Latest news with #UK-US
Yahoo
16 hours ago
- Business
- Yahoo
Simon Jack: Tariff ruling doesn't really change US-UK deal
This latest twist in the Trump trade tariff drama has many people asking what it means for the UK's deal with the US. The answer is actually not as much as you might think. For a start, the tariffs that the US court has ruled illegal do not include those on cars, which make up the bulk of what the UK exports to the US, and steel and aluminium, which are the other UK industries most affected. UK exports of cars are currently attracting 27.5% tariffs while steel and aluminium are hit with 25% tariffs - the same as every other country. Wednesday's ruling has not changed that. What is in the UK-US tariff deal? And although the UK has done a deal with the US to reduce car tariffs to 10% and steel and aluminium tariffs to zero, that deal is yet to come into force. Sources at Jaguar Land Rover told the BBC that these tariffs were costing them "a huge amount of money" and pushed back on the notion floated by the car industry trade body, the SMMT, that they could run down current US inventories before feeling the pain of the tariffs. The government said it was working to implement the deal as quickly as possible and that Trade Secretary Jonathan Reynolds would press the case for speedy implementation when he meets US representatives at a meeting of the Organisation for Economic Co-operation and Development think-tank in Paris next week. The ruling does block Trump's imposition of blanket tariffs of 10% on other UK goods entering the US - such as products like salmon and whisky. So how that part of the tariff deal will pan out remains uncertain. British exports breathing any sigh of relief at tariffs being stopped could be short-lived as the White House has said it intends to appeal the decision. There are also other mechanisms for the President to impose tariffs - through different provisions in trade acts or pushing them through congress. The UK announced its trade deal with the US to some fanfare, but there are question marks as to how much better off the UK will be than other countries if it turns out that the President is prevented from imposing swingeing tariffs on others by either the courts or his own legislature. Perhaps the most corrosive effect of all is yet another wild card being thrown into an already unpredictable game of international trade stand-off. It makes it hard for businesses to plan, to invest, with any confidence.
Scotsman
a day ago
- Business
- Scotsman
UK mid-market shaken but not deterred by tariffs dramas and economic head winds
New research from leading business and financial advisory firm Grant Thornton UK has revealed the UK's mid-market remains broadly optimistic in the face of uncertainty driven by tariffs. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Grant Thornton UK's latest Business Outlook Tracker, a rolling survey of over 600 UK mid-market decision makers (April 2025) found that whilst businesses are reviewing their strategies around US and international investment, they expect their decisions to be made quickly and feel they have a clear view of the options available. Undertaken before the announcement of the UK-US trade deal, the Business Outlook Tracker optimism indicators have declined since they reached record highs at the beginning of the year; they remain above average levels seen across the last four years. 80% of businesses were optimistic about the UK's economic prospects over the next six months (-3pp since February) and 59% expect their organisation's profits to increase in next six months (-8pp decrease since February). Advertisement Hide Ad Advertisement Hide Ad Jill Hay, Partner at Grant Thornton UK in Scotland, said:'Mid-market businesses are the real powerhouse of the UK economy. Their plans, actions and opinions are a clear bellwether of our economic health. This survey was undertaken in light of the Government's Spring Statement and six months after the Autumn Budget, both of which contained significant fiscal announcements which created cost increases for businesses in many areas. That mid-market leaders remain this positive is notable. Jill Hay, Partner at Grant Thornton UK in Scotland 'Having faced the considerable challenges of the last five years, dominated by the pandemic and its after-effects, many businesses are now hard-wired to withstand sudden shocks and have built resilience into their business model.' When questioned about their focus on the US market, 75% of respondents said that the US is a core growth market. Though many (61%) respondents agreed that tariffs will have a negative impact on the growth of their business, mid-market leaders are exploring options and remaining cautiously optimistic about cross-Atlantic trade. 70% still believe the Trump administration is good for British business, though this has dropped -13pp since February this year. Despite this positive sentiment, of those businesses currently trading with the US (68% of total respondents) nearly half (45%) expect to stop trading with the US completely, and 25% expect to scale down trading with the US. Only a small number (9%) do not expect any impact on their trade with the US. Advertisement Hide Ad Advertisement Hide Ad Jill Hay concluded:'According to our research, businesses are moving quickly to consider all options on the table, from exploring alternative markets, to setting up US operations to moving elements of the supply chain back to the UK. 'Whilst the survey was undertaken before the announcement of the US-UK trade deal, we have seen limited details so far, and bearing in mind that negotiations in some areas are still in train, I suspect that the mid-market's planning will have changed little – there is still a lot to be decided, and considering all options remains the right business course of action. 'Things are changing at pace, this month so far, we have seen two trade deals and interest rate cut delivering some positive economic progress and welcome reassurance for businesses. Trade deals serve to offer clarity for businesses, aiding planning and investment. With a further deal with the EU expected before the end of the month, this clarity along with the endorsement of global leaders reinforces the UK's position as a reliable trading partner. 'Crucially, in the current unpredictable world, it is important not to take knee-jerk decisions when considering market focus or location of operations. These are longer-term decisions and assuming an outcome can result in locking a business into a costly change programme and higher cost environment. Advertisement Hide Ad Advertisement Hide Ad 'However, inertia can also negatively impact a business. Detailed sensitivity and options analysis, with flexible contingencies, is how we are seeing the better-prepared businesses responding in its current period of 3-6 months before we know more of where US policy, and key international trade deals, will end up.'
