Lord Peter Mandelson, the UK’s ambassador to the United States, has stated that the 10% baseline tariff on most UK goods imported into the U.S. is likely to remain in place. While there may be opportunities for sector-specific negotiations, particularly in technology, the general tariff is expected to persist.
Tariff policy remains unchanged
In an interview with The Sunday Times, Lord Mandelson expressed that the 10% universal tariff is “here to stay.” He acknowledged that while there is scope for discussions in different sectors, the overarching tariff policy is unlikely to change in the near future.
Ongoing trade negotiations
Despite the general tariff, there have been some reductions in specific areas. A recent trade deal between the UK and the U.S. has led to lowered tariffs on car and aerospace imports. However, uncertainties remain regarding steel tariffs, which may continue at 25% or potentially increase to 50%.
Trump’s upcoming state visit
President Donald Trump is scheduled for a second state visit to the UK in September. Lord Mandelson anticipates a warm reception, noting that President Trump admires Britain and trusts Prime Minister Keir Starmer. The timing of the visit, during the parliamentary recess, is seen as a strategic move to avoid potential protests or boycotts.
Implications for UK businesses
The continuation of the 10% tariff presents challenges for UK exporters, particularly in sectors not covered by recent trade agreements. Businesses may need to adapt to the ongoing tariff structure and explore opportunities within the scope of sector-specific negotiations.
REFH – Newshub, 13 July 2025
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