Can Autonomy Survive Trumps Tariffs?
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Written by Elaine Obika
October 2025
The Autonomy Principle (hereinafter AP) and Strict Doctrine of Compliance (hereinafter SDC) are often treated as doctrinal fortresses - immune to external interference, politically neutral and commercially reliable. [1] But Trump’s 2025 tariff regime exposed their fragility. [2] When trade becomes politicised, can these principles function as intended?
Trumps “Liberation Day” strategy imposed sweeping tariffs on 60 countries, including the UK. A 10% baseline duty was introduced, alongside 25% sector-specific tariffs on steel and cars exceeding quota thresholds. These measures were not just economic, they were political tools used to leverage immigration policy, [3] drug enforcement [4] and diplomatic pressure. [5] [6]
This shift destabilised the commercial terrain the AP and SDC rely on. Documentary credits are meant to operate independently of the underlying sales contract. Banks honour them based on the documents alone not on the performance of the contract or the legality of the goods. [7] SDC reinforces this by requiring exact compliance with credit terms – no discretion, no deviation. [8]
But tariffs disrupt this neutrality. They alter cost structures mid-transaction, raise questions about origin and classification and introduce regulatory scrutiny that makes even technically complying documents appear “unclean”. Banks caught between doctrinal obligation and commercial risk, may hesitate to honour credits that now carry political baggage. [9] [10]
The UK’s response was strategic restraint. [11] Rather than retaliate, it pursued quota negotiations and diplomatic engagement. Some businesses criticised Starmer’s approach, fearing it signalled weakness. [12] But legally, this restraint helped preserve the operational integrity of AP and SDC within English law. By avoiding escalation, the UK allowed its banks to continue honouring credits without politicising their obligations.
Other jurisdictions chose differently. China [13] Canada and EU [14] imposed counter-tariffs asserting sovereignty and challenging unilateralism. [15]
So, can AP and SDC survive Trump’s tariffs?
Doctrinally, yes. Functionally, it is being stress-tested. [16] The AP and SDC remains standing – but their insulation from political risk now looks more like strategic hope that legal certainty. [17] English law’s response suggests that AP and SDC are not untouchable ideals, but the most realistic anchors in an increasingly politicised trade landscape.
REFERENCES
[1] Power Curber International Ltd v International Bank of Kuwait [1981] 1 WLR 1233 [1241] (Lord Denning MR); Equitable Trust Co of New York v Dawson Partners Ltd (1927) 27 LIL Rep 49 [p52] (Lord Sumner); Moralice (London) Ltd v ED and F Man [1954] 2 Lloyds Rep 526 (McNair J); J H Rayner & Co Ltd v Hambros Bank Ltd [1943] 1 KB 37 [p 40] (Mackinnon LJ); Uniform Customs and Practice of Documentary Credits (UCP) 600 article 5; The Doctrine of Strict Compliance: Its Development and Current Construction’ in Francis D Rose (ed), Lex Mercatoria: Essays on International Commercial Law in Honour of Francis Reynolds (LLP 2000).
[2] Dr Linda Yeuh ‘Expert Comment: Why Has Trump Launched So Many Tarrifs and Will it Cause a Recession?’ 4th April 2025 University of Oxford – News and Events < https://www.ox.ac.uk/news/2025-04-04-expert-comment-why-has-trump-launched-so-many-tariffs-and-will-it-cause-recession > accessed 11th September 2025.
[3] Voices ‘Trumps Tariffs, Threats Fir Growing Global Phenomenon: Hardball Migration Diplomacy’ 3rd February 2025 UPI < https://www.upi.com/Voices/2025/02/03/migration-diplomacy-tariffs-trump/8921738593235/ accessed 11th September 2025.
[4] Silobreaker Research Team ‘Trumps Use of Tariffs for Foreign Policy Leverage’ 10th September 2025 Silobreaker < https://www.silobreaker.com/blog/cyber-threats/trumps-use-of-tariffs-for-foreign-policy-leverage/ .> accessed 11th September 2025.
