U.S. Tariffs: Customer Advisory

On 2 April, President Trump launched a landmark trade overhaul that imposes a 10% tariff on all imports into the United States from 5 April.

While this may appear to target U.S. trade imbalances, it has immediate knock-on effects for UK businesses—from cost pressures to supply chain shocks and shifting global competition.

A 10% blanket tariff applies to all countries, including the UK.
Tariffs on countries like China, Vietnam, Cambodia, and Bangladesh now reach 34–54%.
The U.S. is ending the $800 duty-free threshold for imports from China, significantly impacting B2C eCommerce logistics and airfreight demand.
The 25% tariff on foreign-made autos remains in place, raising concerns for UK automotive exporters and parts makers.

UK exporters will now find their U.S. customers under new cost pressures – which may see them reduce volumes, push for discounts, or seek domestic alternatives.

Brands that rely on Asian production for goods headed to the U.S. face mounting costs and operational headaches.

Domestic manufacturers are also vulnerable. Many rely on U.S. produced components or globally sourced materials that are now subject to tariffs.

The risk of price-driven dumping into the UK could impact local margins and inventory strategies.

While the UK is not immediately responding, Brussels is expected to introduce retaliatory tariffs in response. The outcome may further fragment international trade, with UK companies caught between blocs.

Businesses reliant on smooth flow between the U.S. and EU should start planning for added friction.

In Perspective

Not always an added cost: These new tariffs replace existing duties. For example, if a product already incurs a 5% duty, the actual increase is 5%, not 15%. This makes the change less severe than it might first appear.
Low-cost countries still competitive: Despite increased tariffs, production in countries like Vietnam and Bangladesh may still be more cost-effective than U.S. manufacturing.
No substitute for specialised goods: Products under copyright, or those requiring specialised manufacturing, cannot easily be relocated.
Exporting opportunities: UK manufacturers could become more attractive as a lower tariff source.

What Next

Reassess Supply Chains: Identify exposure to high-tariff countries, especially if goods transit through the U.S. or rely on U.S.-based components or partners.
Prepare for Cost Changes: Anticipate adjustments to landed costs and pricing strategies. Engage early with suppliers to explore cost-sharing or alternative sourcing.
Monitor for Retaliation: Be alert to EU and UK policy shifts that could either mirror or respond to the U.S. measures.
Watch for Dumping Risks: Be aware of the potential for market saturation as exporters redirect goods, especially in fashion, household goods, and footwear.

We are closely monitoring the situation and will keep you updated as further developments emerge—particularly in relation to UK trade policy adjustments.

Please don’t hesitate to reach out if you’d like to discuss your supply chain, explore alternative strategies, or assess your risk exposure.