US Tariff Information & Updates for UK Manufacturers
Latest update - 05.08.2025
At the beginning of August, the US Administration had announced a series of new tariff measures and rules. The changes confirmed the modifications to the US “reciprocal” tariff rates for named countries; a S232 announcement on copper; ‘trade deals’ with trading partners including the European Union and changes to the De minimis rules for small parcel posting to the US.
In summary
- Reciprocal tariffs entry-into-force: Entry into force date will be 6 August 2025. There is an exception for products in transit prior to that date. In addition, products currently stored in US-based customs warehouses have a deadline of 5 October 2025 to be withdrawn for consumption.
- Changes in reciprocal rates: India tariff rate is 50% (6 Aug) through suspended for 21 days; Switzerland tariff rate raised to 39% despite ongoing talks; Mexico is paused for a further 90 days for more talks; Canada is set at 35% for non-USMCA goods; Brazil raised to 40%
- Non-listed countries: Where a country has not been specifically listed, they have been set 10% baseline tariff for exports to the US.
- Tariff stacking: Current tariff stacking continues for products covered by other US tariff measures including Section 232 tariffs on steel and aluminium, automotives, copper, etc.
- Deals: EU-US announced an ‘agreement in principle’ on tariff reduction measures and other trade access improvements. Full details awaited, and talks will be scheduled to finalise terms. On Tariffs, detail confirms for EU-origin products if a US MFN tariff is less than 15%, then a 15% tariff will apply. Whereas if the US MFN tariff is 15% or above, then the “reciprocal” tariff will not apply. Other details on EU-US can be provided. Other deals announced: Japan, Indonesia and the Philippines.
- Transhipment: For products determined to have been transhipped to evade “applicable duties”, an additional 40% tariff will be applied as well as imposing any other “appropriate fine or penalty”.
- S232: Announcement on S232 investigation into copper; 50% from 1 August. Tariff lines of derivative and semi-finished products has not yet been published. Further measures on new copper derivatives will be set by early November.
- De minimis: New measures announced following suspension of de minimis treatment for products from China and Hong Kong into the US. Now applied is an independent suspension of de minimis for: Canada, Mexico, China (and Hong Kong) and on a global basis. This will apply to all goods shipped outside the global postal network from 29 August 2025. For imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties. For goods shipped through the international postal system, packages will undergo one of the following methodologies: Ad valorem duty or Specific duty.
- Future measures: US Administration can amend the reciprocal duty rates once the trade deals with those countries listed have been concluded.
External Links
US Federal Register: The Federal Register (FR or sometimes Fed. Reg.) is the official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices. It is published every weekday, except on federal holidays. The final rules promulgated by a federal agency and published in the Federal Register are ultimately reorganized by topic or subject matter and codified in the Code of Federal Regulations (CFR), which is updated quarterly.
https://www.federalregister.gov/documents/current
US Customs and Border Protection: CBP takes a comprehensive approach to border management and control, combining customs, immigration, border security, and agricultural protection into one coordinated and supportive activity.
https://www.cbp.gov/trade/programs-administration/trade-remedies
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service
Harmonized Tariff Schedule: The Harmonized Tariff Schedule of the United States (HTS) sets out the tariff rates and statistical categories for all merchandise imported into the United States. The HTS is based on the international Harmonized System, which is the global system of nomenclature applied to most world trade in goods.
White House
https://www.whitehouse.gov/news
https://www.whitehouse.gov/fact-sheets
.Gov.uk
US tariff changes updated
Check new taxes on imports to the US using the Check duties and customs procedures for exporting goods service on GOV.UK.
https://www.business.gov.uk/export-from-uk/markets/united-states/us-trade-tariffs
https://www.gov.uk/world/organisations/department-for-business-and-trade-in-the-usa?lang=en-gb
UK-US Economic Prosperity Deal
In May, the Economic Prosperity Deal agreed between the UK and the U.S. sets out high-level trade commitments and opportunities for further negotiation. A series of implementing measures is described in Executive Order 14309 dated 16 June 2025 “Implementing the General Terms of the United States of America-United Kingdom Economic Prosperity Deal”.
