Britain signalled on Friday that it expects the favourable tariff treatment it had with the United States to remain in place after the U.S. Supreme Court found that President Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose wide-ranging reciprocal tariffs.
In April of last year, the Trump administration imposed "reciprocal" tariffs on goods arriving from a range of trading partners, the United Kingdom among them, invoking IEEPA as the legal basis. Under that measure the baseline tariff facing Britain was 10%.
Friday's ruling concluded that the president's use of IEEPA in this way went beyond the powers granted, a decision that removes the legal foundation for those sweeping tariffs. However, the court's finding will not alter most bilateral trade between the United States and the UK that is covered by a separate U.S.-UK tariff agreement. That deal relies on different U.S. authorities and focuses largely on sector-specific duties rather than the blanket reciprocal tariff structure.
A British government spokesperson emphasised London believes its preferential position will endure. "The UK enjoys the lowest reciprocal tariffs globally, and under any scenario we expect our privileged trading position with the US to continue," the spokesperson said, adding that government officials would engage with the U.S. Administration to determine how the ruling affects tariffs for the UK and other countries. The spokesperson also said the government would support British businesses as further details emerge.
Representatives of the business community cautioned that the court decision leaves practical questions unresolved. William Bain, head of trade at the British Chambers of Commerce (BCC), said the ruling did "little to clear the murky waters for business." He noted that it remains unclear how U.S. companies might reclaim import levies that were paid under the reciprocal tariff regime and whether British firms would be eligible for any share of refunds.
Bain reiterated that reducing tariffs remains a priority for the UK. He pointed to an agreement to lower steel tariffs under the U.S.-UK tariff arrangement, noting that the measure has not yet been implemented. "Any competitive advantage that we can secure is likely to help boost our exports to the single country, globally, we do most trade with," he said.
For now, London will await further discussions with Washington and additional guidance on administrative steps required to unwind or adjust duties where appropriate, while supporting domestic businesses as the implications for refunds and sectoral measures are clarified.