**Welsh Economy Industries to be Impacted by Trump’s Tariffs on US Trade**
President Donald Trump recently announced new tariffs on goods imported into the USA, sparking concerns over its impact on the UK and Wales economy. The move has escalated the ongoing global trade war, with the UK facing a 10% tariff on all imports to the US along with 25% tariffs on cars worldwide. These decisions, part of the new “liberation day” tariffs, mark a significant shift in global trade norms since World War II.
The announcement has raised uncertainty regarding how Welsh businesses and consumers will be affected, especially considering that in 2024, Wales exported over £2.23bn worth of goods to the US, representing 13.5% of all exports. The sectors likely to face the toughest challenges due to the tariffs include those involved in exporting machinery and transport equipment, which accounted for over £1bn in sales to the US last year.
Among the industries set to be most impacted by Trump’s tariffs in Wales, machinery and transport equipment manufacturers are expected to bear the brunt. Last year’s exports included a variety of products such as power generating machinery, electrical machinery, general industrial machinery, and road vehicles, collectively amounting to over £1bn pounds in trade with the US.
Other sectors that are likely to feel the effects of the tariffs include those involved in exporting chemicals and related products, miscellaneous manufactures, mineral fuels, and manufactured goods. These industries have significant export values to the US and are expected to face challenges as the tariffs come into effect.
David Peña, Director of International Trade at Chambers Wales South East, South West, and Mid, expressed concerns over the impact of the tariffs on Welsh businesses across various sectors. He highlighted the potential challenges that exporters may face in terms of competitiveness overseas, supply chain disruptions for importers, and price pressures on consumers as a result of the global tariff increases.
The implications of these tariffs extend beyond direct exports to the US, as industries that supply goods to other parts of the UK and Europe could also be affected. For instance, manufacturers of car parts in Wales that contribute to finished products exported to the US may experience consequences from the new trade policies.
In light of these developments, stakeholders in Wales are closely monitoring the situation and assessing the potential risks and opportunities that may arise from the changing trade landscape. The impact of President Trump’s tariffs on the Welsh economy remains a topic of concern, with businesses and policymakers gearing up to navigate the challenges that lie ahead.
As the global trade environment continues to evolve, Welsh industries are bracing themselves for the implications of these tariffs. The coming months will shed more light on how businesses in Wales adapt to the new trade realities and seek ways to maintain their competitiveness in an increasingly complex and uncertain economic environment.