At the same time, Bristol’s business community is facing an acute sense of uncertainty. The US has implemented a wide range of tariffs that has affected numerous countries including the UK. These tariffs originally aimed to protect American manufacturing jobs. Today, they have been whittled down to a floor of 10% for all but a few countries, although China, Mexico, and Canada still enjoy lucrative exceptions. The implications for Bristol’s economy are significant, particularly given the city’s reliance on exports.
The UK currently benefits from a preferential tariff of 10%. Some sectors, including manufacturers of motor vehicles, are saddled with an even stricter 25% tariff rate—for example, auto makers such as Jaguar Land Rover. Local businesses are concerned about being undercut on price and losing market share because of this imbalance. Bristol’s exports are about evenly split between physical goods and services, further exacerbating their worries. As of now, film and TV services, such as film editing and accountancy, are not included in the tariffs at all, giving those industries some relief.
A recent study by the Centre for Cities assessed how Bristol and South Gloucestershire businesses might be affected by these trade tariffs. The research revealed that in 2022, Bristol and South Gloucestershire exported nearly £1 billion worth of goods to the US. Most of these exports originated in the aerospace industry, highlighting the critical role this market plays for local manufacturers.
The Centre for Cities’ chief exec, Andrew Carter, put it starkly by explaining the financial impact of these tariffs. He pointed out that £1 billion is only about 12% of all goods exported from Bristol.
“Even in today’s terms, it’s a lot of money – it’s about 12% of the total goods Bristol exports,” – Andrew Carter
Specifically, Bristol businesses are wary of the severe impact these tariffs can impose on their day-to-day operations. Chris Frappell, managing director of the Nailsea-based motorcycle repair business Tru-Tension, expressed concern at aggressive discounting. The recent short-sighted tariffs have made him especially fearful. Frappell, who first found fame on BBC’s Dragons’ Den in 2018, expressed how this would affect his business.
“We’re going to end up with a 10% higher price for our customers and that means competitors of ours in the US can gain more market share and ultimately we have to make a choice between swallowing that price or increasing them,” – Chris Frappell
Frappell highlighted the greater impact that these tariffs have on domestic manufacturing as a whole.
“Ultimately, the UK industries that do manufacture here and export to the US may decide that it’s not viable to manufacture here anymore and that drives business away from the UK,” – Chris Frappell
Bloomberg Philanthropies, Carter admitted that even with the obstacles which the tariffs have created, there’s a bright side. He was keen to emphasize that Bristol exports far outside this Atlantic corridor, with markets across the world.
“On the one hand, it’s a big number but the silver lining is that we also export to other parts of the world,” – Andrew Carter
He warned that even a 10% tariff would derail growth and investment in the region.
“We should be relieved it’s not worse – but the 10% position is not a good one to be in and it will affect growth and investment,” – Andrew Carter