Trump tariffs: The uncertainties facing businesses and consumers after tariff changes
BBC World
February 22, 2026
AI-Generated Deep Dive Summary
US President Donald Trump's recent tariff changes have introduced significant uncertainty for businesses and consumers globally. After a Supreme Court ruling invalidated his use of a 1977 law to impose tariffs on imports from nearly every country, Trump turned to Section 122 of the 1974 Trade Act to levy a new 10% temporary tariff, later increasing it to 15%. This shift has left many countries, including the UK and Australia, questioning the validity of previously negotiated trade deals. The lack of clarity has frustrated businesses, who face higher costs and unpredictable pricing for goods exported to the US.
The abrupt changes have particularly affected industries like food and drink, textiles, and industrial goods, which now grapple with increased export costs. William Bain, head of trade policy at the British Chambers of Commerce, noted that the 5% increase in tariffs could discourage businesses from maintaining current levels of trade with the US. This uncertainty is compounded by concerns over how existing deals will be affected under the new Section 122 framework, which requires non-discriminatory application.
Economists and industry leaders warn that these higher tariffs could lead to significant financial burdens for companies and consumers alike. For instance, the UK alone faces an estimated £2-3 billion increase in tariff costs on goods exported to the US. Paul Ashworth of Capital Economics highlighted that major trading partners like the EU and Japan may also be impacted, reverting to a less favorable trade position.
The uncertainty extends to legal implications, with companies potentially seeking refunds for tariffs paid under Trump's earlier, now invalidated, "reciprocal" tariff policies. However, the process for obtaining these refunds is likely lengthy and complex, adding another layer of financial and operational stress for businesses already grappling with fluctuating trade policies.
Ultimately, Trump's tariff changes underscore a broader challenge in global trade: the unpredictability of policy shifts and their far-reaching economic consequences. For businesses and consumers, this means higher costs, reduced trade volumes, and increased
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Originally published on BBC World on 2/22/2026