Brexit made firms leave the UK. Trump’s tariffs could bring them back
A European Union (EU) is flying next to a flag of British unity, also known as Union Jack in London.
Jason Alden | Bloomberg Creative Photos | Getty Images
In 2016, Britain’s departure votes from the EU encouraged many businesses to shift operations to the European continent and to invest in investment with them and shift them to their staff.
Until 2025, and US President Donald Trump’s 30% trade tariffs in the EU will start on August 1, unless a trade agreement is reached and can bring them back.
According to Alex Altmann, the partner and president of the German table in London -based accounting and business consultancy firm Lubbock Fine, it becomes a “Britain’s major indirect winner” reality.
“If the tariff ratio for the EU finally reached a place close to 30%, the UK’s much lower US tariffs would offer a great incentive for EU companies to shift some of their production to the UK or expand their existing UK facilities.”
Solihull, Range Rover Sport SUV in the production line in the automobile production facility in the UK
Chris Ratcliffe | Bloomberg | Getty Images
“Britain has a lot of backup production capacity after Brexit. A great gap between the UK and EU tariffs, Altmann, the Vice President of the British Chamber of Commerce in Germany, will be a great opportunity to lose England as a key European manufacturing center.”
As things stopped, England made a trade agreement that reduces tasks in cars to 10% and provides the lowest task in steel imports. London also has a “reset” agreement with the EU after a trade agreement after a trade agreement after the reference after the reference.
Brexit post -trade view
The sweet point that England found itself comes after a few years of uncertainty and anger for businesses, because they tried to wander a world for obstacles for more bureaucracy and export after Brexit.
Considering that 27 countries remained the largest trade partner of the EU, Brexit finally entered into force in 2020, this was an ongoing grip for exporters. The EU made up more than 50% of the UK’s property trade in 2024. According to the European Commission.
A number of large businesses, especially financial services such as Goldman Sachs and JPMorgan, tried to avoid the transnational complexities of the post -Brexit -regulatory complexity of the post -Brexit -based operations of operations and assets such as Dublin, Paris, Amsterdam and Frankfurt. The exit was not as dramatic as he was initially scared.
Supporters and critics, Brexit’s principles and disadvantages, and the EU’s divorce from the EU’s single market and customs union, and the EU membership discuss the free movement of goods and people. Nevertheless, most economists acknowledge that Brexit disrupts Britain’s exports, business and economic growth.
The UK’s independent predictive budget responsibility office predicts that export and imports will be around. 15 % lower In the long run, compared to the fact that England stays in the EU.
Although economists discuss the impact on the wider economy, It usually agrees that it is about 5% lower than the UK’s GSYP.The British bloc did not vote to leave.
Tariffs drop? Not so fast
While the UK changes a new harmony with American and European business partners, the scope of any enemy that arises as a result of the EU’s trade pain with the US continues to be seen.
Trump’s 30% tariff on the block remains unclear whether it will actually continue on August 1st. The Mercurial nature of the US president means that the final tax rate may rise further – threatened 50% tariff before – or lower, towards the EU’s basic 10% level.
Everyone does not accept that the EU can benefit from the fall of trade, regardless of the result of Britain’s latest ditch talks between Brussels and Washington.
“First of all, 30% tariffs for the EU are not given,” Teneo General Manager Carsten Nickel told CNBC last week. He said.
President Donald Trump attended a bilateral meeting with Ursula von Der Luyen, President of the European Commission at the 50th World Economic Forum (Wef) meeting in Switzerland, Switzerland, Davos.
Jonathan Ernst | Reuters
“If we were going to carry production facilities from Europe to England because the United Kingdom has an agreement with the United States, the horizon for the time for this, a multi-year horizon, even if not ten years,” he said.
In addition, Nickel said that Britain’s power remains in financial services rather than more common manufacturing in export -oriented countries such as Germany and Italy.
Nickel, “The truth is that the comparative advantage of England is not in high -level production … So the idea that you go with these things you produce in Germany and Switzerland right now, and you carry it to England tomorrow … This is not just a decision that a business leader can take in Europe.” He said.
