In the past week, several significant developments have emerged that are poised to impact UK exporters and importers. Below is a comprehensive overview of these International Trade news updates:
U.S. Imposes Sweeping Tariffs Affecting UK Trade
On April 3, 2025, former U.S. President Donald Trump announced the implementation of a universal 10% tariff on all U.S. imports, with additional reciprocal tariffs ranging from 20% to 50% based on trade imbalances. This move has raised concerns among UK exporters, particularly in the manufacturing, agriculture, and automotive sectors, due to potential disruptions in supply chains and increased costs.
Key UK exports such as whisky, pharmaceuticals, and automotive parts are expected to face significant price hikes in the U.S. market, potentially leading to reduced demand. British businesses reliant on U.S. suppliers may also encounter increased import costs, forcing them to adjust pricing strategies or seek alternative markets. The UK government has expressed disappointment but is currently holding off on immediate retaliatory measures. Business Secretary Jonathan Reynolds emphasized the importance of maintaining composure and pursuing negotiations to mitigate the tariffs’ impact. Meanwhile, UK businesses are being advised to assess their exposure to U.S. tariffs, explore alternative trade routes, and engage with industry bodies for guidance on potential government support.
UK Considers Retaliatory Tariffs in Response to U.S. Trade Measures
On April 3, 2025, the UK government initiated a formal process to potentially impose retaliatory tariffs against U.S. goods. This action comes in response to former U.S. President Donald Trump’s imposition of a 10% tariff on UK imports, with an additional 25% specifically targeting automobiles. The Department for Business released a 417-page list of American products that could face UK tariffs, including meats, dairy, whiskey, motorcycles, and clothing, targeting high-profile brands like Jack Daniel’s and Harley-Davidson. Business Secretary Jonathan Reynolds emphasized that retaliation would only occur if negotiations fail, stating, “We are initiating this process to ensure the UK retains all options, should a trade agreement with the U.S. not be reached.” The UK government is consulting with businesses through to 1st of May for feedback on these potential measures.
Impact and Actions for UK Traders Regarding Potential UK Measures in Response to U.S. Tariffs
The UK government is seeking input from businesses on potential measures in response to recent U.S. tariffs on UK goods. If countermeasures are introduced, UK traders may see retaliatory tariffs on American imports, affecting supply chains and pricing. Businesses that rely on U.S. exports should assess potential cost increases and explore alternative markets. Traders are encouraged to submit feedback via the government consultation link before the deadline. Engaging with trade associations and reviewing supply contracts can help mitigate risks associated with future tariff changes.
Guidance can be found here: Request for input on potential UK measures in response to US tariffs – GOV.UK
CDS Update 4.6.3.1 – Actions to Take
Please be advised of an upcoming update scheduled on the 9th of April 2025. The CDS service will be available for use during this update.
Release 4.6.3.1 will deliver:
- New validation functionality for several Document Codes & Additional Procedure Codes
- Add new Country Codes
- Goods Location Code amendments
- Exemption Status Codes changes
In order to avoid declaration rejections for shipments arriving on or after 9th of April, all declarations should be pre-lodged according to the shared guidance.
For detail on the update please see the attached document: Release-4.6.3.1-Guidance-for-traders-250425.pdf
Transition of Tariff Suspensions to Measure Type 112
Effective April 14, 2025, HM Revenue & Customs (HMRC) is altering the management of certain tariff suspensions in the UK Customs Tariff. Measures currently set as a 103 – Third country duty with an additional code suspension (such as COVID and Business suspensions) are transitioning to measure type 112 – Autonomous tariff suspension. This change affects commodities where the suspension is currently delivered via an additional code combined with a footnote. Importers should review the specific tariff headings impacted and ensure that the appropriate document codes (9Y11, 9Y12, 9Y15) are used in declarations to benefit from the applicable suspensions.
For further details see: Tariff Stop Press Notice – 14 March 2025 – UK Integrated Online Tariff
If any of these issues affects your company and you wish to seek guidance, support or training to help navigate these turbulent times then please do contact Exporter Services.
