Keir Starmer, UK prime minister, left, and US President Donald Trump, ahead of their meeting at the Trump Turnberry golf course in Turnberry, Scotland, on Monday, July 28, 2025.<\/p>\n
Tolga Akmen\/EPA\/Bloomberg via Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
As world leaders and economists across Europe digest the news of the EU-U.S. trade agreement, some experts told CNBC that while it may be bad news for the bloc, the deal could serve as an unexpected boost to the U.K.<\/p>\n
The European Union is facing a higher 15% tariff rate on its goods imported to the U.S. compared to the 10% levy<\/a> the U.K. has agreed to.<\/p>\n \u201cIn theory, the UK benefits,\u201d Philip Shaw, chief economist at Investec, told CNBC.<\/p>\n \u201cThe new EU tariff of 15% means that UK exports to the US have become relatively cheaper, which could boost British trade with the US as American firms buy goods from Britain rather than the EU,\u201d he explained.<\/p>\n U.K. goods would also be cheaper for U.S. consumers due to the lower tariff rate, meaning they may favor British products over those manufactured in the EU, Alex Altmann, partner and head of Lubbock Fine LLP\u2019s German desk, suggested in a note published shortly after the EU-U.S. deal was announced.<\/p>\n<\/div>\n \u201cThe UK\u2019s lower US tariffs do offer a major incentive for EU companies to shift some of their manufacturing bases to the UK or to expand their existing UK facilities,\u201d he added.<\/p>\n EU-based manufacturers with low profit margins in particular could find the idea of moving to the U.K. attractive to avoid a further squeeze on those margins, Altmann explained, noting that the U.K. has spare manufacturing capacity due to Brexit.<\/p>\n \u201cThe UK could be a big indirect winner of this agreement,\u201d Altmann added.<\/p>\n But the benefits to the U.K. are not only linked to the country\u2019s lower tariff rate. Indeed, the EU managing to secure a 15% levy, which is far lower compared to the 30% the bloc was threatened with by U.S. President Donald Trump, could also be a positive for the U.K. according to Investec\u2019s Shaw.<\/p>\n \u201cThe EU has escaped from a possible major downturn from a more onerous (i.e. 30%) tariff regime and possibly a series of retaliatory measures between the two trading blocs. Here the UK benefits from its major trading partner averting a recession which could have resulted in a decline in UK exports to the EU,\u201d he said in written comments.<\/p>\n<\/div>\n The EU-U.S. reaching an agreement has also hampered the potential impact, Beth McCall, an international trade lawyer at Dentons told CNBC.<\/p>\n \u201cIf the US had proceeded with 30% tariffs against most EU goods, UK goods with a 10% tariff, which is paid by the US importer in most circumstances, could have appeared significantly more attractive,\u201d she said.<\/p>\n McCall noted that the expected difference in the baseline tariff rate, which amounts to just 5%, may still make some U.K. goods more attractive. However, she noted, \u201cthis will take time to be seen as existing contracts come to an end and US importers search for imports from countries carrying a lower tariff.\u201d<\/p>\n<\/div>\nHow likely is the boost to the U.K. to materialize?<\/h2>\n
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