US Liberation Day: 195 Countries hit by new wave of reciprocal tariffs

US Liberation Day, 2nd April 2025

So Liberation Day came at last and, as expected, it sent shockwaves across the globe, hitting hard stock markets, which according to Statista, had their worst day since 2020 last week. With the latest announcements, many experts are now saying ‘economic depression is no longer a possibility but a probability’.

Trump’s 'Fair and Reciprocal Trade Tariff Plan’ introduced a base line tariff of 10% on all imports on the 2nd April, with certain markets facing much higher rates effective from the 5th April. See below:

So, what are the US Tariffs impacting UK Trade?

1. 20% Tariff on Industrial Goods from the EU. Effective from 9th April 2025

• This includes a broad range of manufactured and semi-finished goods.

• Likely to affect UK exporters in machinery, electronics, chemicals and intermediate manufacturing components.

• Whilst goods from Northern Ireland will be covered by the UK’s 10% tariff, if the EU decides to retaliate with higher tariffs for US goods and the UK does not, Northern Ireland, which is part of the EU’s customs territory for imports, will have to implement the EU rate. This would mean consumers in Northern Ireland paying more for US goods than customers in the rest of the UK.

2. 25% Tariff on Automotive Exports. Effective from 3rd April 2025.

• Directly hits UK car manufacturers and suppliers of automotive parts.

• Particularly impacts brands with US operations or exports like Jaguar Land Rover and Mini.

3. 10% Baseline Tariff on All Imports. Effective from 9th April 2025.

• Even if not specifically targeted, all UK-origin goods now face a minimum 10% tariff unless exempt.

• This raises general costs for UK food and drink, pharmaceuticals, textiles and luxury goods.

4. Tariff Exemptions

Key sectors exempt from the new tariffs include:

o Products already under previous tariff regimes, eg steel (25%) and aluminium (10%).

o Some energy products

o Certain rare minerals not available domestically in the US

What are the Key Aspects of the Fair and Reciprocal Tariff Plan?

1. Country-Specific Tariffs: Tariffs are tailored to individual countries, reflecting the US administration's assessment of each nation's trade practices. For instance, the European Union faces a 20% tariff on industrial goods, including a 25% levy on automotive exports.

2. Exemptions: Certain products are exempt from these new tariffs, notably those already subjected to previous tariff actions, such as steel, aluminium, vehicles and vehicle parts. Energy products and specific minerals unavailable domestically in the US are also excluded.

3. Reciprocity Principle: The plan is predicated on achieving "fair and reciprocal" trade relations, targeting not only tariff disparities but also non-tariff barriers like subsidies and regulatory requirements imposed by trading partners.

But what these new tariffs will effectively mean for UK traders?

The introduction of these tariffs could lead to several scenarios affecting UK businesses:

1. Direct Impact on Exports: The overall cost of exporting goods to the US will increase, potentially reducing competitiveness in the American market. Although in some cases it could become more competitive

2. Indirect Effects via Supply Chains: UK companies integrated into supply chains that involve countries facing higher US tariffs may experience disruptions or increased costs, even if the UK itself is not directly targeted. So if you are importing goods from any of the impacted markets, unless these go under significant transformation in the UK, when exported to the US, you may not be able to claim UK origin and therefore will be hit with the tariffs imposed to those markets.

3. Global Trade Tensions: The escalation of trade barriers could dampen global economic growth, affecting demand for UK exports worldwide.

A snap poll carried out between 10 am Friday and 4pm on Saturday by the British Chambers of Commerce received over 600 responses, revealed the extent to which UK companies expect the US tariffs will impact them:

• 62% of UK firms with trade exposure to the USA say they will be negatively impacted by US tariffs, compared with 41% with no exposure 

• 32% of firms with trade exposure to the USA say they will increase prices in response to the tariff 

• 44% of firms with exposure to the USA say the UK should seek to negotiate a closer trade relationship with the USA, and 43% want closer trade with other markets 

• Just under a quarter (21%) think the UK should impose retaliatory tariffs 

Sources: The Guardian, Politico, The Times, The British Chambers of Commerce

Need guidance?

• If you are are UK business in need of guidance and support, please do not hesitate to contact us. For further information and guidance on how to mitigate the risk, we have created a FREE guide for traders which is available to download in our Resources Section/ How to Guides here.

  
  

• Join us on 24th April in our Chambers Trade Academy Webinar/ bitesize lunch session as we invite policy experts and adviser to provide insights on the US tariffs and tips on how companies can mitigate risks and manage uncertainty. This is a free session and open to members and non-members.

• Visit DBT's New US Trade Tariff support page

  
  

• Have your say ! We are keen to understand the extent in which these tariffs are impacting businesses in Greater Manchester and beyond, which will help us with our policy and representation work voicing the most urgent concerns from our members and business community in our region. We are calling business leaders to complete this 5-min survey!

• Lastly, help us understand the how businesses in Greater Manchester and beyond think these tariffs will impact their business. Answer this anonymous snap poll!

What has been the impact so far to your business of the imposition of US tariffs?

• Substantially Negative
• Somewhat Negative
• None
• Positive

See All Options