**London**: Since early April 2025, the US imposed universal 10% import tariffs, prompting the UK to consider retaliatory tariffs and initiate negotiations for an economic partnership. techUK highlights risks to the tech sector amid global trade tensions, actively engaging in government consultations and strategy formulation.
Since early April 2025, significant developments have unfolded regarding the imposition of tariffs by the United States and their subsequent impact globally, including on the United Kingdom.
On April 2, 2025, then-President Donald Trump announced a sweeping 10% tariff on all imports entering the US, with the tariffs coming into effect on April 5. This move was notable for its universal application across imports, diverging from previously targeted tariffs. However, alongside this announcement, additional “reciprocal” tariffs aimed specifically at certain countries were paused for a 90-day period, suggesting room for negotiation or further assessment.
In direct response to this US policy shift, the UK government promptly initiated a consultation process with British businesses to evaluate the potential consequences of instituting retaliatory trade measures. As part of these efforts, the government published a detailed list of American products, highlighting those that could be subject to tariffs should the UK decide to take countermeasures. This transparent approach aims to engage various stakeholders in shaping an appropriate government strategy.
Parallel to these defensive steps, the UK has commenced negotiations with the United States seeking to forge an economic partnership agreement. Such an agreement could play a crucial role in mitigating the new US tariffs, either by reducing or completely removing the levies imposed on UK goods exported to the US. The exact terms and outcomes of these discussions remain under active development.
Industry-specific analysis has been emerging concerning the effects of these trade dynamics. According to insights shared by techUK, a leading representative body for the UK’s technology sector, while the direct impact of tariffs may be less pronounced on the predominantly services-based tech industry compared to goods-focused sectors, the broader economic instability poses significant risks. The UK tech sector’s deep integration within global markets means that trade tensions, particularly between major economic partners like the US and the European Union, can disrupt the stable and rule-based international trading environment crucial for fostering growth and innovation.
techUK is proactively monitoring these international developments and is engaged in formulating a strategic response. The organisation is drafting a detailed position paper to communicate its stance on the UK government’s consultation regarding possible retaliatory actions. Furthermore, techUK is preparing a comprehensive vision document outlining proposals for the desired framework of a UK-US economic partnership. Both documents are being circulated among member organisations for input and refinement.
For stakeholders within the UK technology industry seeking more detailed information or wishing to contribute views, techUK has provided direct contact through [email protected], demonstrating its commitment to inclusivity and active dialogue during this period of evolving trade policy.
The Wired-Gov publication is reporting these developments are subject to continuous updates as new announcements are made, underlining the fluid nature of international trade negotiations and their cascading effects on various sectors within the UK economy.
Source: Noah Wire Services
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