Economy secretary warns Trump tariffs will damage most Welsh businesses exporting to USA

Wales’ Economy secretary has acknowledged that tariffs introduced by President Donald Trump will have a detrimental impact on almost all Welsh businesses that export to the USA.

On Wednesday (2 April) President Trump announced a series of global ‘reciprocal’ tariffs,  complaining that the US’s trading deficit of $1tn is a result of “unfair” practices from trading partners, with punitive  tariffs being used as a negotiation tool to extract concessions from them.

The UK has been hit with the minimum tariff of 10%, which will apply on imports into the US from 5 April.

This is in addition to the 25% tariff on steel and aluminium imposed in February and on cars and automotive parts, announced on 26 March 2025. There are a limited number of products that will initially be exempt from these tariffs, such as pharmaceutical products and semiconductors.

Export partner

The US is Wales’ second largest export partner, behind the EU, accounting for 13.5% of total goods exports.

Latest data shows that the value of Welsh goods trade with the US was £6.4bn in 2024 – with imports and exports worth £4.2bn and £2.2bn respectively.

Of the 3,188 Welsh businesses that exported goods worldwide in 2024, around a third (33.4%) of them exported to the United States.

In a statement prior to the tariffs taking effect on Saturday, Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, wrote: “Whilst it is a small relief to see that the tariffs that will be applied to imports from the UK are lower than some other trading countries and blocs, such as the EU, I remain deeply concerned about the impact that they will have on our businesses in Wales.

“A 10% tariff represents a significant rise for most products and, whilst some of our key exporters may be able to benefit from exemptions, the impact of these tariffs will be far-reaching and affect almost all of our businesses that export to the US.

“I understand that, although the UK government has launched a request for input on the implications for British businesses of possible retaliatory tariffs, it currently does not plan on retaliating to these new tariffs and is actively seeking a deal with the US that could lead to their reduction.

“We are hopeful that this could be achieved in the near future, and I remain supportive of the approach being taken by the UK government.

“In preparation for this announcement, I have been engaging with the trade unions the UK government and representatives of business and industry in Wales. We remain in close contact with the UK government as the situation develops and the potential impact of these tariffs becomes clearer.  In the meantime, we will continue to support those Welsh exporters who are impacted through our business support programmes.”

Trade barriers

Speaking in the House of Commons, on Thursday, Liz Saville Roberts, Plaid Cymru’s Westminster leader, called for the UK Government to accelerate the removal of trade barriers with Europe, arguing it was “economic common sense” in the face of the US’s protectionist policies.

She said: “Some commentators are fawning over a 10% tariff simply because our nearest neighbours have been hit worse.

“Let’s get real here. The 25% tariff on steel and aluminium will hit Wales’s biggest export to the US – machinery and transport equipment.

“And it’s a fact that the EU is Wales’s greatest trading partner with Welsh exports valued at £11.2 billion.

“In the face of an American President with an obsession with international economic revenge, does the Minister recognise that it is economic common sense to accelerate scrapping trade barriers with Europe?”