USA Tariffs Begin to Bite From Today 1 November

1st November 2025

As of November 2025, most UK exports to the United States face a blanket 10% tariff, with some sectors—like steel, aluminium, and automobiles—subject to additional duties of up to 25%.

These tariffs were reinstated in April 2025 and remain in effect despite a new economic deal.

Here's a breakdown of the current situation.....

In April 2025, the U.S. government imposed a 10% tariff on all UK exports, citing trade imbalances and strategic concerns. This move came as part of a broader tariff overhaul that also targeted the EU (20%) and China (54%).

While the UK and U.S. signed an Economic Prosperity Deal (EPD) in May 2025 to ease some trade tensions, the blanket 10% tariff remains in place for most goods.

Certain sectors face higher tariffs

Steel and aluminium products: Subject to a 25% tariff, separate from the general 10% rate.

Automobiles and auto parts: Also hit with 25% tariffs, making UK car exports particularly vulnerable.

Pharmaceuticals, semiconductors, copper, lumber, and energy products: These are exempt from the additional 10% tariff, though they may still face standard U.S. import duties.

The impact has been significant. UK goods exports to the U.S. dropped by 13.5% in Q2 2025, hitting a three-year low. Businesses in sectors like food, drink, and chemicals have reported higher costs and reduced competitiveness.

While services exports remain strong, manufacturers are feeling the pinch.

Despite the new EPD, uncertainty remains high. Many UK firms are re-evaluating supply chains, exploring alternative markets, or lobbying for sector-specific exemptions.

The UK products most affected by current U.S. tariffs are steel, aluminium, automobiles, and food and drink exports. These sectors face tariffs of up to 25%, while most other goods are subject to a blanket 10% duty.

A closer look at the impact

Steel and Aluminium are among the hardest hit. These materials face a 25% tariff, which has significantly disrupted UK exports to the U.S. British steelmakers have reported falling orders and rising costs, with some warning of potential job losses if the tariffs persist. Aluminium producers are also struggling to stay competitive, especially against non-tariffed suppliers from other regions.

Automobiles and Auto Parts also face a 25% tariff, making UK-made vehicles less attractive to American buyers. Luxury car brands like Jaguar Land Rover have seen reduced demand, and smaller manufacturers are rethinking their U.S. strategies. The added cost has forced some firms to consider relocating production or shifting focus to other markets.

Food and Drink Exports—especially whisky, cheese, and specialty items—are subject to the 10% blanket tariff, but the impact is still significant. The U.S. is the UK's largest export market for whisky, and distillers have warned that even modest tariffs can erode profit margins and reduce competitiveness. Some producers are absorbing the costs, while others are raising prices or cutting back on marketing.

Pharmaceuticals, semiconductors, copper, lumber, and energy products are currently exempt from the additional 10% tariff, though they may still face standard U.S. import duties. These exemptions offer some relief to high-tech and industrial exporters.

Overall, the tariffs have created uncertainty and increased costs for UK businesses. While some sectors are adapting through supply chain shifts or pricing strategies, others are lobbying for exemptions or trade relief.

Whisky
Scotland's whisky industry in 2025 is facing a mix of challenges and opportunities, with export pressures, tariff threats, and domestic tax concerns balanced by strong global demand and innovation in premium releases.

Scotch whisky remains one of Scotland’s most iconic and economically vital exports. In 2024, the industry shipped over 1.4 billion bottles to more than 160 countries, contributing £5.4 billion in export value and supporting over 66,000 jobs across the UK. However, 2025 has brought turbulence.

One major concern is the 10% U.S. tariff on Scotch whisky, which First Minister John Swinney is actively lobbying to reduce. He’s met with President Trump and U.S. Ambassador Warren Stephens multiple times this year to push for a deal that would ease trade barriers. The U.S. remains a key market, and even modest tariffs can dent margins and slow growth.

Domestically, the industry is bracing for the Autumn Budget, with fears that Chancellor Rachel Reeves may raise alcohol duties. The Scotch Whisky Association and unions like GMB Scotland have urged the government to freeze spirits duty until 2029 to protect jobs and maintain competitiveness.

Despite these pressures, the industry continues to innovate. The 2026 edition of the Malt Whisky Yearbook highlights a surge in age-statement bottlings and independent releases, reflecting consumer appetite for premium and rare expressions. Distilleries like Ardnahoe on Islay are gaining attention for their quality and character, even as overall export volumes dip slightly.

Looking ahead, the Scotch whisky market is forecast to grow from $56.5 billion in 2025 to $70.2 billion by 2030, with the Middle East and Africa emerging as fast-growing markets. Tourism also remains a bright spot, with distillery visits and whisky trails drawing global interest.