Business Secretary Jonathan Reynolds is set to meet JCB chief executive Graeme Macdonald after the company raised urgent concerns about the impact of new US tariffs on British goods.
Hundreds of UK-made products containing steel or aluminium became subject to American levies over the weekend, with JCB among the manufacturers warning that the move has triggered significant disruption.
Mr Macdonald told the Sunday Times there was “chaos at the US ports right now” as goods were held up while customs officials scrambled to interpret the new rules.
“They need to get a deal done quickly because this is very damaging to British industry,” he said. “This has blindsided everybody – us, the UK Government, and certainly US customs. There’s a huge backlog of imported goods in every port now in the US.”
The tariffs cover more than 400 product categories, ranging from garden furniture and children’s cribs to everyday consumer items like shampoo packaged in aluminium.
Donald Trump raised tariffs on steel and aluminium imports from most countries to 50 per cent earlier this year, but Britain’s rate has remained at 25 per cent. UK companies are now lobbying ministers to strike a fresh deal with Washington that could eliminate the tariffs entirely.
Negotiators failed to finalise a metals agreement when the broader UK-US trade deal was signed in May, leaving exporters exposed to the new levies.
A government spokesperson stressed that the UK remains the only nation to have avoided the 50 per cent tariffs imposed elsewhere.
“Thanks to our trade deal with the US, the UK is still the only country to have avoided 50% steel and aluminium tariffs,” they said. “But we are committed to going further to give industry the security they need, protect vital jobs and put more money in people’s pockets through the Plan for Change.
“We will continue to work with the US to get this deal implemented as soon as possible and in industry’s best interests.”
British manufacturers warn that without a rapid resolution, exports could be hit hard, damaging competitiveness and threatening jobs. With a meeting scheduled between Mr Reynolds and Mr Macdonald this week, industry leaders will be watching closely to see if the government can secure a breakthrough on tariffs that many say are already choking trade.