David Peña, Director of International Trade at Chambers Wales South East, South West and Mid, said:

“Tariffs and other trade barriers have historically shown their inefficacy when it comes to fostering long-term economic growth and competitiveness of products and businesses.

“Increased levels of uncertainty paired with slow economic growth paint a grim picture for Welsh businesses, all while inflationary pressures are still present. The effect of increased global tariffs will be impacting all sectors: from exporters seeing their products becoming less competitive overseas, to importers seeing their supply chains impacted, to final consumers on all receiving ends.

“We expect our politicians to keep dialogue channels open and arrive to satisfactory agreements. Tariffs and trade barriers that are raised can also be taken down.

“Chambers Wales South East, South West and Mid stands ready to support businesses in Wales through market turbulences and will always work with partners and stakeholders to find alternative and innovative ways to keep trade flowing. We stand for trade, commerce and economic growth.”

Shevaun Haviland, Director General of the BCC, said:

“The government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.

“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on businesses communities across the world.

“Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.

“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.

“The UK is not without influence, our bilateral trade with the US is worth £300bn, we have £500bn invested there and it has £700bn tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for government to consider.

“There are no winners in the current scenario, negotiations will take time and will inevitably involve compromise. Any decisions on taxes will need to be taken very carefully, and the government must consider all its fiscal options.

“It should keep everything on the table during talks, but retaliatory tariffs should only be a last resort.

“Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.

“We would advise businesses to immediately start negotiations with their US customers on managing the impact of these tariffs – depending on their contracts, there may be deals to be done. In the long-term exploring replacement markets, especially the EU, CPTPP countries or other trade deals, due to be made later this year, will be options.

“Support may also be available from the British Business Bank’s Growth Guarantee scheme which can offer financial support to firms with cashflow issues.”