The Welsh Government says it is determined the “close working relationship between Wales and the US will continue to prosper” in the wake of a 10% tariff imposed on UK imports into the USA by President Trump.
Meanwhile the Federation of Small Businesses (FSB) Cymru has called for targeted support from the Welsh Government, including resource for Business Wales to expand their trade advisory services to provide guidance on navigating these new trade barriers and diversifying markets.
Chambers Wales South East, South West and Mid also called for politicians to keep dialogue channels open.
The 10% minimum baseline tariff will apply on imports into the US from April 5. This is in addition to the 25% tariff on steel and aluminium, announced on February 10, and on automotives and automotive parts, announced on March 26. A limited number of products will initially be exempt from these tariffs, including pharmaceutical products and semiconductors.
The US is Wales’ second largest goods export partner, accounting for 13.5% of total goods exports. Latest data shows that the value of Welsh goods trade with the US was £6.4 billion in 2024 – with imports and exports worth £4.2 billion and £2.2 billion respectively.
Of the 3,188 Welsh businesses that exported goods worldwide in 2024, around a third (33.4%) of them exported to the United States.
Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said:
“The Welsh Government continues to nurture close trade links and economic opportunities with the United States. We currently have international offices in New York, Washington DC, Atlanta, Chicago, and Los Angeles.
“Last month the Minister for Culture, Skills and Social Partnership led a delegation of Welsh creative companies to the 2025 Games Development Conference in San Francisco and we also announced plans from the US semiconductor design software leader Cadence Design Systems, Inc. to open a new design centre in Cardiff, creating more than 100 highly skilled jobs. We are determined this close working relationship between Wales and the US will continue to prosper.
“Whilst it is a small relief to see that the tariffs that will be applied to imports from the UK are lower than some other trading countries and blocs, such as the EU, I remain deeply concerned about the impact that they will have on our businesses in Wales. A 10% tariff represents a significant rise for most products and, whilst some of our key exporters may be able to benefit from exemptions, the impact of these tariffs will be far-reaching and affect almost all of our businesses that export to the US.
“I understand that, although the UK Government has launched a request for input on the implications for British businesses of possible retaliatory tariffs, it currently does not plan on retaliating to these new tariffs and is actively seeking a deal with the US that could lead to their reduction. We are hopeful that this could be achieved in the near future, and I remain supportive of the approach being taken by the UK Government.
“In preparation for this announcement, I have been engaging with the trade unions the UK Government and representatives of business and industry in Wales. We remain in close contact with the UK Government as the situation develops and the potential impact of these tariffs becomes clearer. In the meantime, we will continue to support those Welsh exporters who are impacted through our business support programmes.”
Kevin Gardiner, Regional Growth Board Chair of Cardiff Capital Region, said:
“Higher US tariffs on Welsh exports is bad news for trade, jobs and profitability, and some businesses will be hit hard. Overall, however, the damage will be manageable. The US is usually in the top three of Wales' non-UK trading partners, buying around a seventh of our visible exports, a contribution of perhaps 2-3% to our overall economy, but only a portion of this will likely be lost.
“An extra 10% levy on imported Welsh products – a price increase to the US buyers, but with the revenue going to the US government, not to the Welsh exporters – sounds like a daunting blow to our competitiveness. It needs to be put in perspective, however, and seen in the context of – for example – constantly-fluctuating exchange rates and input costs.
“We also need to bear in mind that the tariffs may not be in place forever. The UK Government, like others, may reach some agreement with the US – which has had lower tariffs than the rest of the world to begin with – and even if it doesn’t, US consumers may balk when they realise that their disposable income won’t go as far as it did. Mr Trump is many things, but he is not an ideologue, and if his policies prove unpopular, he may drop them.
“Tariffs are unlikely to succeed in their long-term objective anyway. In trying to revive heavy manufacturing and mining in the left-behind regions where many of his supporters live, Trump is effectively trying to turn back the tide of economic progress. But beggar-thy-neighbour policies are not the only way of coping with the loss of traditional industries – as anyone from South Wales could have told him.”
Writing for Business News Wales Dr Edward Thomas Jones, Senior Lecturer in Economics at Bangor Business School, says:
“Although the U.K. (aside from its car sector) largely avoided significant negative impacts, its economy is still predicted to be negatively affected by these new trade deals. The British economy will be impacted not only by these direct tariffs but also by the slowdown in its major trading partners, like the E.U., who face much higher tariffs.
“A prolonged slowdown in the British economy could wipeout Rachel Reeves’ fiscal headroom of £9.9 billion announced in her Spring Statement. If this were to happen, the Chancellor may need to increase taxes later this year.”
David Peña, Director of International Trade at Chambers Wales South East, South West and Mid, said:
“Tariffs and other trade barriers have historically shown their inefficacy when it comes to fostering long-term economic growth and competitiveness of products and businesses.
“Increased levels of uncertainty paired with slow economic growth paint a grim picture for Welsh businesses, all while inflationary pressures are still present. The effect of increased global tariffs will be impacting all sectors: from exporters seeing their products becoming less competitive overseas, to importers seeing their supply chains impacted, to final consumers on all receiving ends.
“We expect our politicians to keep dialogue channels open and arrive to satisfactory agreements. Tariffs and trade barriers that are raised can also be taken down.
“Chambers Wales South East, South West and Mid stands ready to support businesses in Wales through market turbulences and will always work with partners and stakeholders to find alternative and innovative ways to keep trade flowing. We stand for trade, commerce and economic growth.”
Tina McKenzie, Policy Chair of the Federation of Small Businesses, said:
“The news of 10% tariffs on UK-US trade is a major blow to SMEs. Currently, 59% of small UK exporters sell into the US market.
“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat. The fallout will stifle growth, hurt opportunities, and put a serious dent in the global economy. Now, we’ll need to look at the fine print to work out the precise implications for the UK’s small exporters.
“We support the push for an agreement between the UK and US governments that brings an end to tariff wars and puts SMEs at its centre by reducing non-tariff barriers.
“It’s already tough out there for small firms wanting to export. However, the opportunities it brings are endless – allowing them to tap into new markets and diversify their revenue streams. Those who do export are more likely to grow faster during tough economic times, too.
“The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse. This will provide breathing space and support, protect people's wages, and ensure that suppliers owed payments are paid – all helping to contain the fallout and allow firms a bridge as they adapt.”
John Hurst, FSB Wales Chair, said:
“These tariffs pose an immediate challenge for Welsh small businesses exporting to the US, jeopardising their ability to compete in this important market. Given that the United States was the second-highest value market for Welsh products in 2024, accounting for £2.2 billion, the potential damage is significant.
“The scale of this emerging challenge necessitates targeted support from the Welsh Government, including resource for Business Wales to expand their trade advisory services to provide guidance on navigating these new trade barriers and diversifying markets.
“We would also like to see Business Wales undertake proactive monitoring to gauge the impact of these tariffs on Welsh businesses, enabling swift and effective responses.
“A clear strategy is vital in order to give businesses confidence that they will be supported to continue exporting and helped to thrive in a competitive global market.”
