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On Monday, July 28, 2025, Kire Starmer, Prime Minister of the United Kingdom, left US President Donald Trump, ahead of the meeting on the Turnberri Golf Ternberries, Scotland.
Tolga Akmen/EP/EP/Bloomberg Vitty Images
Since world leaders and economists across Europe digest the news of the EU-SSH trading agreement, some experts said CNBC that although it may be a bad news for the block, a deal may serve as an unexpected incentive for the UK
The European Union faces a higher tariff by 15% on its goods imported in the US compared to 10% College The UK agreed.
“Theoretically, the UK benefits,” said CNBC Philip Show, Chief Economist Investec.
“The new EU fare is 15% means that the UK is relatively cheaper to the United States, which can increase British trade from the US, as US companies buy goods in Britain rather than the EU,” he explained.
Due to the decrease in tariff goods, the tariff rate will also be cheaper, that is, they may prefer British products over the EU, Alex Altman, partner and head of the German table Lubbock Fine LLP, offered in a note published shortly after the transaction.
“Tariffs in the UK in the UK offer a serious incentive for EU companies to move some production bases to the UK or expand existing facilities in the UK,” he added.
Altman explained that low-income manufacturers could find the idea of moving to the UK to avoid further compression on these margins, Altman explained, noting that there is a stock of production capacities due to Brexit.
“The UK can be a great indirect winner of this agreement,” Altman added.
But the benefits for the UK are not only related to the low rate of the country. Indeed, the EU, which is able to provide a 15% fee that is much lower than 30%, which the unit threatened US President Donald Trump may also become positive for the UK, Shaw Investec reports.
“The EU escaped from the possible great recession with a tougher (ie 30%) tariff regime and possibly a number of revenge measures between two trading blocks. Here the UK is favorable from its main trading partner, which can lead to a recession that can reduce UK’s exports to the EU.
How likely is that in the UK can be materialized?
The EUS-WSH, which reached the agreement, also prevented the potential impact, said the BETH MCCALL, the International Dentons CNBC lawyer.
“If the US started 30% of the EU -EU tariffs, UK goods with a 10% tariff, which in most circumstances is paid by American importers, may be much more attractive,” she said.
McCall noted that the expected difference in the base tariff, which is only 5%, can still make some UK goods more attractive. However, she noted: “It will take time when the existing contracts are over, and US importers are looking for imports from countries that carry a smaller tariff.”
Questions about the terms of tariffs that are felt worldwide have been raised, often discussed by the issue. The companies have already stated that the tariffs are expected to weigh on their profits, and there were broad warnings on how duties could affect economic growth.
But since many details of the trade agreements are not yet ironed, their accurate exposure is still unclear. Some effects may also take time to feel, for example, the cost of consumers can only be materialized after a while.
Ultimately, both the UK and the EU are now facing a more difficult situation, McCal said.
“Will there be a new rate of 10% or 15%, British and EU -Business will still face much higher tariffs in the US export than three months ago,” she said.
