The levy was announced as part of Mr Trump\u2019s campaign to pressure Denmark into selling Greenland to the United States. <\/p>\n
The move threatens to unravel gains secured through the UK\u2011US trade agreement agreed last year.<\/p>\n
Although higher prices would initially fall on American consumers, analysts warn demand for British goods could drop sharply.<\/p>\n
Exporters may be forced to absorb the costs by cutting prices or reducing profit margins.<\/p>\n
The pharmaceutical sector is seen as particularly exposed, with medicines having previously benefited from exemptions under the trade deal.<\/p>\n
Marco Forgione, director\u2011general of the Institute of Export and International Trade, said the tariff would rapidly erode the competitiveness of British products.<\/p>\n
\u201cThe impact for the UK will be huge, particularly at a time when we are struggling with very anaemic growth,\u201d he said.<\/p>\n
Prolonged tariffs, he added, \u201ccould potentially be enough to tip the UK into recession.\u201d<\/p>\n
![\"Donald](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/01\/donald-trump.jpg\")
British exporters are facing a \u00a36billion blow after President Donald Trump imposed a new 10 per cent tariff linked to Greenland<\/p>\n
| <\/p>\n
GETTY<\/p>\n
Economists have also highlighted uncertainty as a major concern, warning that unclear trade policy can deter investment.<\/p>\n
Neil Shearing, group chief economist at Capital Economics, said extended tariffs could freeze business spending at a time when capital expenditure is already weak.<\/p>\n
He described the move as coercive and a sharp escalation in trade tensions.<\/p>\n
Britain\u2019s automotive industry is also expected to feel the strain. The sector contributes \u00a321billion a year to the UK economy and employs around 139,000 people.<\/p>\n
Jaguar Land Rover has already experienced volatility linked to earlier US tariff measures, reporting a 49 per cent fall in profits in the three months to last June. <\/p>\n
The company said there was a \u201cdirect and material impact on profitability and cashflow in the period.\u201d<\/p>\n
![\"Keir](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/01\/keir-starmer.jpg\")
The Prime Minister has said Greenland is for the Danish and Greenlanders to decide their own future<\/p>\n
| GETTY<\/p>\n
The UK\u2011US trade agreement had reduced the company\u2019s export tariff from 27.5 per cent to 10 per cent, but those gains are now at risk.<\/p>\n
Pharmaceutical manufacturers could face even greater exposure.<\/p>\n
The sector is valued at \u00a317.6billion a year and accounts for around 17 per cent of UK business research and development spending.<\/p>\n
Medicines had previously been fully exempt from US tariffs.<\/p>\n
Mr Trump has warned the situation could escalate further.<\/p>\n
Tariffs are set to rise to 25 per cent on June 1 unless Denmark agrees to sell Greenland.<\/p>\n
![\"\\u200bGermany's](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/01\/u200bgermany-s-federal-minister-of-finance-lars-klingbeil.jpg\")
Germany’s Federal Minister of Finance Lars Klingbeil has said “we won’t be blackmailed” by tariffs<\/p>\n
| <\/p>\n
GETTY<\/p>\n
He said the higher levy would remain in place \u201cuntil such time as a Deal is reached for the Complete and Total purchase of Greenland.\u201d<\/p>\n
European Union Council president Antonio Costa said the bloc would respond firmly, suggesting the dispute is unlikely to be resolved quickly.<\/p>\n
William Bain, head of trade policy at the British Chambers of Commerce (BCC), urged a calm response from the UK Government.<\/p>\n
He said ministers should prioritise implementing the Economic Prosperity Deal while negotiating to remove the tariffs, warning that prolonged uncertainty would damage business confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"British exporters are facing a \u00a36billion blow after President Donald Trump imposed a new 10 per cent tariff…\n","protected":false},"author":2,"featured_media":415189,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,12,101,2066,3,111,3733,25,198906,30094],"class_list":["post-415188","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-donald-trump","tag-economy","tag-money","tag-news","tag-politics","tag-tax","tag-us","tag-us-money","tag-us-politics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/415188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=415188"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/415188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/415189"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=415188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=415188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=415188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}