“Brexit Boosts UK: Independence Brings Competitive Edge Over EU”
Half the rate (10%) of EU’s tariffs (20%), some major UK exports exempted
https://www.youtube.com/watch?v=yiTFPN6SZsU&t=605s
I provide an analysis you are less likely to see on the BBC, Sky News, and others.
Yesterday in the Rose Garden, President Trump delivered a blunt message to the European Union:
“They’re [the EU] ripping us off. It’s so sad to see. It’s so pathetic.”
Apparently, the EU has been cast as the villain in this trade drama — complete with a sneer and perhaps a monocle. Following this statement, the administration announced a 20% tariff on all EU goods, with some products facing even higher rates. It’s almost as if the U.S. decided to play “The Price is Right,” except every EU product got the dreaded buzzer sound.
In contrast, the United Kingdom pulled off what can only be described as a diplomatic Houdini act. British goods were largely subjected to only a 10% tariff, with key sectors like the pharmaceutical industry entirely exempt. While the 10% rate isn’t zero, it’s close enough to make the UK feel like it just won a consolation prize on a game show — “Congratulations! You’re not hated as much!”
The EU, however, bore the brunt of what President Trump termed a “Retaliatory Tariff,” placing them second only to China among major trading partners targeted by the U.S. The President displayed a list ranking countries, which felt oddly like a roast session. He commented negatively on most, until he reached the UK. At that point, his tone shifted, and he simply remarked:
“United Kingdom, 10%, so we’ll go 10%.”
A 10% tariff gives the UK a competitive edge over the EU — like showing up to a sword fight with a lightsabre. Sure, the potential could have been even greater, but hey, let’s not get greedy. Meanwhile, British media outlets like the BBC and Sky News seem more focused on pointing out the downsides of the UK’s low tariff rate, as if they’re trying to find the one cloud in an otherwise sunny day. My research, however, has uncovered some fascinating nuggets that they haven’t quite gotten around to reporting — maybe they were busy debating tea brands instead.
The US Trade Representative on trade with the UK
The following comes from an official US Administration document, released on Monday (31 Mar 2025), which highlights the UK’s tariffs inherited from the EU and not repealed by post-Brexit governments.
This document was prepared by the Office of US Trade Representative specifically for this review of new tariffs. It discusses the largest export markets for the United States, covering nearly 60 trading partners and looks at all forms of trade barriers.
The EU section in this document is a hefty 34 pages long — practically a novel — meticulously outlining all the trade practices the US finds unreasonable. Meanwhile, the UK section is a breezy 5 pages, almost like a pamphlet. It even throws in a few compliments for the UK, as if to say, “You’re doing okay… but don’t get too comfortable.”
“The UK has some high tariffs that affect U.S. exports, such as rates of up to 25.0% for some fish and seafood products, 10.0% for trucks, 10.0% for passenger vehicles, and up to 6.5% for certain mineral or chemical fertilizers.”
These tariffs were carried over from the UK’s membership in the EU and have not been repealed since the UK gained independence. While the US administration does not explicitly state this, a section in a document from the US trade department advising the President’s decision raises the question of how that decision regarding the UK might have differed if the UK government had revoked these inherited EU tariffs. Even more concerning, the document highlights specific issues about the UK’s ongoing alignment with EU policies.
“Following withdrawal from the EU, the UK transposed existing EU technical regulations into UK law in 2021, thus creating close initial alignment between UK and EU technical regulations and requirements.
“Several specific trade concerns outlined in the technical barriers to trade (TBT) section of the EU Chapter in this National Trade Estimate Report therefore remain with respect to the UK. Additional divergences between the two regimes will likely continue because changes to some EU regulations have not been, or will not be, automatically reflected in the UK regulatory regime (with the exception of Northern Ireland under the Windsor Framework) and vice versa.”
It can be concluded that if the UK government had fully cut ties with the EU trade regime as planned after Brexit, the chances of dodging ‘Retaliatory Tariffs’ would have been much higher — kind of like avoiding an ex’s awkward stares by not showing up to the same party in the first place.
The response from Brussels was bitter
The response from Brussels came from EU Commission President Ursula von der Leyen in a statement which did not appear to make any attempt to sound conciliatory. It mostly aimed at deflecting attention away from the fact that the EU now faces one of the highest tariffs in the world for a major trading partner. A great deal of the statement talked about the tariffs on other countries instead. (She somehow forgot to mention Brexit Britain, on one-half of the EU’s new tariff.)
“President Trump’s announcement of universal tariffs on the whole world, including the EU, is a major blow to the world economy…. The global economy will massively suffer…. The consequences will be dire for millions of people around the globe…. Also for the most vulnerable countries, which are now subject to some of the highest US tariffs…. The tariffs will also hurt consumers around the world.”
“It will be felt immediately. Millions of [EU] citizens will face higher grocery bills. Medication will cost more as well as transportation. Inflation will go up…. All businesses — big and small — will suffer from day one. From greater uncertainty to the disruption of supply chains to burdensome bureaucracy…. And what is more, there seems to be no order in the disorder.”
Brussels reacted with sharp bitterness.
The response from Brussels, delivered by EU Commission President Ursula von der Leyen, lacked any apparent effort to strike a conciliatory tone. Instead, it seemed primarily focused on diverting attention from the reality that the EU is now subject to one of the highest tariffs globally imposed by a major trading partner. Much of the statement emphasized tariffs on other nations, notably omitting any reference to Brexit Britain, which accounts for half of the EU’s new tariff burden.
“President Trump’s announcement of universal tariffs on the whole world, including the EU, is a major blow to the world economy…. The global economy will massively suffer…. The consequences will be dire for millions of people around the globe…. Also for the most vulnerable countries, which are now subject to some of the highest US tariffs…. The tariffs will also hurt consumers around the world.”
“It will be felt immediately. Millions of [EU] citizens will face higher grocery bills. Medication will cost more as well as transportation. Inflation will go up…. All businesses — big and small — will suffer from day one. From greater uncertainty to the disruption of supply chains to burdensome bureaucracy…. And what is more, there seems to be no order in the disorder.”
This commentary underscores the profound economic, social, and political changes that have emerged in the aftermath of Brexit. Analysts have pointed to shifts in trade dynamics, labour markets, and regulatory frameworks, all of which continue to shape the UK’s trajectory on the global stage.
“The silver lining is that Brexit — which Labour ministers voted against no less than 48 times — means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.”
- Andrew Griffith MP, shadow trade secretary, 02 Apr 2025
Brexit has undoubtedly brought another significant advantage to the country, as demonstrated by yesterday evening’s events. It’s possible that President Trump interpreted the UK’s tariff — set at half the rate of the EU’s — as a deliberate signal. One can only wonder what the outcome might have been if post-Brexit governments had taken steps to further reduce or eliminate the high tariffs the UK was previously obliged to follow as an EU member. Such a move could have positioned the UK as a more attractive trading partner on the global stage, fostering stronger economic ties with major powers like the United States. Additionally, lower tariffs might have encouraged greater foreign investment and boosted domestic industries by reducing costs for imported goods and raw materials. While the current tariff adjustments have sparked interest, the opportunity for further economic reforms remains a compelling prospect for policymakers looking to capitalize on the post-Brexit landscape.
Sources: US Trade Representative/ The White House/ EU Commission
