![\"Cardboard](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/\/6a28ed0a-bc0e-4983-b92c-2f15cfba70b5.jpg\")
<\/p>\nBritish manufacturers face additional costs that could amount to hundreds of millions of pounds each year after a sharp increase in tariffs applied to finished goods exported to the United States.<\/p>\n
President Trump has added a 25 per cent tariff on hundreds of products containing steel and aluminium including construction machinery and automotive parts in exhaust systems.<\/p>\n
JCB, the Midlands-based diggers company, and one of Britain\u2019s largest private enterprises, could be one of the companies hardest hit. The energy industry has said renewables manufacturers, especially those in the wind turbine supply chain, could also be impacted as well as manufacturers of pumps and compressors, and even furniture.<\/p>\n
<\/p>\n
JCB could be one of companies hardest hit by the tariff trap<\/p>\n
Industry leaders have warned of \u201csignificant risks\u201d for British manufacturers caught up in the tariff trap and urged the government to step in. It had been assumed that tariffs between the UK and US under the Trump administration had been settled at 10 per cent.<\/p>\n
At issue is a so-called section 232 covering goods manufactured in the UK which the president extended the scope of after pressure from the American steel industry.<\/p>\n
\u201cThe action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention, supporting the continued revitalisation of the American steel and aluminium industries,\u201d Jeffrey Kessler, US under-secretary of commerce for industry and security, said.<\/p>\n
Philip Bell, the US Steel Manufacturers Association\u2019s president, said: \u201cThe steel tariffs are necessary for the national security that a strong steel industry provides. One of President Trump\u2019s signature achievements of his second term is renewing and strengthening the steel tariffs.\u201d<\/p>\n
The US market for such goods imported into the country is reckoned to be worth \u00a31.5 billion, and the new rules are affecting goods that have already been shipped. <\/p>\n
There was no immediate response for comment from JCB, owned and led by Lord Bamford, the prominent industrialist.<\/p>\n
The UK\u2019s Construction Equipment Association, however, confirmed that from August 18, new US tariffs for finished construction machinery and other key components exported from the UK fall within scope of duties on steel and aluminium<\/a>. As such UK-origin goods will be charged at 25 per cent. The tariff that non-UK exporters of such goods to the US face is at a rate of 50 per cent.<\/p>\n In addition, the association is warning that if the percentage of metal content in goods cannot be proven at the time of entry into America, US Customs will demand the payment of duty on the full value of any machine, leading to confusion and the risk of overpayment or penalties.<\/p>\n \u201cFor complex machines made from thousands of components, many sourced from suppliers who do not provide detailed material breakdowns, complying with these rules will be extremely difficult in practice,\u201d Viki Bell, the association\u2019s chief executive, said.<\/p>\n \u201cInitial analysis indicates that major UK exporters could face additional costs running into hundreds of millions of pounds each year if duties are charged on the full value of machines.\u201d<\/p>\n