[5] Silobreaker Research Team ‘Trumps Use of Tariffs for Foreign Policy Leverage’ 10th September 2025 Silobreaker < https://www.silobreaker.com/blog/cyber-threats/trumps-use-of-tariffs-for-foreign-policy-leverage/ .> accessed 11th September 2025.
[6] Jennifer Clarke ‘What Tariffs Has Trump Announced and Why?’ 3rd February 2025 BBC News < https://www.bbc.co.uk/news/articles/cn93e12rypgo > accessed 11th September 2025.
[7] Indira Carr and Peter Stone International Trade Law (Sixth Edition, Routledge 2018) 464.
[8] Stefano Ferrero ‘Some Considerations On The Doctrine of Strict Compliance And The Autonomy Principle in Documentary Credit’ (2013) Vol 25 Business Jus < https://www.businessjus.com/wp-content/uploads/2014/05/Some-considerations-on-the-doctrine-of-strict-compliance-and-the-autonomy-principle-in-documentary-credit.pdf > accessed 6th September 2025.
[9] Costas Milas ‘Trump’s Tariff Wars and Their Impact and their Impact on the UK Economy in Five Graphs’ 24th March 2025 London’s School of Economics < https://blogs.lse.ac.uk/businessreview/2025/03/24/trumps-tariff-wars-and-their-impact-on-the-uk-economy-in-five-graphs/ > accessed 11th September 2025.
[10] Anita Hawser ‘Trade Finance to Rebound Despite Tariff Uncertainty, Say Experts’ 11th February The Banker < https://www.thebanker.com/content/4d6a1e51-59b2-488b-aeef-97a4f65948e6 > accessed 11th September 2025.
[11] BBC News ‘Trade War Should Not be UK’s First Response to Tariffs’ 2nd April 2025 BBC News’ < https://www.bbc.co.uk/news/articles/c4grm90119xo > accessed 11th September 2025.
[12] Mille Cooke and Archie Mitchell ‘Starmer Scrambles to Secure Deal To Escape Trump’s Tariffs’ 13th March 2025 INDEPENDENT < https://www.independent.co.uk/news/uk/politics/trump-tariffs-keir-starmer-trade-deal-b2714293.html > accessed 11th September 2025.
[13] Stephen McDonnell ‘Why Beijing Is Not Backing Down On Tariffs’ 11th April 2025 BBC News’ <https://www.bbc.co.uk/news/articles/cjew7y4j724o .> accessed 11th September 2025.
[14] Francoise-Charles Lepravote, Wanjie Lin and Kimia Vaye ‘The EU’s Latest Response to Trump II Tariffs’ 16th April 2025 CLEARLY GOTLIEB < https://www.clearytradewatch.com/2025/04/the-eus-latest-response-to-trump-ii-tariffs/ > accessed 11th September 2025.
[15] Jacqueline Howard edited by Emily McGarvey ‘Major US Stocks See Biggest Losses Since 2020 After Trump’s Tariff Announcement’ 2ndApril 2025 BBC News < https://www.bbc.co.uk/news/live/c1dr7vy39eet > accessed 11th September 2025.
[16] Nicholas Bloom, Philip Bunn, Paul Mizen, Veenaa Sasikaran, Krishan Shah, Gregory Thwaite and Ivan Yotzov ‘The Impact of the US Tariff Announcements on UK Firms 27th July 2025 VOXEU < https://cepr.org/voxeu/columns/impact-2025-us-tariff-announcements-uk-firms > accessed 11th September 2025.
[17] Jun Du and Oleksandr Shepotylo ‘Tariffs and Triumph: The UK’s Edge in a Fractured World’ < https://www.aston.ac.uk/research/bss/research-centres/business-prosperity/fractured-world > accessed 11th September 2025.
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