Xeinadin supports clients across the UK and Ireland who are heavily involved in both importing and exporting goods. Whatever the tariff situation the UK and Ireland faces and it’s fair to state that the situation remains quite “fluid” our network of specialist business advisors is here to offer practical support and insight.
Xeinadin is able, through its membership of the Praxity Global Alliance, an association of independent accounting and advisory firms, to connect its UK and Irish clients with expert business support across the globe. This network is particularly valuable currently as our clients deal with the reality of exporting goods into the United States (US).
How did we get to where we are now?
In April 2025, the US administration announced the implementation of US tariffs under the US International Emergency Economic Powers Act for countries across the world. From 5th April, a 10% baseline flat rate tariff was announced on all non-US goods being imported into the US. On 9th April 2025, further tariff rate increases were announced for countries throughout the world, however the UK remained at the 10% rate.
UK-US Trade Agreement
On 8th May 2025, the UK and US agreed the general terms for the Economic Prosperity Deal which came into effect on 30th June 2025. The agreement aimed at easing tariff barriers and strengthening bilateral economic ties between the two countries. Whilst falling short of a full free trade agreement, the agreement represents a strategic shift in transatlantic trade cooperation by focusing on specific sectors. The agreement introduces significant tariff reductions on key UK exports and expands market access for select US goods within the UK.
Whilst the 10% baseline tariff remains on most goods entering the US, the key agreements are:
- Automotive Sector: The US reduced tariffs on British car imports from 27.5% to 10%, applicable to up to 100,000 vehicles annually.
- Steel and Aluminium: Tariffs on UK steel and aluminium exports to the US currently set at 25% are being negotiated under a metals trade deal which, if agreed, could see tariffs drop to zero however talks around the metals trade deal are still ongoing.
- Aerospace Industry: The US removed 10% tariffs on UK aerospace products, including engines and aircraft parts, enhancing competitiveness for UK aerospace companies.
- Agricultural Imports: The UK agreed to increase import quotas for US agricultural products, allowing up to 13,000 tonnes of beef and 1.4 billion litres of ethanol annually. Notably, the UK’s ban on hormone-treated beef remains in place.
- Pharmaceuticals: The agreement includes provisions for preferential treatment of UK pharmaceuticals, with discussions on NHS drug pricing deferred for future negotiations.
- Digital Services Tax: The UK has committed to reviewing its digital services tax, addressing US concerns about its impact on American tech companies.
Impact for UK exporters
The US is the UK’s largest export market for goods, with cars the UK’s most valuable export to the US. Cars have since seen tariffs reduced to 10% from the 25% rate initially announced on US exports. Currently pharmaceuticals and metal trade deals are being negotiated. Should a metals trade deal be agreed the UK could see a 0% tariff compared to the 50% metals tariff certain other countries are subject to.
Higher US prices could reduce demand for these items and UK exporters are likely to face increased costs due to tariffs extending to UK products with links to international supply chains.
Whilst the UK has currently remained at the 10% baseline flat rate for exports to the US following the increased rates announced on 9th April 2025, other major trading partners of the US such as the EU, Japan and Vietnam have seen steep rises with rates between 20% and 54% for those trading partners.
The implementation of tariffs for UK exports into the US creates a significant impact for UK businesses along with the potential for businesses to benefit from the trade deals which see lower tariffs compared to other countries. Where US businesses currently rely on EU suppliers, attention could be turned to the UK to explore options with UK businesses as a cheaper alternative for US supplies.
The British Chambers of Commerce released a publication in April withing their Trade Confidence Outlook which is a survey comprising of over 1,800 UK SME exporters. The survey highlighted that only a fifth of SME exporters saw increased overseas sales in Q1 2025, which more than a quarter of SME exporters saw a decline in export sales and just over half had seen no change in overseas sales.
Steps UK businesses can take to manage for these challenges
The evolving US tariff landscape demands proactive measures. There are a range of actions UK businesses to prepare for changes and potential extra costs. These suggested actions include:
- Staying informed of any changes to tariffs by monitoring US trade policy changes and announcements over the next few weeks to determine any further tariff changes such as the metals trade deal
- Review and adapt supply chain to determine any vulnerability to tariff increases and consider whether the business should be diversifying its export markets by supplying to countries with more favourable tariff treatments such as existing free trade agreements with the EU
- Review and renegotiate existing pricing agreements and contacts and seek to insert clauses into these agreements to address tariff fluctuations
- Explore tariff mitigation strategies such as free trade agreements and foreign trade zones
- Review customs valuations methods to ensure accurate declarations are made and any non-dutiable costs are excluded
Where could this lead?
UK businesses can attempt to start mitigating risks by taking proactive steps to be able to adapt to the changing US and global trading conditions whilst maintaining compliance. There are a multitude of issues to consider regardless the size of a business.
Fortunately, we can provide valuable insight from our Praxity network colleagues in the US from the International Tax team at Plante Moran. Kellie Becker – our International Tax Partner colleague there – has shared their thought leadership content to ensure our clients obtain direct insight into the views from across “the pond” on strategies to cope in such uncertain times.
Perspective on global trade policy | Our Insights | Plante Moran
Xeinadin clients from across the UK and Ireland can be assured that through the expertise of our UK and Irish advisers and the access that we can provide to support across the globe on trade and tax matters you have the support to help your business navigate the complexities of US trade tariffs and to assist you in making the best decision for your business.
