Keir Starrer, British Prime Minister, Links, and US President Donald Trump, before being hit on Monday, July 28, 2025, in Turnberry, Scotland, on the Trump Turnberry Golf Course, Scotland.
Tolga Akmen/EP/EP/Bloomberg Vitty pictures
Since the leaders and economists of the world all over Europe digest the news of the EU-US trade agreement, some experts said CNBC that it could be bad news for the block that could serve as an unexpected thrust for Great Britain
With a higher tariff set of 15%, the European Union is exposed to its goods imported into the USA compared to the 10% tax, which has approved the United Kingdom.
“Theoretically, Great Britain benefits,” Philip Shaw, chief economist at Investec, told CNBC.
“The new EU tariff of 15% means that British exports to the United States have become relatively cheaper, which could strengthen British trade in the United States if American companies buy goods from Great Britain and not from the EU.
In British goods, for US consumers would also be cheaper due to the lower tariff rate, which means that they prefer British products to the EU, Alex Altmann, partner and head of the German switch of Lubbock Fine LLP, published in a note published shortly after the EU contract was announced.
Europe is based on “unbalanced” US trade agreements
“The lower US tariffs of Great Britain offer EU companies a great incentive to shift some of their production base in Great Britain or to expand their existing institutions in Great Britain,” he added.
In particular, manufacturers of EU with low profit margins could find the idea of moving to Great Britain to avoid another squeeze on this margin, Altmann explained and noted that Britain has the replacement manufacturing capacity due to Brexit.
“Great Britain could be a great indirect winner of this agreement,” added Altmann.
However, the advantages for Great Britain are not only connected to the country's lower tariff rate. In fact, the EU that managed to secure a 15% tax, which was threatened with the 30% with which the block of US President Donald Trump was threatened, was also positively threatened by Investrec for Great Britain.
“The EU has escaped from a possible large downturn from a numerous (ie 30%) tariff regime and possibly a series of retaliation measures between the two trade blocks. Here the United Kingdom benefits from its large trading partner, who dismissed a recession that could have led to a decline in British exports to the EU,” he said in written comments.
How likely can the thrust be materialized in Great Britain?
The EU-US, which has achieved an agreement, has also hindered the potential effects, Beth McCall, an international trade lawyer at Dentons, told CNBC.
“If the United States had gone against most EU goods with 30% tariffs, British goods with a tariff of 10% that was paid by the US importer would have appeared much more attractive,” she said.
McCall noted that the expected difference in the tariff base tariff rate, which is only 5%, could still make some British goods more attractive. However, she noticed: “This will take time to see existing contracts come to an end, and the US importers are looking for imports from countries that wear a lower tariff.”
Trump's visit to Scotland opens the door for Great Britain to join some unfinished shops
Questions about the time frame were raised on the effects of tariffs around the world that were often discussed. Companies have already stated that the tariffs will be docked off, and there were widespread warnings about how the tasks could affect economic growth.
However, since many details of the trade agreements still have to be ironed out, their exact effects are still unclear. Some of the effects can also take time to feel, for example rising costs for consumers may only be after a while.
Ultimately, both the UK and the EU are now exposed to a more difficult environment, said McCall.
“UK and EU companies will still be exposed to 10% or 15% when exporting to the United States is still much higher than three months ago,” she said.
Comments are closed.