On 2 April at 16:00 ET, President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to:
- impose an additional 10% tariff on top of existing US duties, fees and taxes on all imports from all trading countries, including the UK. This will come into effect on 5 April at 00:01, and
- Impose increased country-specific additional tariffs on those countries deemed to be the “worst offenders” (which does not include the UK) on 9 April at 00:01. Countries singled out for higher tariffs above the 10% baseline include China (34%), the EU (20%), Japan (24%) and India (26%). The existing 25% tariffs on Canada and Mexico remain in place, subject to USMCA adjustments.
The Executive Order also contains modification authority, allowing President Trump to: `) increase the tariff if trading partners retaliate; or 2) decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters.
Some goods will not be subject to the above additional tariffs. These include steel and aluminium articles, and autos/auto parts which are already subject to Section 232 tariffs; copper, pharmaceuticals, semiconductors, and lumber articles; all articles that may become subject to future Section 232 tariffs; and energy and other certain minerals that are not available in the United States.
For more information, click here: https://www.great.gov.uk/markets/united-states/us-trade-tariffs/
