12 May 2025

Much has happened since our article six weeks ago on the UK US tariff situation– below is a summary but for more detailed information see British Marine’s new International Trade Hub. 

President Trump’s tariffs, announced from the White House rose garden on 2 April, sent the world’s financial markets into turmoil. Since then we have seen implementation of 25% tariffs on all aluminium and steel imports to the US, as well as 25% tariffs on car imports.  The 10% baseline tariffs imports to the US, including on British goods, came into effect on 5 April.  Many nations, although thankfully not the UK, faced the imminent threat of other higher “reciprocal tariffs”  and US China tensions escalated rapidly.  Initially Trump announced a 34% ‘reciprocal tariff’ on Chinese goods but by 12 April that had escalated to 145%.  China retaliated, imposing a 125% tariff on US goods.  With disruptions to the markets and to global supply chains, the IMF downgraded its growth forecast for the UK from 1.6% to 1.1%.  

All the while British Marine has focussed its efforts on defending the interests of the UK marine industry, making repeated calls to the Minister for Trade Policy and Economic Security for the Government to focus its efforts on negotiating down the tariff barriers with the US and look to reduce trade frictions elsewhere, most especially with the European Union – our most important trading bloc.  

These representations have been informed by recent member discussions, including the well-attended member webinar ‘Navigating the new US tariffs ’on 26 April.  Joined by experts from the Chartered Institute of Export & International Trade and officials from the Department for Business and Trade who took back a clear message -  our industry wants the UK to resist imposing retaliatory tariffs and for the Government instead do all it can to free up the movement of goods and reduce the administrative burdens on SMEs seeking to expand their export markets.  To catch up on that webinar and read our Chief Executive’s latest letter to the Minister, dated 6 May, see here.  

Therefore, it’s a relief that the US & China have now agreed to substantially lower their respective tariffs for a 90 day period from 12 May to 30% and 10% respectively.  British Marine also welcomed last week’s limited trade deal with the US as a significant step in the right direction. That deal removes the tariffs on UK steel and aluminium exports to the US and also reduces the tariffs on car exports down from 27.5% to 10%.  However, it is crucial that deal is just the start and negotiations continue to tackle the remaining 10% baseline tariffs and other barriers that impede the growth UK marine exports to North America.  Similarly, our hope is that the forthcoming UK EU Summit will pave the way for frictionless trade with the European Union market which, in spite of Brexit, still accounts for around 45% of all UK marine exports.

We will continue to assess international developments and report significant development on our Trade Hub but would also like to share insights from members adjusting export strategies.  

If you would like to share your views or tips on exporting overseas please contact our Public Affairs lead, Joanna Richardson jrichardson@britishmarine.co.uk Tel 07860 848834.