UK says privileged trading terms with US will ‘continue’ in wake of Trump tariff ruling

Politico Europe · Feb 20, 2026 · Collected from RSS

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News Trade UK LONDON — The U.K. government said it expects its “privileged trading position with the U.S. to continue” after the Supreme Court struck down President Donald Trump’s tariffs on Friday. The landmark ruling calls into question the sweeping “reciprocal” tariffs Trump imposed on trading partners last April, including a baseline 10 percent tax on most U.K. goods entering the U.S. The ruling — which applies to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) — does not affect sector-specific duties on sectors like steel, aluminium and automotive. Responding to the news, a U.K. government spokesperson said: “This is a matter for the U.S. to determine but we will continue to support U.K. businesses as further details are announced. “The U.K. enjoyed the lowest reciprocal tariffs globally, and under any scenario we expect our privileged trading position with the U.S. to continue. “We will work with the Administration to understand how the ruling will affect tariffs for the UK and the rest of the world.” But William Bain, head of trade policy at the British Chambers of Commerce, said the ruling “does little to clear the murky waters for business,” pointing out that the president could theoretically use the 1974 Trade Act to impose even higher tariffs on the U.K. “The court’s decision also raises questions on how U.S. importers can reclaim levies already paid and whether U.K. exporters can also receive a share of any rebate depending on commercial trading terms,” he added. “For the U.K., the priority remains bringing tariffs down wherever possible. It’s important the UK government continues to negotiate on issues like steel and aluminium tariffs and reduces the scope of other possible duties.” This is a developing story. Visit our site for the latest updates.