In line with the changes that have just been announced by the United States Government, below is some further information and guidance for our members, advising them on the tariffs being imposed on imports into that jurisdiction.
Please note that this information is correct at time of writing, but this is a fluid situation and tariff rates may change at short notice.
Also, it is known that some countries, for instance Israel and Japan have reached out to the United States Government with a view to obtain reduced duty rates.
On 2nd April 2025, President Donald Trump issued an executive order (EO), “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” which applies a reciprocal tariff of 10 percent on all imports into the U.S., pursuant to the International Emergency Economic Powers Act (IEEPA). These will take effect on 5 April 2025.
Additionally, the 10 percent global tariff will increase to various amounts between 11 and 50 percent for countries identified in Annex I of the EO. These 57 countries will be subject to increased reciprocal tariffs (instead of the 10 percent Global Tariff), based on a Trump Administration determination of nonreciprocal or discriminatory trading practices. These will take effect on 9 April 2025.
Some countries and trading blocs have been targeted for having high tariffs and running large trade surpluses with the country. These face additional tariffs (selected countries only):
• European Union 20%
• China 34%
• Japan 24%
• India 26%
• Israel 17%
• South Korea 25%
• Switzerland 31%
• Thailand 36%
• Vietnam 46%
The 25 percent tariffs on imported cars, authorized under Section 232 of the Trade Expansion Act of 1962 (Section 232 Tariffs), went into effect on 3 April. The 25 percent Section 232 Tariffs on imported steel and aluminium, in effect since 12 March remain in effect.
Additionally, goods subject to Section 232 Tariffs are not subject to the Global Tariff or increased Reciprocal Tariffs. It is unclear how this exception applies for steel and aluminium derivatives. Annex II of the EO lists products that are exempt from the tariffs. This list is extensive and includes, inter alia, minerals and pharmaceuticals. The EO also ends the de minimis exemption for goods valued at less than $800 from China and Hong Kong, effective on 2 May 2025.
The response of the UK Government has been not to impose reciprocal tariff, instead it has launched a consultation https://www.gov.uk/government/news/uk-seeks-business-views-on-response-to-us-tariffs in order seek business’ views on these matters. The UK government has been negotiating with the US administration on a trade deal for some time, although these will have increased importance.
For the most part the response from UK businesses has been mixed – some sectors such as pharmaceuticals may not be adversely affected, whilst others such as Jaguar Land Rover have paused exports to the USA to assess the impact of the 25% tariff on cars and parts.
Individual members trading with the USA should consider what additional steps they can take. The best source of information may be their US offices and agents, to understand the impact of these tariffs on imports. Like Jaguar Land Rover it may be appropriate to liaise with exporters to establish whether or not they wish their goods shipped to the USA.
BIFA would like to thank CLECAT for their assistance in preparing this item.
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