Last updated: 16/04/2025
Donald Trump's second term as US President has shaken the trading world, with huge tariffs announced against almost every country.
With these tariff announcements, businesses face constant uncertainty, making it difficult to understand costs and conduct long-term planning. Understanding which goods are affected, when tariffs take effect, and whether exemptions or retaliatory measures apply is a time-consuming task.
Here we will outline clear and concisely the latest information on US import tariffs, and our recommendations for trading with the US for the months ahead.
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Latest information on US import tariffs
Tariffs against all nations
On 2nd April, President Donald Trump unveiled tariffs to be implemented on every nation trading with the USA. The tariffs unveiled were a minimum baseline of 10%, but in many cases much higher. For example EU goods were tariffed at 20%, whilst UK goods only 10%.
However, on April 9th, the day many of the tariffs were implemented, Donald Trump announced all the tariffs above 10% would be brought down to 10% for 90 days, except for China.
Many countries are facing the baseline 10% tariff, including:
- Argentina
- Australia
- Brazil
- Colombia
- El Salvador
- New Zealand
- Saudi Arabia
- Singapore
- Türkiye
- United Arab Emirates
- United Kingdom
Many countries are facing a more aggressive tariff, based on the fact US goods face barriers to trade, according to the White House. Some of these countries are:
| Country/Trading Bloc | Tariff Rate |
| Cambodia | 49% |
| China | 145% |
| European Union | 20% |
| Japan | 24% |
| South Africa | 30% |
| Taiwan | 32% |
| Thailand | 36% |
| Vietnam | 46% |
However, note these higher tariff rates have been paused for 90 days, except in the case of China.
These tariffs, including the 90 day pause, do not impact Mexico and Canada, who have already been targeted with tariffs, which this article discusses later.
The reason China is still facing 145% tariffs is because a "lack or respect" according to Donald Trump. China has repeatedly retaliated to US tariffs, meaning that US exports into China are subject to 125% reciprocal tariffs. China has promised to "fight to the end" in what is now a full fledged trade war between the world's biggest 2 economies.
The measures from the White House are a result of an investigation conducted by the new administration, detailed here, which took several factors into account when deciding what tariffs to impose on other nations:
- Tariffs imposed on U.S. products.
- Unfair taxes, such as value-added taxes, affecting US businesses and consumers.
- Non-tariff barriers, including subsidies and regulatory requirements hindering US businesses abroad.
- Policies causing exchange rate deviations detrimental to the US.
- Any other practices limiting market access or fair competition.
"These are unprecedented times across the entire industry and its not always easy to predict what's to come next. There has been a flurry of activity in President Trump's first few weeks alone which has been hard to keep track of. I do anticipate to continue to see more executive orders issued in 2025."
Kimberly Roddy, LCB, CCS, Customs Compliance Manager, WTA
Exemptions from the US tariffs
There are very limited exemptions from the US tariffs, but in some cases they do apply. A full list of the commodity which are exempt from the Liberation Day tariffs announced on April 2nd can be found here. Please note other duty rates may apply for these products, they are only exempt from the Liberation Day announcement.
That list includes books and published materials, a significant omission. However it's important to highlight hardcover book imports to the US from China are still subject to the 7.5% section 301 tariff introduced in 2018.
Furthermore, as announced on April 12th, smartphones, computers and some other electronic devices have been exempted from the tariffs imposed by the US administration.
In relation to the tariffs on steel and aluminium (discussed in this article later), products are exempt when the product being imported into the US was made from steel that was originally melted and poured in the US. Or from aluminium that was smelted and cast in the US.
Tariffs on cars
As of 26th March, President Donald Trump announced a 25% tariff to be levied against all car imports into the USA. The tariff will apply to all car parts, as well as finished vehicles. It's a move which further widens a growing trade war between the USA and major trading partners.
The latest round of tariffs are due to come in on April 2nd. Mexico, South Korea, Japan, Canada and Germany are the nations set to be most impacted, as the largest car exporters to the USA. However, it's likely many more nations will see consequences due to the complex nature of vehicle supply chains.
German authorities have said they will "not give in" and that Europe must "respond firmly" to the news. Meanwhile, France has labelled the move "very bad news."
US car companies are also likely to be impacted. Many have operations in Canada and Mexico, established under the longstanding free trade agreement.
Tariffs on Mexico and Canada
25% tariffs on all Mexican and Canadian products heading to the USA were introduced on March 4th. According to Donald Trump it came as Canada failed to crack down effectively on illegal fentanyl imports. Meanwhile, Mexico is being accused of that and a failure to tackle illegal immigration.
However, by March 6th, Trump had signed some exemptions to products moving between the countries.
Carmakers were the first to be spared the 25% tariffs, which Mexican President Claudia Sheinbaum thanked Trump for. Now companies moving goods which fall under the US-Mexico-Canada agreement (USMCA) will not be subject to tariffs.
An official from the White House stated that this means about 50% of US imports from Mexico and 62% from Canada may still face tariffs. The exemptions are in place until April 2nd.
The 25% tariffs had initially been announced on February 1st 2025, but were delayed for 30 days after last minute negotiations from both the Canadian Prime Minister and Mexican President.
In response, former Prime Minister Justin Trudeau announced Canada will be implementing 25% tariffs against $155 billion of American products. Starting with $30 billion worth of goods immediately, and the remaining $125 billion on March 21st.
Canada's finance minister has since said that the country would hold of the majority of these tariffs following the delay from Donald Trump.