Scotsman
2 days ago
- Business
- Scotsman
UK mid-market shaken but not deterred by tariffs dramas and economic head winds
New research from leading business and financial advisory firm Grant Thornton UK has revealed the UK's mid-market remains broadly optimistic in the face of uncertainty driven by tariffs. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Grant Thornton UK's latest Business Outlook Tracker*, a rolling survey of over 600 UK mid-market decision makers (April 2025) found that whilst businesses are reviewing their strategies around US and international investment, they expect their decisions to be made quickly and feel they have a clear view of the options available. Undertaken before the announcement of the UK-US trade deal, the Business Outlook Tracker optimism indicators have declined since they reached record highs at the beginning of the year; they remain above average levels seen across the last four years. 80% of businesses were optimistic about the UK's economic prospects over the next six months (-3pp since February) and 59% expect their organisation's profits to increase in next six months (-8pp decrease since February). Advertisement Hide Ad Advertisement Hide Ad Jill Hay, Partner at Grant Thornton UK in Scotland, said: 'Mid-market businesses are the real powerhouse of the UK economy. Their plans, actions and opinions are a clear bellwether of our economic health. This survey was undertaken in light of the Government's Spring Statement and six months after the Autumn Budget, both of which contained significant fiscal announcements which created cost increases for businesses in many areas. That mid-market leaders remain this positive is notable. Jill Hay, Partner at Grant Thornton UK in Scotland 'Having faced the considerable challenges of the last five years, dominated by the pandemic and its after-effects, many businesses are now hard-wired to withstand sudden shocks and have built resilience into their business model.' When questioned about their focus on the US market, 75% of respondents said that the US is a core growth market. Though many (61%) respondents agreed that tariffs will have a negative impact on the growth of their business, mid-market leaders are exploring options and remaining cautiously optimistic about cross-Atlantic trade. 70% still believe the Trump administration is good for British business, though this has dropped -13pp since February this year. Despite this positive sentiment, of those businesses currently trading with the US (68% of total respondents) nearly half (45%) expect to stop trading with the US completely, and 25% expect to scale down trading with the US. Only a small number (9%) do not expect any impact on their trade with the US. Advertisement Hide Ad Advertisement Hide Ad Jill Hay concluded: 'According to our research, businesses are moving quickly to consider all options on the table, from exploring alternative markets, to setting up US operations to moving elements of the supply chain back to the UK. 'Whilst the survey was undertaken before the announcement of the US-UK trade deal, we have seen limited details so far, and bearing in mind that negotiations in some areas are still in train, I suspect that the mid-market's planning will have changed little – there is still a lot to be decided, and considering all options remains the right business course of action. 'Things are changing at pace, this month so far, we have seen two trade deals and interest rate cut delivering some positive economic progress and welcome reassurance for businesses. Trade deals serve to offer clarity for businesses, aiding planning and investment. With a further deal with the EU expected before the end of the month, this clarity along with the endorsement of global leaders reinforces the UK's position as a reliable trading partner. 'Crucially, in the current unpredictable world, it is important not to take knee-jerk decisions when considering market focus or location of operations. These are longer-term decisions and assuming an outcome can result in locking a business into a costly change programme and higher cost environment. Advertisement Hide Ad Advertisement Hide Ad
Scotsman
2 days ago
- Business
- Scotsman
Thames Water record 104.5m fine
