The Treasury has temporarily cut tariffs across 89 foreign goods, including builder’s products, which it says will save businesses “at least” £17m a year.    

Chancellor Rachel Reeves (pictured) has suspended import tariffs on a range of products, which will see their charges cut to zero until July 2027. 

Included in these reductions are plywood and builder’s plastics, “which are essential for construction – making life easier for chippies all over the country,” said the department on Sunday. 

The measure is in line with the government’s drive to build 1.5 million homes over the next five years. 

The move comes after the latest S&P Global UK Construction PMI index reported that building inflation costs hit a 26-month high earlier this month. 

The policy comes after US President Donald Trump imposed 10% blanket tariffs on all goods exported by countries into the US. 

Trump has separately imposed a 25 per cent tariff on all steel, aluminium and car imports to the US.

The Treasury along with the business department said other products included in the UK’s tariff reductions are aimed more directly at consumers, such as “pasta, fruit juices, coconut oil and pine nuts could be passed onto consumers just in time for the summer season, meaning lower food prices in supermarkets, restaurants and pubs”. 

Business and trade secretary Jonathan Reynolds said: “As we face a new era of global trade, this government is going further faster to make Britain the best country to do business, delivering on our plan for change.

“These suspensions are just another example of that.”

Reeves also announced a £20bn increase in government-backed financing capacity at the weekend to help companies contend with the new global trade environment.

This includes funding for agency UK Export Finance to expand support for British businesses, with small businesses also able to access loans of up to £2m through the British Business Bank’s growth guarantee scheme.