Trump's trade tariffs will make US poorer again, warns British business boss

Donald Trump's restrictive trade tariffs will make the US poorer again - the exact opposite of what he seeks to achieve - a British business boss warned.

Cambridge-based Goodfellow, which makes specialist metals, recently bought Potomac Photonics based in Baltimore, Maryland, in a sign UK manufacturing and exports were booming.

The deal saw it expand in the medical device sector, making materials of micron-size that cannot be seen with the naked eye.

But company chief Simon Kenney issued the White House a reality check, saying: "As a net exporter of scientific materials from the UK to more than 60 countries worldwide, our customers rely on the smooth flow of our specialist materials for essential research and industry development. Many of these sectors are subject to supply chain constraints and the new US tariffs will only exacerbate these challenges.

"The stark reality is that this could lead to price increases for US customers and potentially reduce our competitiveness against domestic suppliers. However, in many cases, these same suppliers are also likely to be importing their materials, so the net effect will just drive-up costs for all consumers.

"Rare materials - critical to scientific innovation - often come from a limited number of global sources and any disruption caused by tariffs or trade restrictions could create bottlenecks for research and industry.

"Increased costs may also push businesses and research institutions to seek alternative materials or solutions, and this may impact demand patterns."

The business, a global supplier of advanced materials and metals, is located at a state-of-the-art HQ in Huntingdon employing 105 people in the UK and a further 95 across sites in Europe, Asia and the US.

Mr Kenney said: "Our US business, Potomac Photonics, exports high-precision components. If the UK or EU impose retaliatory tariffs, this could raise costs for our subsidiary. We are already seeing increased demand from our EU customers anticipating these changes and trying to get ahead of the curve for any potential price increases.

"In short, the potential for escalating tariffs threatens collaborative research and development efforts between UK and US institutions.

"All these tariffs are doing is introducing uncertainty into the market, which reduces businesses capability and willingness to plan for the long-term. This means investment will be put on hold and we are likely to see inflation and slower growth.

"While we may seek to review our supply chain for larger orders, we are unlikely to make investment in the US due to the current uncertainty - the complete opposite of what President Trump is expecting to happen.

"We would urge both the UK and US governments to prioritise open trade for scientific and high-tech industries, which are important for medical, aerospace, clean energy and military research."