From Thames Water's record fine and Pets at Home's vet division overtaking retail, to Willmott Dixon's profit rebound, falling retail confidence, and a warning from Britain's biggest bioethanol plant - here are today's top UK business stories. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Thames Water has been hit with a record £104.5 million fine for sewage failures, plus £18.2 million for breaking dividend rules. Regulator Ofwat says the penalty will be paid by the company and its investors - not customers. It follows Ofwat's biggest ever probe into how sewage works and networks are run. Pets at Home's vet division overtakes retail: More Business in Brief Pets at Home has posted flat revenue, with retail and vet services pulling in opposite directions. Retail profit fell 16.6 per cent to £72.9 million, while vet profit surged 23.3% to £75.9 million - overtaking retail for the first time. Vet revenue now makes up a third of the business. Retail sales dropped nearly two per cent, as weak footfall and consumer pressures continue to bite. Pets at Home has posted flat revenue, with retail and vet services pulling in opposite directions. | Getty Images Retailers across the board are bracing for tough times, with plans to raise prices, cut jobs and slash investment. A CBI survey shows sector confidence has dropped faster than at any point since the pandemic. Rising costs from tax hikes and a higher minimum wage are squeezing businesses. Willmott Dixon is back in profit, reporting £46.8 million before tax after a £14.4 million loss last year. The turnaround follows recoveries from cladding-related costs and a steady £1.2 billion turnover. The construction firm says it's entering the new financial year with strong momentum. The UK's biggest bioethanol plant says it could shut down due to the latest UK-US trade deal. Hull-based Vivergo Fuels warns the removal of a key tariff on US ethanol is the 'final blow'. It says British producers can't compete with subsidised US imports. Vivergo is urging the Government to step in and fix what it calls 'regulatory failures'. And Growth investor BGF has pledged £100 million to support Welsh businesses. It's part of a wider £3 billion UK commitment over the next five years. BGF has already invested £47 million in Wales since 2011. It's also backing female-led firms, with £300 million earmarked across the UK.
Scotsman
2 days ago
- Business
- Scotsman
Thames Water record 104.5m fine
From Thames Water's record fine and Pets at Home's vet division overtaking retail, to Willmott Dixon's profit rebound, falling retail confidence, and a warning from Britain's biggest bioethanol plant - here are today's top UK business stories. Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Thames Water has been hit with a record £104.5 million fine for sewage failures, plus £18.2 million for breaking dividend rules. Regulator Ofwat says the penalty will be paid by the company and its investors - not customers. It follows Ofwat's biggest ever probe into how sewage works and networks are run. Pets at Home's vet division overtakes retail: More Business in Brief Pets at Home has posted flat revenue, with retail and vet services pulling in opposite directions. Retail profit fell 16.6 per cent to £72.9 million, while vet profit surged 23.3% to £75.9 million - overtaking retail for the first time. Vet revenue now makes up a third of the business. Retail sales dropped nearly two per cent, as weak footfall and consumer pressures continue to bite. Pets at Home has posted flat revenue, with retail and vet services pulling in opposite directions. | Getty Images Retailers across the board are bracing for tough times, with plans to raise prices, cut jobs and slash investment. A CBI survey shows sector confidence has dropped faster than at any point since the pandemic. Rising costs from tax hikes and a higher minimum wage are squeezing businesses. Willmott Dixon is back in profit, reporting £46.8 million before tax after a £14.4 million loss last year. The turnaround follows recoveries from cladding-related costs and a steady £1.2 billion turnover. The construction firm says it's entering the new financial year with strong momentum. The UK's biggest bioethanol plant says it could shut down due to the latest UK-US trade deal. Hull-based Vivergo Fuels warns the removal of a key tariff on US ethanol is the 'final blow'. It says British producers can't compete with subsidised US imports. Vivergo is urging the Government to step in and fix what it calls 'regulatory failures'.
