Keir Starmer, British Prime Minister, Left, and US President Donald Trump preceded a meeting at the Trump Turnberry Golf Course held in Turnberry, Scotland on Monday, July 28th, 2025.
Tolga Akmen/EPA/Bloomberg via Getty Images
As European global leaders and economists digest the news of the EU-US trade agreement, some experts told CNBC that while this may be bad news for the Bullock, the deal could be an unexpected boost for the UK.
The European Union faces a tariff rate of 15% on goods imported into the US compared to the 10% collection agreed by the UK.
“In theory, the UK’s interests,” Investec’s chief economist Philipshaw told CNBC.
“The new 15% EU tariff means that the UK has become relatively inexpensive to export to the US. This could boost UK trade with the US as American companies buy goods from the UK rather than the EU,” he explained.
UK products are also cheaper for US consumers due to their low tariff rates. This means that they may favor British products over Alex Altmann, who is manufactured in the EU, and Alex Altmann, head of the German desk at Lubbock Fine LLP.
“UK’s lower US tariffs provide a great incentive for EU companies to either move some of their manufacturing bases to the UK or expand existing UK facilities,” he added.
EU-based manufacturers with particularly low profit margins can find the idea of moving to the UK, and are attractive to avoid further squeezing those margins, Altmann explained, noting that the UK has spare manufacturing capabilities for Brexit.
“The UK could be a major indirect winner of this agreement,” Altman added.
But the benefits to the UK are not only linked to lower country tariff rates. In fact, the EU was able to secure a 15% collection. This could also be positive for the UK, according to Investec’s Shaw, which is far lower than the 30% that US President Donald Trump threatened by the Bullock.
“The EU has escaped the possibility of a major slump from the more troublesome (i.e. 30%) tariff regime and perhaps a series of retaliation measures between the two trading blocs. Here, the UK has benefited from a major trading partner that may have eased the UK’s decline in exports to the UK,” he said in a written comment.
How likely is the UK to make it?
Dentons’ international trade lawyer, Beth McCall, told CNBC that the agreement reached EU-US is also hampering potential impacts.
“If the US had gone through 30% tariffs on most EU goods, UK goods with 10% tariffs paid by US importers in most circumstances may look more appealing,” she said.
McCall noted that the expected difference in baseline tariff rates, which amounts to just 5%, could make some UK products more attractive. But she noted, “it will take longer as existing contracts end and US importers search for imports from countries where lower tariffs are held,” she noted.
Questions have been raised about the time frame for the impact of tariffs felt around the world. Companies have already flagged tariffs that they are expected to weigh revenues, and there are extensive warnings about how their duties will affect economic growth.
However, as many details of the trade agreement have not yet been resolved, their exact and precise impact is still unknown. It may take some time to feel some of the effects. For example, rising consumer costs can only happen after a while.
Ultimately, both the UK and the EU are currently facing more challenging environments, McCall said.
“Whether the new rate is 10% or 15%, UK and EU businesses still face much higher tariffs when exporting to the US than they were three months ago,” she said.
