The EU-U.S. trade deal could have one unexpected winner: The UK
Keir Starmer, British Prime Minister left, and US President Donald Trump on Monday, July 28, 2025 before the meetings of Trump Turnberry Golf Field in Turnberry, Scotland.
Tolga Akmen/EPA/Bloomberg through Getty Images
While the world leaders and economists in Europe intimidate the news of the EU-US trade agreement, some experts said the CNBC would be an unexpected support to the UK, even though bad news for the block.
The European Union is faced with a tariff rate of 15% higher in its goods imported to the United States compared to the 10% tax adopted by the UK.
Invetec Chief economist Philip Shaw told CNBC in a statement, “British benefits in theory,” he said.
“The new EU tariff of 15% means that exports to England have become relatively cheaper, which will be able to increase the British trade with the United States by buying goods from the UK instead of the EU.”
The UK goods will be cheaper for US consumers due to lower tariff rate, that is, they may prefer British products on those produced in the EU, Alex Altmann, the partner and president of the German table of Lubbock Fine LLP, is recommended in a note published shortly after the EU-US agreement is announced.
“The UK’s low US tariffs offer a great incentive for EU companies to shift some of their production bases to the UK or expand their existing UK facilities.”
Especially EU -based manufacturers with low profit margins may find the idea of moving England to England to prevent further stuck in these margins.
Altmann, “Britain may be a great indirect winner of this agreement.”
However, the benefits of England are not only linked to the country’s lower tariff rate. Indeed, according to EU Invetec’s Shaw, the EU, which has managed to secure a 15% tax, which is much lower than the 30% when US President Donald Trump is threatened by US President Donald Trump, can be positive compared to Invetec’s Shaw.
“The EU has escaped a more laborious (ie 30%) tariff regime and a series of retaliation measures between the two trade blocks probably.
How likely to support England?
In his statement to CNBC, the EU-US has prevented the potential effect that reached an agreement that reached an agreement, Beth McCall.
“If the US had advanced with 30% tariffs against EU goods, in most cases, the UK goods, which are 10% tariff paid by the US importer, might seem more attractive.” He said.
McCall said that the expected difference in the starting tariff rate, which is only 5%, can still make some UK goods more attractive. “This will take time to see when the current contracts are over and US importers are in search of imports from countries with a lower tariff.”
Questions about the time period have emerged for the effect of tariffs felt throughout the world. Companies have already marked that tariffs are expected to focus on their earnings, and there have been widespread warnings of how tasks can affect economic growth.
However, since many details of trade agreements are not yet large, the exact effects are still uncertain. It may take time to feel some of the effects, for example, increasing costs for consumers can only take place after a while.
Ultimately, both England and the EU are now faced with a more difficult environment.
“The new ratio will be 10% or 15%, while the UK and EU enterprises export to the US, they will encounter much higher tariffs than three months ago.” He said.
