US tariffs are now a structural feature of the trading environment and will persist. In our conversations with allies around the world, few expect tariffs to return to their prior levels after the next US Presidential election. The UK’s effective tariff rate is among the lowest in the G7, but this is only a comparative advantage in a worse environment. UK firms continue to report ongoing costs and frictions in navigating the US’s evolving regime and UK goods exports to the US have declined in tariff-exposed categories. The complexity of the regime falls disproportionately on smaller firms least able to absorb its impacts and complexities. (Conclusion, Paragraph 23)