The Effect of US Tariffs on the Job Market in the UK and Europe
Changing Trade Dynamics and Their Ripple Effect
The global economy has become increasingly interwoven, and trade tariffs imposed by the United States are having far-reaching consequences — especially across the UK and Europe. Tariffs on products ranging from steel and aluminium to aircraft components and even cheese have created tension in transatlantic trade.
These tariffs were initially introduced during the Trump administration, and although some have since been eased, future changes remain possible. According to the House of Lords Library, analysts fear that increased protectionism could limit UK exporters’ ability to compete in the US market, potentially affecting jobs tied to export-heavy industries.
Sectors Most Exposed to Tariff Impact
The BBC recently reported that UK exporters have faced difficulties selling to the US despite existing trade agreements due to ongoing tariff uncertainty and regulatory divergence. Sectors like food, drink, and engineering-heavy industries such as automotive and aerospace have all been subject to increased costs and bureaucracy.
Some of the most heavily affected sectors include:
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Automotive & F1 Supply Chains: Tariffs on car parts and manufacturing tools disrupt supply lines. This makes it harder for European-based teams and manufacturers to operate globally.
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Aerospace & Aviation: UK and EU aerospace companies exporting to the US often face higher production costs, impacting hiring and investment in R&D.
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Engineering & Defence: Projects reliant on global partnerships are increasingly exposed to delays and budget overruns when cross-border sourcing becomes expensive or restricted.
Impacts on the Job Market
As tariffs and other trade barriers increase uncertainty, hiring plans are affected. Businesses may pause recruitment or relocate manufacturing to avoid penalties. This creates two key outcomes:
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Reduced demand for export-facing jobs in sectors like aerospace, automotive, and advanced manufacturing.
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Increased hiring in trade compliance, supply chain strategy, and localisation roles as companies adjust operations.
The Lords Library briefing highlights the risk of retaliatory tariffs and reduced foreign investment, both of which would have downstream effects on employment. It’s a dynamic employers and job seekers must monitor closely.
Navigating the Shifting Landscape
Companies that act now can turn disruption into opportunity. By adapting supply chains and hiring for resilience, businesses can secure a competitive edge. Roles related to regulatory compliance, international logistics, and procurement are seeing increased demand.
For technical professionals, this opens new career paths — especially for those with international experience or multilingual capabilities. For employers, it’s essential to engage with recruitment partners who understand the nuances of global trade and technical recruitment.
At VHR, we specialise in helping businesses hire highly skilled professionals in challenging, fast-changing environments. Whether supporting the Aerospace and aviation, F1 and automotive, or Engineering and defence sectors, we offer recruitment solutions designed to adapt to global trends and future-proof your workforce.
Explore our services for the Aerospace sector here.
What’s Next?
The future of UK-US trade remains uncertain. If further tariffs are introduced or reinstated, businesses will need to remain flexible — adjusting sourcing strategies, market focus, and workforce planning.
While political change in the US could bring a shift in policy, as seen in the partial easing of tariffs under President Biden, many experts suggest that protectionist policies may persist. For UK and EU companies, preparing for multiple scenarios is essential — and talent will be at the heart of that adaptability.
