The impact of US tariffs to the local economy

As a matter of urgency I want to highlight a pressing issue facing businesses here in the UK – and particularly in the West Midlands – and that is the impact of American tariffs on the economy and the regional business sector, writes Dr Nasir Awan to the Birmingham Post.

The new tariffs imposed by President Trump present a variety of challenges on the global stage to developing nations, challenges directly linked to the recent shifts in American trade policy.

The United States, traditionally one of our most important trading partners, recently announced a new wave of import tariffs. These measures are set to affect a range of British goods, from automotive parts and industrial machinery to textiles and food products.

For businesses in the West Midlands, a region built on a proud tradition of manufacturing, engineering and trade, these tariffs present a serious threat. Companies which have long relied on exporting to the US now face increased costs, squeezing profit margins and potentially making British goods less competitive against domestic American producers or other international suppliers not hit with similar tariffs.

Sectors such as automotive components, precision engineering and even our thriving food and beverage exports – think of our famous West Midlands craft breweries and artisan food-makers – are particularly vulnerable.

For many small and medium-sized enterprises, the American market represents a major share of their export revenue. Tariffs will not only reduce competitiveness but could also lead to job losses, stalled growth and reduced investment right here in the West Midlands.

On a broader note, I recently returned from a trade mission to Pakistan – a country whose economy is heavily dependent on exports to the United States. The US remains Pakistan’s single largest export destination, accounting for over 20 per cent of its total exports, particularly in textiles, leather goods and sports equipment.

However Pakistan now faces a double blow. Firstly, the suspension of US aid programmes has stripped millions in development funding that supported crucial areas like education, health care and infrastructure.

Secondly, the imposition of new import tariffs – some climbing as high as 15 to 20 per cent on key products like textiles – will make it even harder for Pakistani businesses to compete in the American market.

The consequences are potentially devastating. Pakistan, like many developing countries, was already grappling with inflation, political instability and debt. Now higher tariffs threaten to suffocate the very export industries that are vital for creating jobs, earning foreign exchange and supporting broader economic development.

This is not just a problem for Pakistan or for West Midlands exporters – it is a problem for the global economy. Trade restrictions, when implemented broadly and aggressively, risk pushing developing countries deeper into poverty. Without access to major markets like the United States, many countries could see years of development gains wiped away, exacerbating inequality and instability.

Meanwhile, for the UK – especially for export-oriented regions like the West Midlands – these tariffs could dampen our post-Brexit ambitions to become a truly global trading nation.

In light of the challenges it is crucial that we, as business leaders, policymakers and communities, work together to advocate for fair trade practices. We must support local businesses in diversifying their markets, and we must push for international agreements that promote, rather than hinder, sustainable economic development, both at home and abroad.

Dr Nasir Awan MBE DL is President of Greater Birmingham Chambers of Commerce and CEO of Awan Marketing International.