Key Tariff Updates

Universal Tariff
A flat 10% tariff now applies to all imports into the United States, effective immediately. The UK is not exempt from this measure.

UK-Specific Tariffs
The existing 25% tariff on UK-origin automobiles, steel and aluminium remains in effect and is now compounded by the new 10% universal tariff.

Country-Specific Tariff Increases

China: 34% additional (bringing the total to 54%)
Vietnam: 46%
Cambodia: 49%
Bangladesh: 37%
European Union: 20%
Japan: 24%
South Korea: 25%
India, Indonesia, Taiwan, and others: 26–36%

End of De Minimis Threshold
Effective May 2, the $800 duty-free exemption for imports from China will be eliminated, disrupting cross-border eCommerce flows.

Implications for UK Importers & Exporters

Rising Costs & Supply Chain Challenges
UK companies importing from Asia and re-exporting to the U.S. could face substantial cost increases, particularly where tariffs now exceed 40%.

Margin Pressure for U.S. Buyers
U.S. importers may seek price adjustments or supplier renegotiations due to elevated costs.

Knock-On Effects for UK Manufacturers
Even businesses not directly trading with the U.S. may feel the impact via increased raw material costs stemming from the blanket 10% tariff.

Automotive Sector Under Pressure
The combined 35% tariff (10% universal + 25% sector-specific) poses a serious threat to UK automotive exporters and parts suppliers.

Retaliatory Risks
In response, key economies – especially in Asia and the EU – are considering countermeasures, which may further disrupt trade routes and create additional volatility.

EU Reaction & Market Shifts

• Possible EU Retaliation: The European Commission has indicated potential counter-tariffs that may escalate transatlantic trade tensions.
• Increased Competition: Asian manufacturers may reroute exports to Europe, intensifying competition – particularly in consumer goods and fashion.

We are actively tracking these developments and will continue to update you as more information becomes available.

If you’d like to explore how these changes might affect your business, or would like support in navigating the implications, please contact us.