UK-US tariffs deal brings some breathing space for North West manufacturing – but uncertainty is still inhibiting investment and growth, says Clarke Willmott

The UK’s latest agreement with the US on tariffs will buy “some much-need breathing space” for manufacturers in Manchester and the Northwest, according to a leading lawyer. However there remains a real danger that the continued unpredictability in US trade policy will inhibit investment and growth.

Researchers say that the recent announcement that US tariffs affecting key industries including automotive, steel and aluminium would be relaxed, has halved the “hit” that would have been taken had the tariffs originally announced by President Trump been introduced.

Economists at the University of Birmingham estimate that under the full-scale levies, the UK would have taken a £10.8 billion hit by 2030, with around 137,000 jobs lost or under threat.
Now with tariffs on cars cut from 27.5 per cent to 10 per cent and taxes on beef, steel and aluminium removed, the impact of the blow will be reduced by half.
John Flint, partner in the commercial and private client litigation team at national law firm Clarke Willmott in Manchester, who heads up its manufacturing sector team, says that, while some details remain unclear, the tariffs agreement between President Donald Trump and Prime Minister Keir Starmer is potentially “better news” for Manchester and the North West.
“According to the Greater Manchester Chamber of Commerce, the US is the city’s largest trading partner, so any reduction on the tariffs originally outlined by the President Trump on 2nd April is good news,” says John Flint.

“While the 10 per cent baseline tariffs on UK products are being retained as it stands, the lowering of tariffs from 27.5 per cent to 10 per cent on our automotive, steel and aluminium sectors will bring much-needed breathing space.

“This is good news for manufacturing businesses across our region. The steel industry remains important, particularly in Sheffield with the likes of Sheffield Forgemasters. Cars are the UK’s biggest single export to the US, valued at £9 billion in 2024 alone, and while the automotive sector is centred on the Midlands (including Jaguar Land Rover) and the North East, many businesses in the North West rely upon the wider automotive supply chain.

“Clarke Willmott is may well see an increase in demand for commercial legal advice in the manufacturing sector, especially those most exposed to tariff disruption, including advanced manufacturing, engineering, pharmaceutical, life sciences, logistics and technology – all crucial sectors in the economy of Manchester and the North West.
“While this relaxation of tariffs on some key sectors is undoubtedly welcome, the general picture in terms of UK-US trade remains unclear and the ongoing uncertainty is still inhibiting investment and growth.

“The continuous volatility and uncertainty in US trade policy remains a significant barrier. This is particularly felt in the manufacturing sector, with longer and more complex supply chains. Manufacturers in the region will again need to re-examine their existing contractual relationships throughout their supply chain and make a strategic decision on whether to do nothing or seek to terminate and challenge those agreements which are now commercially unviable.”

Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.