As of 30 June 2025, elements of the deal have been agreed and ratified. There has been no change to the baseline ten per cent tariff for UK origin goods entering the US market, except for aerospace.
The 10 percent tariffs have been reduced to zero for aerospace goods which fall under the WTO Agreement on Trade in Civil Aircraft such as engines and aircraft parts.
UK Automotive manufacturers now have a tariff relief quota, allowing the sector to sell up to 100,000 vehicles to the US at a 10 percent tariff rate, including MFN duty.
Progress towards zero percent tariffs for core steel products continue to be discussed, but there is no further information on an Aluminium and Steel deal at this stage.
All measures will be kept under review by the US administration.
Statement by Stephen Phipson, following announcement of economic deal between the United Kingdom and United States:
“Industry will welcome this announcement which is a recognition that the Government was right not to overreact and pursue a mature, calm, and pragmatic approach to negotiations. This has paid dividends by providing immediate relief to some of our most important and strategic manufacturing sectors which provide many thousands of highly skilled jobs, which will now be protected. The Business Secretary should be applauded for taking a realistic approach and, playing a leading role at such an uncertain time politically and economically.
“To build on today’s very positive announcement, we now need to see a comprehensive and forward-looking industrial strategy that strengthens the UK's domestic manufacturing resilience, boosts the skills supply, increased infrastructure investment, and enhances our export competitiveness. By building on this momentum, Government and industry together can unlock the full potential of UK manufacturing and drive sustained economic growth."
External References
US
https://www.whitehouse.gov/fact-sheets/?s=UK
UK
Check new tariffs on imports to the U.S. using the ‘Check Duties and Customs’ procedures for exporting goods service on GOV.UK.
https://www.gov.uk/check-duties-customs-exporting
We encourage all our members to refer to the information provided which will be frequently updated. We ask that firms remain in close contact with suppliers, customers and intermediary advice services such as customs agents, brokers, and other logistics providers, for details pertinent to individual export and trade activity with the US and other export markets.
This is a volatile and developing global situation, and we remain in close contact with the UK government to assist with relevant analysis and responses.
Steel and Aluminium
The EPD has commitments to confirm a tariff rate quota for UK exports of aluminium and steel, as well as derivative steel and aluminium products. US statements in mid-June stated that the US “shall design and establish a tariff-rate quota for steel articles and derivative steel articles that are products of the United Kingdom, consistent with the General Terms and the purpose of this order.”
As of 4 July 2025, the details of this tariff rate quota are yet to be determined, however, leaders of both countries have confirmed they are “progressing towards 0% tariffs on core steel products”.
On 3 June 2025, the Executive Order (EO) stated imposing an additional 25% duty on steel and aluminium imports into the U.S. (bringing the overall rate to 50%). The UK was exempted from this additional rate. However, the EO states that from 9 July 2025 onward, the U.S. may increase the tariff rate on UK exports of steel and aluminium if the UK has not complied with relevant aspects of the EPD.
Pharmaceuticals
The EPD states that both countries “intend to promptly negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients.” However, this is expressed to be contingent on the UK’s compliance with supply chain “security requirements,” as well as the findings of the U.S. Section 232 investigation into the effects on U.S. national security of imports of pharmaceuticals and pharmaceutical ingredients (a power under the Trade Expansion Act of 1962, which may result in increased tariffs on imports of such products). The EO issued on 16 June 2025 reiterates this but does not provide any further details.
Northern Ireland
Confirmation that the US and European Union (EU) have concluded with a trade and tariff framework that exports from the EU that were at a temporary 10%, will be increased to 15% (with an MFN rate below 15%) or will stay above 15% (if the MFN rate is above this figure) starting from 1 August 2025.
This trade and tariff framework replaces the previously proposed potential 30% tariff by the US that was set to take effect on 1 August 2025.
The 15% tariff applies broadly across EU goods imported into the US. Tariffs on steel imports will remain at 50% until a new separate deal is agreed.
Which US products in your supply chain might face new tariffs?
