

HOW WILL THE NEW U.S. TARIFFS AFFECT NORTHAMPTONSHIRE AND MILTON KEYNES BUSINESSES?
Q: When are the new tariffs being introduced?
A: Existing duties on steel and aluminium remain in place. However, new tariffs are being rolled out rapidly. As of 3rd April 2025, a 25% tariff on motor vehicles is now live. Within the next month, these will extend to include a wider range of car parts.
From 5th April 2025, a standard 10% tariff will apply to most UK products exported to the U.S.
Q: Which products are affected by the 10% rate?
A: The 10% tariff applies broadly across UK commodity codes, with exceptions for sectors already under specific tariffs—like steel, aluminium, and automotive goods.
Q: Are there any exemptions?
A: Yes. The pharmaceutical, semiconductor, energy, and critical minerals sectors are currently exempt. Copper is also temporarily excluded while an official market review takes place. The findings, due 22th November 2025, may lead to tariffs being applied afterward.
Q: Should we expect more changes?
A: Yes. Further tariffs are expected from 9th April 2025, as the U.S. evaluates differences between trading partners. The measures announced on 2nd April 2025 may also be adjusted—updates will follow as soon as possible.
Q: Will businesses face multiple tariffs on the same goods?
A: The UK is not subject to tariff stacking. A product will either fall under the 10% rate or a sector-specific tariff—not both. However, goods from China will face cumulative tariffs, currently rising to 54% (34% on top of an existing 20%).
Q: Where can we check the tariffs on our products?
A: The detailed legal text will be published in the Federal Register following the latest executive order. A link will be shared once available.
Q: Is the de minimis threshold still in effect?
A: For UK exports, yes—low-value shipments are still exempt under current rules. However, this rule no longer applies to Chinese goods, which are now taxed regardless of value.
HOW CAN BUSINESSES IN NORTHAMPTONSHIRE & MILTON KEYNES RESPOND?
Review your U.S. contracts and incoterms
Clarify responsibilities and risks in your trade terms. Understanding incoterms is essential to assess potential impacts.
Double-check your product classifications
Make sure your product codes are accurate to avoid being wrongly taxed. Misclassification is not a valid defence.
Explore new markets
Consider targeting other regions—especially those under free trade agreements like the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), which offers 99% tariff-free access across 11 countries.
Seek introductions and finance support
If your business or a supplier is experiencing financial strain, contact us for help connecting with UK Export Finance or the British Business Bank for support options.
Understand your supply chain and processing
If you claim UK origin to benefit from lower tariffs, ensure your goods meet origin requirements. Adequate processing must take place in the UK. We can assist with audits and issue UK certificates of origin when needed.
Participate in the UK Response to the US tariffs
Businesses are being invited by the Business and Trade Secretary Jonathan Reynolds to participate in a response. More information is available here.