German manufacturers and alcohol producers can take advantage of closer trade relations with the United Kingdom in the wake of the new US tariff worn by President Donald Trump, according to the subject of review, taxes and advisory consulting Blake Rothnberg.
The so -called “Liberation Day”, announced by the White House this week, imposes large drawings on imports from 60 countries. While the UK faces a 10 % tariff, imports from the European Union will be hit at a rate of 20 %, creating new dynamics for global supply chains and exporters.
The new tariff structure can provide a “silver lining” to German companies with a manufacturing imprint in the United Kingdom.
He said: “The introductory decrease in UK imports can be considered a silver lining for German companies that have manufacturing in the United Kingdom, given the 10 % average announced by UK imports compared to the rate of 20 % on the imports of the European Union.”
Changes can also open new export opportunities for German alcohol producers. Germany is the third largest source of wine in the European Union and the fourth largest source of beer, with the United States as a major market. However, Trump's new tariff on beer and wine imports threaten to strangle this flow.
“German producers can turn their attention to the United Kingdom, and it is the second largest importer of wine in the world after the United States,” Schmid Soltao noted. “Although German alcohol exports to the UK are currently modest, there is great potential for growth – especially since Germany was also the largest import partner in the United Kingdom in 2023.”
This transformation may also push for German manufacturers and wine makers to think about expanding their presence in the United Kingdom, either through direct exports or local partnerships.
However, auto makers in Germany are unlikely to benefit. Despite the low customs tariffs in the UK, the BMW-owned BMW-owned BMW, and the United Kingdom-owned in the United Kingdom-will remain 25 % tariffs on auto imports in the United States, in line with the wider industry rule.
With the continued development of global trade relations, post-Britain's elasticity can be useful for the UK-not only for British exporters but also for European companies that seek to maintain access to the main international markets, especially the United States.