April 13, 2025
AGI News
In early 2025, the global trade landscape underwent significant upheaval as the United States, under President Donald Trump’s administration, implemented a series of aggressive tariff measures. These actions, commonly referred to as the Trump Tariffs or Trump Trade Tariffs, were aimed at addressing perceived ‘trade imbalances’ and bolstering domestic industries. However, they have had far-reaching implications for international commerce, affecting UK businesses engaged in transatlantic trade and dealing with US-UK tariffs.
Understanding the new US tariffs
The recent tariff initiatives represent a substantial shift in US trade tariff policy, underpinned by a resurgence in economic nationalism. These US tariffs are among the most comprehensive seen in decades and are being accompanied by further targeted measures that affect certain nations and sectors disproportionately.
Key developments include:
- A universal 10% import duty on all goods entering the US, with higher rates imposed on specific countries and products.
- A 25% tariff on imports from Canada and Mexico, and a 10% tariff on goods from China, with certain energy exports from Canada subjected to a lower 10% rate.
- Additional tariffs targeting sectors such as semiconductors and pharmaceuticals, citing national security concerns.
The administration has positioned these tariffs as a response to “unfair trade practices” and what it considers the erosion of America’s manufacturing base. However, the global response has been swift and, in some cases, retaliatory, with several trade partners (particularly within the EU and Asia) vowing to introduce reciprocal tariffs on American goods.
The ripple effect of these Trump trade tariffs has already impacted global trade flows. Businesses are reassessing sourcing strategies, while customs delays and increased compliance checks are becoming more common across borders.
The uncertainty surrounding how long these US tariffs will remain in effect makes strategic planning difficult for multinational firms. As a result, companies that rely heavily on transatlantic or intercontinental supply chains are being forced to revisit everything from inventory management to supplier diversification.
These developments underscore the need for detailed risk assessments and agile logistics operations. For UK businesses, particularly those exporting goods to or importing goods from the US, understanding the scope and trajectory of the Trump tariffs is essential to remaining competitive.
Implications for UK businesses
UK companies involved in importing goods from the US or exporting to the American market are now navigating a more challenging trade environment. The increased US tariffs can lead to higher costs for imported materials and components, affecting pricing strategies and profit margins. Exporters may face reduced competitiveness in the US market due to reciprocal tariffs and shifting demand dynamics.
British exporters must also consider the regulatory uncertainty brought on by these policies. Shifts in customs procedures, documentation requirements, and inspection regimes can add both time and cost to cross-border trade. This is particularly concerning for SMEs that may lack the resources to absorb or adapt to such changes efficiently.
Historical context and the resurgence of protectionism
The resurgence of protectionist policies is not without precedent. Similar measures were employed during previous periods of economic nationalism. The rationale behind current US trade tariffs draws heavily from the belief that domestic manufacturing has been eroded by decades of globalisation. Advocates of the Trump tariffs argue that such policies protect American jobs and reduce reliance on foreign adversaries.
However, critics point out that the economic repercussions of these policies are often more widespread and detrimental than initially anticipated. For example, during the first Trump administration, studies found that the cost of tariffs was largely passed on to American consumers and businesses. According to a 2019 study by the National Bureau of Economic Research, US consumers and companies bore nearly the entire burden of the $46 billion in tariffs imposed at the time.
US-UK tariffs and the effect on supply chains
The volatility caused by the new Trump trade tariffs has reinforced the importance of resilient supply chains. Logistics professionals and supply chain managers must now re-evaluate their global sourcing strategies with a focus on agility and risk management.
One effective approach is nearshoring, moving production or sourcing closer to home markets. This can help mitigate risks related to cross-border US tariffs, geopolitical instability, and shipping disruptions. Supply chain digitisation and the use of AI and real-time analytics can also improve forecasting and inventory management, offering greater flexibility in response to sudden regulatory changes.
Digital platforms that provide end-to-end visibility are becoming essential tools for navigating this new terrain. By integrating customs compliance tools and tariff calculators, businesses can better understand the cost implications of sourcing from the US in light of recent Trump tariffs.
The role of trade agreements and diplomatic channels
Another critical factor is the evolving nature of trade agreements between the US and its partners, including the UK. The ongoing US-UK tariffs and broader trade discussions have become more urgent in light of the Trump administration’s recently announced universal and targeted tariffs, and while no comprehensive agreement is currently in place, the situation has intensified calls from UK industry leaders and policymakers for a clearer, more predictable trade framework.
Should new US UK tariffs continue or intensify, the impact on bilateral trade could be substantial. According to the UK Department for International Trade, the United States is the UK’s largest single-country trading partner, accounting for 16.6% of total UK exports in 2022. Any long-term deterioration in trade relations would have profound consequences for the automotive, pharmaceutical, and aerospace sectors.
How logistics providers can add value
Amid this uncertainty, we are uniquely positioned to support businesses with strategic insight and operational excellence. From customs clearance services to multi-modal freight solutions, experienced logistics partners can help clients navigate regulatory shifts and manage cost exposure in a world of shifting US trade tariffs. By offering scalable solutions and access to a global network, we make sure that our clients remain competitive even in turbulent times.
Looking ahead: preparing for continued volatility
While some hope that the current trade measures will be temporary or reversed under a future administration, businesses must plan for continued uncertainty. This includes scenario planning and investing in technologies that enhance responsiveness and resilience.
Building contingency into supply chain planning is no longer optional; it is a necessity. As the global trade environment becomes more fragmented due to ongoing US tariffs, companies that can pivot quickly and adapt to new conditions will gain a significant competitive advantage.
The 2025 US tariffs represent more than just a policy shift, they signal a broader move toward economic nationalism and a departure from the post-war era of free trade. For UK businesses, the implications are both immediate and far-reaching.
By understanding the nature and impact of these Trump tariffs and by implementing proactive strategies to build resilient supply chains, companies can weather the storm and position themselves for long-term success. As always, the right logistics partner will be instrumental in navigating these complexities and maintaining business continuity, so why not reach out to our expert team today. And for all of the latest AGI news, don’t forget to follow us on LinkedIn and Facebook!