Brexit made firms leave the UK. Trump’s tariffs could bring them back

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A European Union (EU) flies alongside a British Union flag, also known as a Union Jack in London. Jason Alden | Bloomberg Creative Photos | Getty Images In 2016, the U.K.’s vote to leave the EU prompted many businesses to shift operations to the European continent, taking investment and headcount with them. Fast forward to 2025, and the specter of U.S. President Donald Trump’s 30% trade tariffs on the EU, which will kick in on Aug.1 unless a trade deal is reached, could bring them back. “The U.K. could be a big indirect winner” if the threatened U.S. duties on the EU become a reality, according to Alex Altmann, partner and head of the German desk at London-based accountancy and business advisory firm Lubbock Fine. “If the tariff rate for the EU finally ends up anywhere near this 30% level then the U.K.’s much lower U.S. tariffs would offer a major incentive for EU companies to shift some of their manufacturing to the U.K. or to expand their existing U.K. facilities,” he noted in emailed comments.  A Range Rover Sport SUV on the production line at car manufacturing plant in Solihull, U.K. Chris Ratcliffe | Bloomberg | Getty Images “The U.K. has a lot of spare manufacturing capacity after Brexit. A big gap between U.K. and EU tariffs would be a major opportunity for the U.K. to regain some of its lost status as a key European manufacturing hub,” added Altmann, who is also the vice president of the British Chamber of Commerce in Germany. As things stand, the U.K. has already struck a trade deal with the U.S. that reduces duties on cars to 10% and grants it the lowest duty on steel imports. London also has a “reset” deal with the EU, after the Labour government under Prime Minister Keir Starmer —…