New US tariffs take hold but transatlantic trade sees fresh opportunity
As the US implements a sweeping new tariff regime this month, global trade enters a period of heightened complexity, yet also fresh opportunity, particularly for businesses positioned to benefit from the US–EU trade agreement that came into force on 1 August.
The country‑specific tariff system, set out under a far‑reaching executive order, is designed to adjust duty rates according to each nation’s trade balance with the US. Those that purchase more US goods than they export will face tariffs of 10%, countries with small surpluses will be subject to 15%, while higher duties apply to nations with larger surpluses. Some strategic exporters, such as Taiwan, Canada, India, and Switzerland, will see significantly higher rates.
The order aims to reshape US trade relationships, shifting from a model focused on efficiency at all costs towards one centred on “balanced” trade. It will also apply additional penalties of 40% on goods determined to have been transhipped to avoid duties, with limited scope for appeal. Every six months, the US will publish a list of countries and facilities linked to alleged circumvention.
Goods withdrawn for consumption from 7 August will be subject to the new rates, while shipments already in transit before 5 October remain exempt. Countries without agreements face the full tariff schedule, but the US has indicated that further negotiations may quickly lead to adjustments.
While the policy aims to strengthen domestic manufacturing and raise revenue, its introduction has already unsettled financial markets and added pressure on US businesses. Many report declining profits and are planning price increases to offset the impact, though a lag in pricing changes means some could lose competitiveness in the short term.
A brighter outlook for transatlantic trade
Against this challenging backdrop, the US–EU trade agreement represents a rare point of stability. The deal establishes a 15% baseline tariff, replacing many higher pre‑existing rates, and is supported by major bilateral investment commitments.
Key benefits include:
• Immediate tariff reductions on cars, pharmaceuticals, semiconductors, and high‑value manufacturing inputs.
• Zero tariffs on aircraft, selected chemicals, agri‑products, and raw materials.
• Strategic commitments on energy imports, defence procurement, and mutual investment flows.
For UK businesses, the deal offers the ability to integrate into EU‑based supply chains and gain tariff‑advantaged access to the US market, particularly in automotive, chemicals, renewable energy, and aerospace sectors. While legal challenges to the US executive order are ongoing and may continue into the autumn, the structured nature of the US–EU framework provides a valuable platform for planning and investment.
Trade confidently in a shifting landscape with logicall
Our experts will guide you through the complexities of the new tariff landscape; from compliance and classification to optimising sourcing strategies and transit planning. Our global network and deep regulatory expertise ensure your supply chain remains agile, competitive, and compliant.
Talk to our team today to optimise your US and EU trading strategies.