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What 'America's First Trade Policy' Executive Order means for UK-US trade?

Writer's picture: GMCCTradeteamGMCCTradeteam

On January 20, 2025, President Donald Trump issued the "America First Trade Policy" Executive Order, signalling a renewed focus on reducing trade deficits and protecting U.S. economic interests. This policy mandates comprehensive reviews of existing trade agreements and practices, aiming to identify and address imbalances and unfair practices, outlining a significant shift in US trade policy going forward.


Some of the key aspects of this new policy include the focus on national security as part trade policy. Whilst there was no immediate tariffs announcement, the order directs the U.S. Department of Commerce to investigate the causes of persistent trade deficits and recommend appropriate measures, which may include global supplemental tariffs which will stack up on top of existing duties. While the initial focus appears to be on countries with substantial trade surpluses with the U.S, the UK must remain vigilant. Also worth mentioning, the focus of this investigation is goods and not services, where the US has a big USD$300 bn in surplus.


As mentioned in earlier blogs, for the United Kingdom, this new policy introduces both challenges and opportunities. The US remains as one of the UK’s top trading and investing partners, and this is not different for Greater Manchester. So, whilst tariffs are not being implemented straight away, the America First Trade Policy certainly signals these may come sooner rather than later, and thus, both UK government and traders must prepare now.


Another area the Executive Order calls is for the review of unfair trade practices by other countries, which could lead to the imposition of tariffs or other remedial actions. The UK must assess its trade practices to ensure compliance and avoid potential conflicts. The establishment of an External Revenue Service to collect tariffs and duties further underscores the U.S. administration's commitment to enforcing its trade policies.

In response, the UK government is preparing to engage in strategic discussions with U.S. counterparts to mitigate any adverse effects on UK-US trade. This includes exploring avenues to strengthen economic ties and address any concerns arising from the new U.S. trade policies. The appointment of key diplomatic figures, such as the potential selection of Peter Mandelson as UK ambassador to Washington, is seen as crucial for maintaining robust transatlantic relations during this period.


While the "America First Trade Policy" Executive Order aims to bolster U.S. economic interests, it requires careful navigation by the UK to preserve and enhance its trade relationship with the United States. Proactive engagement and strategic diplomacy will be essential to address the challenges and leverage the opportunities presented by this policy shift.


UK Exporters – specially those trading goods need to prepare and plan for the eventuality of tariffs being applied, and also how their current supply chains may be affected. Don’t wait around and plan ahead!


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Contact our team at international@gmchamber.co.uk


Sources: The Guardian, DOJO Consulting, The White House, ICC


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