However, the incoming Prime Minister Mark Carney was bullish in his tone regarding tariffs after his election. In his opening speech, Carney vowed to win the trade war against the USA.
"Donald Trump thinks he can weaken us with his plan to divide and conquer... the Canadian government has rightly retaliated and is rightly retaliating with our own tariffs which will have maximum impact in the United States and minimum impact here in Canada... My government will keep these tariffs on, until the Americans show us some respect."
Incoming Canadian Prime Minister, Mark Carney
Tariffs on steel and aluminium
On February 9th, Donald Trump announced a 25% import tax on all aluminium and steel imports into the US. These were implemented against original steel products and derivatives on March 12th. They apply to every country trading with the US.
In response to these specific tariffs, the EU is to implement 25% tariffs on a range of US goods, including include maize, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss.
Prime Minister Keir Starmer said "all options are on the table" but that the UK is taking a pragmatic approach as it pushes for a trade deal with the US.
The agreements for special duty rates of steel and aluminium imports from Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine, and the UK have all been terminated.
US / China tariffs in more detail
China has repeatedly retaliated to US tariffs against them. The first round of which, a 10% tariff on all imports into the US came on February 10th, then another 10% followed on March 4th. China's response to both of those was a targeted response against specific products.
However when Donald Trump announced a further 34% tariff on April 2nd, China matched it. Since then in little over a week, tariffs between the nations have repeatedly escalated to now sit at 145% for Chinese exports into the US and 125% for US exports to China.
This is completely unchartered territory. Not in the globalised era has the world seen such aggressive tariff rates between the world's largest economies.
Alongside this, from May 2nd, Chinese goods will be removed from the de minimis exemption on imports into the US. It means from that date, shipments under $800 will be charged at 90% of the value or $75 per item, with the $75 moving to $150 on June 1st.
Chinese were briefly removed from the de minimis exception in February, until Trump paused the removal after just a few days. The law typically allows shipments under $800 to enter the US duty-free and is hugely significant for the air freight sector specifically. Tens of millions of e-commerce, apparel, and consumer goods are shipped from China to the USA via air freight, as part of this rule.
If moving goods between China and the USA, you should prepare for more disruptions, cost adjustments and reassess sourcing strategies.
US / UK tariffs in more detail
Following the visit of UK Prime Minister Keir Starmer on February 27th, US relations with the UK appeared to warmer than most others. Donald Trump not only reiterated that he doesn't think the US will need to impose tariffs on the UK. But went even further than that, stating a trade deal could happen "very quickly".
However, the announcement on April 2nd has contradicted those comments, as the UK was subject to 10% tariffs. This tariff rate remains the same for the 90 day pause, which does not impact countries who already faced the baseline 10% rate.
It's believe negotiations are continuing over some form of trade deal, but there is no clarity on what that will look like, or a timeline for negotiations or implementation.
US / EU tariffs in more detail
The EU has been hit with 20% tariffs, however these have been delayed for 90 days. For the next 3 months, US tariffs against the EU have been brought down to 10%, in line with every other country apart from Canada, Mexico and China.
It's claimed the tariffs are an attempt to address the "$300bn" trade deficit that exists between the EU and US. Whilst there is a significant trade deficit, official figures show this is closer to $161 billion on goods, but actually a trading surplus on services.
"They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products."
Donald Trump, US President
Advice for shippers with US import tariffs
Ensure you have a valid proof of origin
When import tariffs into the US are regularly being announced, it's never been more vital to ensure you have proof of origin for your products. You may need to provide clear and verifiable proof of origin to benefit from preferential trade agreements or to avoid incoming tariffs that shouldn't be levied against your goods. If you cannot prove tariff-free status, the authorities may impose tariffs which should not apply to your goods, regardless of their place of origin.
When exporting to the US, acceptable documentation includes a Certificate of Origin, which UK businesses can explore more about here, but every country has their own system for acquiring these. Manufacturer’s declaration and supplier invoices detailing raw material sourcing can also be valid forms of origin proof.
Re-evaluate the use of incoterms and your risk exposure
Given the unpredictability of new tariffs, shippers should review their incoterms to clarify who bears the financial burden of duties and taxes. Under DDP (Delivered Duty Paid) terms, exporters assume tariff risks, which could result in unexpected cost increases.
Whilst terms like EXW (Ex Works) or FOB (Free on Board) terms mean the burden is on the buyer, mitigating exposure to sudden tariff spikes, it might mean they request a return to the negotiating table on price.
Contract renegotiation may be necessary, particularly for long-term supply agreements. Be wary of tariff-related clauses in contracts.
Strengthen contingency planning and trade lane diversification
With tariff policies subject to sudden changes, reliance on a single trade route, supplier or customer increases risk.
Shippers should evaluate alternative sourcing and transit options, including for example bonded warehouse utilisation. If you are reliant on Chinese manufacturing, it may be beneficial to consider dual-sourcing strategies in Southeast Asia or Latin America to maintain supply chain resilience.
Evaluate your exposure as part of a detailed import strategy. Keeping multiple customs brokers engaged can also help navigate regulatory shifts efficiently.
Remain informed of news and announcements
Following the news and staying informed of developments of new tariffs is the best way to maximise the amount of time you have to react to changes and mitigate. Announcements are almost always in the public domain via the press, before being officially announced.
Engaging with a knowledgeable freight forwarder, with in-market US expertise, is a great way to limit the impacts of tariffs. Following newsletters such as WTA's weekly Market Update and the Freight Rate Forecast provide regular operational and political insight into the situation.
