Dorplay Jordan
Business Reporter, BBC News
The United Kingdom has exported nearly 60 billion pounds to the United States in the United States last year, making it one of the most important markets for thousands of British companies.
After President Donald Trump announced a 10% rate on almost all British products, we talked to companies of some of the largest British exporters to find out what it could mean for them.
Food and drinks: “We have fewer orders than normal”
Joe & Seph
Adam Sopher of Joe & Seph says that the United States is an important market for the popcorn company
The British food and drinks industry exports a few billion pounds of goods in the United States each year, satisfying the taste of Americans for specialized products such as smoked salmon, Scottish whiskey and craft cheeses.
Adam Sopher, co-founder and chief executive officer of Joe & Seph, the London-based luxury popcorn manufacturer, said the simple pricing spectrum had already affected the company.
American retailers generally place their orders for Christmas at the start of the year, but it had much fewer orders than normal, because the retailers are waiting to see what is going on.
Joe & Seph’s achieved 8 million pounds Sterling sales last year, including 2% at 3% of the United States. “So it’s not huge,” said Sopher. “But the United States is the largest popcorn market in the world, so we had planned that a large part of our growth would come from there.”
As a result, he says, he now plans to focus on the growth of his exports to the Middle East and Asia.
However, the 10% price was not as bad as it was waiting for it and American importers had to pay a 5.8% rate on Joe & SEPH goods when they reach American ports.
“So what happened is that we are going to go from 5.8% to 10% as opposed to zero to 10%,” explains Mr. Sopher. It is also lower than the new American rates taken from other countries, such as the 20% tax on the European Union.
“Ironically, it could be a good thing,” he said. “These retailers who would have been from Europe could now say” in fact, we will buy more in the United Kingdom “.
Chemicals: “We hope there is an opportunity”
Adrian Hanrahan by Robinsons Brothers hopes to win back American customers
For something that is not visible to the naked eye, organic chemicals are a huge American export for the United Kingdom, totaling nearly 3 billion pounds Sterling last year.
They are used in a massive range of industries, ranging from food, including makeup through engines and agriculture.
Rather than being afraid of the American price, Robinsons Brothers believes that this can help the company with organic chemicals based in West Bromwich to fight against American rivals abroad.
CEO Adrian Hanrahan said: “We have provided much more in the United States, but China and India eliminated us because of the very low prices.”
According to Trump’s new regime, imports from China face a rate of 34% while Indian products will be taxed at 27%. Robinsons Brothers Chemicals is already taxed at 6% when they reach the United States
Mr. Hanrahan says he is still trying to nail whether the new American 10% price on British products means that US customers from Robinsons Brothers will pay 4% or a total of 16%.
“Anyway, it’s much less than China or India will see going to the United States,” he said. “So I really hope and I see an opportunity for us here in an area.”
He said that since January, the company has received more requests from the United States, including two customers Robinsons has lost five years ago “at great cost”.
Currently, Robinsons Brothers derives between 1.5% and 2% of the total sales – which reached 24 million pounds Sterling last year – from America.
This “does not seem much” said Mr. Hanrahan but they are high margin products.
There are, of course, the concerns that rival countries should have to pour products formerly intended for the United States on other markets, such as the United Kingdom which, in turn, could reduce interior prices.
Mr. Hanrahan says: “I hope the British government is preparing for this and puts something in place to alleviate any form of product discharge in the United Kingdom and the EU.”
Aircraft: “ it’s as clear as the mud ”
Sebastian
DPS designs Sebastian Down said the United States had to bring more clarity
British exports to the United States linked to planes totaled 2.2 billion pounds Sterling in 2024, according to official figures.
DPS conceptions contribute to a small part – for this industry. The forest of the deanery based on metallic molds used to create plastic sections of plane seats.
The United States is the largest DPS growth market. About £ 150,000 in sales come directly from the United States out of a total of 3 million pounds sterling.
The director general of company engineering, Sebastian Down, said that the company will negotiate with its customers “to see if we can share the pain of the new tariffs of 10% – once it has deciphered what they apply.
“The amount of details are thin of the paper,” he said.
DPS Designs has already had to fight against the ambiguous language used by the White House around prices, after Trump announced 25% of commercial prices on imports of steel and aluminum in the United States. The company uses aluminum to make its molds.
“There was no one to whom you could talk to, so it was up to the fact that I went to the American department of any website, trying to look at a lot of details that did not exist,” he said.
In the end, the aluminum price does not apply to its business. But the new 10% price criteria are not clear either. Does, for example, apply to parts that make up a product or only to the finished article itself?
“It’s as clear as the mud,” said Down.
Vehicles: “We may have to increase prices”
Maeving
The American British manufacturing car market is a huge consequence for the British economy. Last year, the United Kingdom exported 9 billion pounds sterling to America.
The sector was already in shock from the 25% announced price announced by Trump on cars and light vehicles.
Mike Hawes, director general of the Society of Motor Manufacturers & Traders, said: “These tariff costs cannot be absorbed by manufacturers, thus hitting American consumers who can face additional costs and a reduced choice of emblematic British brands.”
With Trump’s announcement on Wednesday 10% of American taxes on almost all British imports, the net will now widen to include the tastes of the manufacturer of electric motorcycles Maeving.
Seb Inglis-Jones, co-founder and co-chief of Coventry, affirms that the sales of the United States “constantly evolving”. Last month, for example, 68% of sales came from America, but generally, the United States represents approximately 40% of its annual turnover of 6 million pounds sterling.
Inglis-Jones says that the United States has helped to counterbalance a less than optimistic economic perspective in other key markets in Maeving such as the United Kingdom, France and Germany.
“In the United States, there is just more available income and therefore with a slightly more discretionary purchase like ours, a slightly more expensive British electric motorcycle, the Americans are much more able to spend this money.”
He said that Maeving recently increased prices in the United States, not as a preventive move before prices, but because the cost of business in the United States had increased.
Will the company now fall prices?
“We have not gone so far,” said Inglis-Jones. “I think we are more careful, as a young EV company (electric vehicle), on growth and assuring us that the price is good for the American customer.
“If we cannot climb, we will have to put the prices back.”
