The US has proposed new tariffs of 10% to 12.5% on imports from dozens of trading partners, including the UK and the EU, as part of a wider move linked to concerns over forced labour in global supply chains.
The proposals, reported by the BBC, follow a US investigation into 60 trading partners and whether they have taken sufficient action to prohibit or enforce rules against goods made wholly or partly with forced labour. The tariffs have not yet been enforced and would still need to go through a formal process before being applied.
For UK construction equipment manufacturers, the immediate impact is not yet clear, but the development adds to an already complex US trade picture. It follows separate changes to Section 232 tariffs on steel, aluminium and copper, where the UK position appears to be unaffected.
David Waine, Construction Equipment Association (CEA), Trade Advocate, said: “There are some cautiously positive points in the latest Section 232 tariff adjustment. The UK position appears to be unaffected, while several other trading partners, including the EU, have seen an improvement in their position.
“For the UK construction equipment sector, the direct impact appears limited, with no material change to the UK’s current position. The UK still retains a competitive advantage over some markets facing higher tariff rates, while the EU’s move into line with the UK should help ease pressure on European manufacturing groups and wider supply chains.
“That matters because many CEA members in the UK are part of wider European groups, with headquarters, manufacturing operations or supply chains across Europe. Any easing of pressure on those wider group structures may help support confidence and future investment decisions.
“That said, the wider US trade environment remains complex. Separate proposals linked to forced labour enforcement will also need careful monitoring, particularly for manufacturers with international supply chains.
“CEA will continue to monitor developments closely and keep members informed where there is a direct impact on the UK construction equipment sector.”
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US announces new tariffs over forced labour concerns - BBC News