London is less exposed to the impact of President Trump’s new tariff regime than almost any other city in the UK, new figures show.
Britain was hit by a new 10% tariff on goods by Washington last week on so called “Liberation Day” far less than other major US trading partners such as the European Union and China.
However, there are higher import barriers for goods in certain sectors such as car manufacturing and steel making which will suffer 25% tariffs.
Think-tank Centre for Cities ranked Britain’s 62 largest cities and towns based on estimates of goods exports to the US as a share of all total exports.
London came third from bottom on the list with just 3.2% of its exports likely to be caught by the tariffs. That is because London’s economy is built largely on services such as banking, insurance, tech and tourism, which has are not affected by the Trump tariffs.
The research suggests that the capital’s near $1 trillion economy will see little direct damage from the new tariffs.
However, the huge gyrations in financial markets seen in recent days could have indirect consequences for the City and Canary Wharf if they continue for many weeks,
Only Edinburgh, another city heavily dependent on financial services and tourism, and York, had less exposure with 2.9% and 2.7% respectively of their exports comprised of goods heading for the US market.
Coventry in the heart of the West Midlands motor manufacturing and metal bashing belt, was most exposed with 22.1%. The city was followed by Derby, home to one of Britain’s biggest exporters, engineering giant Rolls-Royce.
Other towns and cities with major US end markets for their exports include Telford, Worthing and Blackpool.
Paul Swinney, director of policy and research at the Centre for Cities, said:“The direct impact of the new US trade tariffs on the UK is uneven.
“Places where manufacturing represents a higher share of the local economy are the places that depend the most on exporting goods, including to the US. These include weaker local economies with the lowest share of jobs in high-paid services sectors.”