The potential for the EU to apply retaliatory tariff measures from August had the US-EU trade and tariff framework not been agreed, has at the moment resided. However, businesses should consider the US products that will be impacted and prepare for the potential new customs duties on imports to the EU should the position change. Under the Windsor Framework, imported goods subject to EU trade defence measures will be automatically “At Risk” and any EU tariffs will be payable on import to Northern Ireland.
The situation remains fluid, so it is advisable to regularly review official US government trade announcements and EU Commission updates for the latest details or specific product impacts.
How can the Customs Duty Waiver Scheme help your business?
You may be able to claim a waiver for goods brought into Northern Ireland so that you do not have to pay duty on those goods.
NI companies may be able to offset the cost of any additional tariffs using the Customs Duty Waiver Scheme.
General Questions to consider
The application of trade tariffs to export to the US will cause complexity on global trade and uncertainty on how long they will last and their longer-term impact on the UK economy, international economies and for trade dynamics.
UK businesses need to assess the implications and think through new commercial, trading, and financial strategies in what remains a highly fluid situation.
Impact on UK exports
Tariffs on US imports will lead to higher US prices being paid by importers and therefore increased prices for US consumers. This could have an immediate impact on the timely processing of goods through the US border affecting receipt with importers and customers. It could impact on the demand for UK exported goods.
Supply chain challenges
Increased costs on UK goods/components could also be seen as other countries' exports to the US that include UK content, will be affected by the tariff measures and the cost push through around the wider international supply chains. UK businesses relying on materials from China, India, Brazil, Mexico, and Canada, as well as those other countries with higher rates imposed could see cost increases, affecting manufacturing and demand for US goods.
Financial liquidity could have an impact on supply chain stakeholders, if an economic slow-down impacts on banking trends and appetite for risk. UK businesses should maintain as maximal view of their supply chains as possible to reduce the risk of disruption, in the event of decreased appetite for lending.
Currency & investment
International sentiment and unpredictability in currency and money markets particularly towards the US dollar, will affect the pound and other global currencies, impacting import costs and export competitiveness. UK firms with US operations should keep close observance on the impacts this could bring on heightened revenue and investment uncertainties.
Immediate questions and steps for UK businesses
The US tariff landscape demands immediate measures to be considered and some quick hints.
Keep informed
Monitor US, UK, EU, and other key nations (i.e. China, Canada, Mexico) trade policy changes and announcements. The position will remain fluid over the next few weeks as countries and economic blocs respond to the US tariff announcement.
Consider and respond to impact on your supply chains. Trade data will be a useful resource to help understand potential tariff impacts on specific products and materials.
Review and adapt your supply chain
- Assess supply chain vulnerabilities to the tariff increases. Undertake an initial impact analysis and start to model cost and demand drivers.
- Consider supply chain diversification by sourcing with countries that have more favourable tariff treatment.
- Increase companywide supply chain visibility to identify known or potential disruptions. A key focus on your main producers or manufacturers and assessment of the impact on them.
Renegotiate contracts
- Review commercial and trade contracts with suppliers and incorporate clauses addressing tariff fluctuations.
- Consider force majeure clauses for significant tariff changes, allowing for renegotiation or termination.
- Explore shifting tariff responsibility to suppliers through modified terms of sale.
- Explore tariff mitigation strategies.
Tariff analysis
- Analyse product classifications and explore modifications to potentially qualify for lower tariff rates.
- Free trade agreements (FTAs): despite the changes to US tariff policy, options to see/use benefits from reduced or zero-rated tariffs. FTA rules of origin compliance essential.
- Foreign trade zones (FTZs): Consider utilizing FTZs for potential duty deferral, reduction, and increased supply chain efficiency.
Optimise customs valuation and compliance
- Accurately classify your goods for US import: review customs valuation methods to ensure accurate declarations and exclude non-dutiable costs.
- Goods origin calculations: consider revising goods origin calculations and valuation procedures to the US, to ensure compliance and minimise ‘over statement’ of tariff amounts.
- Trade compliance: engage trade compliance experts to navigate complex regulations and ensure accurate documentation.