President Trump has announced sweeping tariffs that will have the biggest impact on worldwide countries to date, but there is some light for UK importers.
From 5th April, the UK will be one of a number of countries that’s products will be subject to a new 10% base tariff. Others include Australia, Argentina, Brazil, New Zealand, Saudi Arabia and Singapore.
However, several trading partners will be subject to much more severe tariffs from April 9th, including the below:
- European Union: 20%
- China: 54%
- Cambodia: 49%
- Japan: 24%
- South Africa: 30%
- Taiwan: 32%
- Thailand: 36%
- Vietnam: 46%
Canada and Mexico will not be subject to new tariffs, having been targeted previously.
The 10% tariff will come as a blow to UK exporters, who have already seen their landed costs rise due to an 8% swing in the USD exchange rate during recent weeks.
When Trump took up office in January, the GBP/USD exchange rate was 1.217, but this has now risen to 1.316.
The exchange rate movement does offer a little light for UK importers. Products from the US, and from anywhere that goods are bought in USD, are now around 8% cheaper since Trump’s second term began, and the same can be said for ocean freight costs that are fixed in dollars.
For further information, or to discuss any concerns about shipments enroute to the US, please do not hesitate to contact your Westbound representative.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
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