The new measure, unveiled on February 21, 2026, replaces tariffs previously imposed under emergency powers that were declared unlawful by the Supreme Court of the United States. The 15% rate could raise duties on UK exports by five percentage points above the prior 10% baseline, while potentially affecting EU exporters as well.

UK stance: maintain preferential access

UK Education Secretary Bridget Phillipson acknowledged “uncertainty” for businesses but said London expects its preferential arrangements under the US-UK Economic Prosperity Deal (EPD) to continue.

The EPD, announced in May last year by Trump and UK Prime Minister Keir Starmer, provided sector-specific carve-outs, including a 10% tariff on UK cars—lower than for some other countries—zero tariffs on pharmaceuticals, and a pledged reduction in 25% steel duties that has yet to materialise.

William Bain, head of trade policy at the British Chambers of Commerce, said the UK would likely “double down” on the existing framework to secure longer-term certainty, arguing that the core of the May agreement lay in sectoral exemptions rather than the headline 10% rate.

EU deal in limbo

The US has already implemented its agreement with the EU, but it still requires approval from the European Parliament. German MEP Bernd Lange, who chairs its International Trade Committee, suggested a planned vote may be postponed amid what he described as “tariff chaos” and growing uncertainty.

The parliament’s international partnerships committee had been scheduled to vote on February 24, with a full parliamentary vote anticipated in March.

Temporary measure, longer-term uncertainty

Under Section 122 of the 1974 Trade Act, the 15% tariffs can remain in place for only 150 days—until August 23—unless Congress approves an extension. Analysts warn that the temporary nature of the measure complicates planning for businesses and governments alike.

David Henig of the European Centre for International Political Economy said governments are recalibrating in light of the administration’s shifting legal strategies. Bain also noted that Trump could turn to Section 301 of the same act, which permits tariffs in response to “unreasonable” or “discriminatory” foreign practices.

The evolving situation underscores broader uncertainty in transatlantic trade relations, as governments weigh whether to renegotiate, seek exemptions, or prepare contingency measures should the new tariffs remain in force beyond the 150-day window.