Wigan's risk from US tariffs lower than many

Since taking office in January, US President Donald Trump has introduced tariffs on goods imported into the US from many countries, including the UK.

These include a 25 per cent tariff on all aluminium, steel and derivative goods, 25 per cent tariff on all passenger vehicles and light trucks and, for the UK, 10 per cent baseline tariff on imports, affecting most goods.

Although tariffs were paused for many countries last week, a few days after they came into force, it is not the case for the UK; and negotiations with the US are ongoing to strike a trade deal which would mitigate the impact of these new taxes on the UK's economy.

Research by urban policy think tank Centre for Cities found the economic impact of the US tariffs will be felt everywhere in the UK, but warned "the damage will not spread equally across places".

Using the share of US goods exports in all exports from an area, the think tank found the exposure of each city to the new tariffs will vary significantly across the country.

Centre for Cities' analysis shows £111m (7.8 per cent) of the £1.4bn total exports from Wigan were estimated to be goods to the US in 2022 – the most recent year for which data is available – meaning the area would be less exposed than most UK cities to the new tariffs.

The research found Coventry could be the most impacted city, with 22.1 per cent of its total exports being US goods. On the other end of the scale, just 2.7 per cent of York’s exports were US goods.

The West Midlands would be the most exposed region, mainly due to its large machinery and transport sector which includes car manufacturing, while the Greater South East, including the South East and London, would be less exposed because its economy depends more on services not affected by the new tariffs.

Paul Swinney, director of policy and research at Centre for Cities, said: "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."

Earlier this month, Business and Trade Secretary Jonathan Reynolds said: "The best interests of British business has shaped our approach throughout as we prepare for all scenarios, which is why we are asking them for their views on how these tariffs impact their operations and day-to-day lives.

"Our cool-headed, pragmatic approach means that talks with the US will continue to reflect our mandate to deliver economic stability, as we press the case for a trading relationship that supports businesses on both sides of the Atlantic, and reflects our Plan for Change and the best interests of the UK public."