In light of the news yesterday evening from Donald Trump and the US Government, we wanted to reach out to you to provide an update surrounding the situation and the potential impact the new tariffs imposed will have on your business. The US Government has announced a 10% tariff on goods imported from the UK into the US, the new tariff will go live from 05/04/2025, while this figure seems high, the UK got the joint lowest tariff rate of any country – with the EU receiving 20% tariffs, China received 34% tariffs, Japan got 24% and India 26%. The UK received what Trump called the “baseline” tariff on all countries – with about 20 countries receiving the same treatment. In plain terms this means a 10% tax will be charged on all UK products imported into the US. National statistics indicate the majority of UK shippers who export to the US operate under FOB or CFR Inco terms, this leaves the importer or customer in the US responsible for any additional duties implemented. Prior to the new tariffs, most UK goods exported to the US were imported with tariff rates of at least 6%, with this in mind the increase to 10% doesn’t seem as detrimental as mainstream media are indicating, however UK shippers that operate under DDP terms are urged to consider the inflated tariff percentages when pricing their products. We have no doubt the new tariffs will impact UK-US trade, however regardless of what political pressures there are the US cannot develop a new manufacturing process overnight, there will still be a requirement for imports and the initial impact will be felt most by US consumers and importers.
In terms of the impact on US goods being imported into the UK, at present, information surrounding this is scarce. The UK Government is yet to announce any reciprocal tariffs, our latest information indicates Sir Kier Starmer will take a calm approach in considering any retaliation. In President Trump’s speech he presented a chart indicating what tariffs are supposedly already imposed on the US and what he described as his “reciprocal” tariffs, within this chart he indicated that the UK currently impose a 10% tariff on US goods and services, our research indicates this figure is false. Furthermore, should the UK government decide to implement reciprocal tariffs we believe these will be targeted at specific commodities to reduce the impact on UK consumers, for example products such as porcelain, ceramics and sanitary ware which are not produced in the UK would be less likely to see increased tariff rates on imports.
While the unpredictable behaviour of the US president causes uncertainty across the globe, we’re hopeful the UK Government will utilise its strong and historic cross Atlantic relations to ensure a trade agreement is reached in the near future, while also maintaining strong relations with the EU. In an ever evolving world of international trade please be assured we at Banks & Lloyd are working around the clock to ensure limited impact to our trade avenues and to ensure you are kept fully up to date on any potential changes to duty rates on UK imports and exports to the rest of the world. If we can answer any questions or provide you with any advice and guidance, please feel free to reach out to one of the team