WIREDGOV

This insight is live and will be continuously updated as new announcements are made. 

Since the publication of our previous article, there have been significant developments concerning US tariffs and their global repercussions:

• On April 2, 2025, President Trump announced a 10% universal tariff on all imports to the US, effective April 5, with additional "reciprocal" tariffs on specific countries paused for a 90 day period.
• In response, the UK government has initiated a consultation process with businesses to assess the impact of potential retaliatory measures. A comprehensive list of US products has been published, detailing goods that could be targeted in any future UK action.
• The UK is also engaging in negotiations with the US to establish an economic partnership agreement that could potentially reduce or eliminate the tariff currently imposed on UK goods.

Analysis: Impact on the UK Tech Sector

While the imposition of tariffs and the prospect of retaliatory measures have direct implications for the UK tech sector, the predominantly services-oriented nature of the industry means the immediate impact may be less severe compared to sectors heavily reliant on goods exports. However, the UK tech sector is deeply integrated into the global economy and is highly susceptible to broader economic dynamics. Trade tensions among major partners, such as the US and EU, pose significant risks, as the sector thrives on a stable, rule-based international trading system that supports economic growth and innovation.

techUK's Ongoing Work

techUK continues to monitor these developments closely. We are actively working on a response to the government's consultation on potential retaliatory measures and are preparing a comprehensive paper outlining our vision for a UK-US economic partnership agreement. Drafts of both documents are available, and we encourage members to reach out directly with any questions or to provide input.

techUK is monitoring the global reaction to the announced tariffs and the implications for our sector in the UK and abroad.

Members who have questions on any of the above can reach out to sabina.ciofu@techuk.org