to safeguard trade and jobs.
In the coming days and weeks, we will closely monitor the impact of these tariffs on the luxury sector, remaining in constant contact with the Department for Business and Trade (DBT). We will also issue regular briefings for our members as the situation develops.
Additionally, we are working with ECCIA to assess the impact on the EU, now facing 20% import tariffs into the US, given our interconnected luxury supply chains, and liaising with fellow trade associations and sector bodies to understand the broader implications and coordinate our response to government.
To strengthen our response, we ask that you share:
Your insights will help us provide real-time feedback to DBT and maintain momentum in advocating for the sector. Please feel free to contact me directly or email our policy team at [email protected].
Image credit: White House
