U.S. tariff shake-up: Challenges and opportunities ahead

On 2 April, President Trump announced sweeping new tariffs that will significantly reshape global trade.

These changes represent the most substantial overhaul of U.S. tariff policy in decades, with immediate implications not only for U.S. trading partners but also for businesses worldwide - even those that don’t directly export to America.

A new 10% baseline tariff will now apply to all imported goods entering the U.S., effective immediately. While the UK is subject to the 10% rate, the EU faces a 20% blanket tariff.

Targeted country tariffs

Additional duties have been imposed on several key sourcing countries, including:

• China: 34% (total 54%)
• Vietnam: 46%
• Cambodia: 49%
• Bangladesh: 37%
• Japan: 24%
• South Korea: 25%
• India, Indonesia, Taiwan and others: 26–36%

End of de minimis

As of 2 May, the U.S. will eliminate the $800 duty-free threshold for low-value imports from China, which will be a major blow to cross-border eCommerce and air freight demand.

Strategic Implications for UK and EU Businesses

With tariffs up to 54% now applied to many Asian and global suppliers, UK and EU-made goods could become relatively more cost-competitive in the U.S. market. This could present growth opportunities for local manufacturers—particularly those producing high-quality or specialised goods.

Consider a shift to DDP shipping

As costs rise and margins tighten, exporters may wish to explore changing Incoterms to Delivered Duty Paid (DDP). This can simplify transactions for U.S. buyers and reduce friction in negotiations. Logicall has the infrastructure and expertise to support clients with DDP shipping models into the U.S. and other global destinations.

Industry-Specific Considerations

As costs rise and margins tighten, exporters may wish to explore changing Incoterms to Delivered Duty Paid (DDP). This can simplify transactions for U.S. buyers and reduce friction in negotiations. Logicall has the infrastructure and expertise to support clients with DDP shipping models into the U.S. and other global destinations.

Fashion & Retail:
Brands that source from Asia and re-export to the U.S. may face serious cost hikes and supply chain disruption. Simultaneously, Asian producers could begin diverting goods to the UK and Europe, creating price pressure and increasing the risk of dumping.

Automotive:
Though not called out in detail, the 10% baseline tariff applies to all products, and a separate 25% tariff on imported vehicles remains. This could impact both component exporters and those using U.S. parts in European production.

eCommerce:
The removal of the de minimis rule from China will complicate logistics for those platforms and SMEs who previously relied on duty-free thresholds to deliver cheap goods to U.S. consumers.

How to Respond

We recommend that clients:

• Review supply chain exposure to high-tariff jurisdictions, particularly for goods touching the U.S.
• Recalculate landed costs and re-evaluate pricing and sourcing strategies accordingly.
• Monitor political responses from the UK and EU, as retaliatory tariffs or trade barriers could emerge.
• Watch for signs of product dumping in the UK and EU, particularly in fashion, homewares, and consumer goods.
• Explore alternative delivery models, including the use of DDP, to stay competitive and reduce complexity for U.S. buyers.