President Trump's global tariffs and tariffs war update
Andrew Thurston · Posted on: April 10th 2025 · read
It’s all change again as President Trump confirmed yesterday evening that the ‘Reciprocal Tariffs’ he announced on the 2nd April 2025 are paused for all but the following instances detailed below.
China
The President has announced two recent amendments to the original Executive Order implementing tariffs on Chinese imported goods.
This is in response to earlier reciprocal tariff measures implemented by China (of 84%), which itself was in retaliation to the ‘Liberation Day’ tariffs.
In the most recent amendments, issued on 8th and 9th April, the tariff applied on Chinese origin goods increased from 34% to 84% and is now set at 125%.
Clarification on the tariff was issued later in the day confirming that the 125% was actually additional to the 20% already in place for Chinese goods as provided under a separate Executive Order. The full tariffs on Chinese goods in 145%.
The removal of low-value import relief, which was originally imposed in February, and quickly re-introduced, is currently due to expire on 2nd May 2025. As we have witnessed this week, this is potentially open for change and will depend on how any talks between the US and China progress.
Worst-case scenario starting 2 May 2025, any imports of Chinese goods into the US (not posted direct from China) will be subject to significant tariffs. Due to the uncertainty surrounding the possible direction of this ‘Tariff War’, overseas exporters must consider how they plan to manage its US sales and import activities.
Mexico and Canada
Due to the President’s ongoing concerns over the pre-existing supply chains between the US and these two countries, the reciprocal tariffs will continue to apply for commodities that do not qualify as ‘originating’ under the USMCA free trade agreement.
All other countries
For all countries, the 10% baseline Tariff will continue to apply, but the reciprocal tariffs will be paused for 90 days.
For UK originating products, the situation is status quo as the UK was only subject to the baseline tariff.
For an EU originating product exported to the US, the pause means the applicable tariff will be 10% (down from 20%).
On 10th April, the EU announced a 90 day pause on its own countermeasures, which had only been agreed the previous day, to allow for negotiations to take place between the EU and US.
Utilising US Bonded Warehousing or Free Trade Zones
One potential option is to make use of a Bonded Warehouse or Free Trade Zone (FTZ) to import products into the US under ‘duty suspension’. This would allow for the tariffs to be waived on imports whilst they remain within the FTZ or bonded warehouse procedures.
These mechanisms may provide flexibility in reacting to any changes in the tariffs as stock will be in the US and can be removed as soon as a change occurs. It is likely that, due to a surge in demand for their facilities, the costs of storage may reduce any tariff saving benefits but the flexibility it provides may be worth considering.
Need tailored advice
Given the fluidity of the current trade landscape, we strongly recommend reviewing your supply chain exposure and considering contingency options, including FTZ or bonded warehousing to mitigate tariff risk.
Contact our Customs team to discuss how these changes may affect your operations and how best to plan your next move.
