Well, it’s official. Washington has dusted off the tariff playbook again. Under President Trump’s new wave of import duties, exporters to the USA are finding themselves facing not just the usual customs hurdles, but a much higher bill at the border.

Cue groans from boardrooms across Europe.

For many exporters, the USA has always been the glittering prize: a huge, wealthy consumer base with a taste for just about everything. But when those prize sales come with hefty tariffs attached, margins shrink faster than your confidence when faced with a 400-page customs form.

Why tariffs matter (and hurt)

A few percentage points here or there may not sound like much, but tariffs stack up. That 10% duty can wipe out your competitive edge, especially if your rivals are producing domestically or sourcing through trade agreements that you don’t qualify for.

It’s not just the money. Higher tariffs also mean more complex paperwork, compliance checks, and the kind of uncertainty that makes CFOs twitchy. No wonder so many exporters are now asking: ‘If not the USA, then where?’.

Look East: The Asian opportunity

The answer may well lie to the east. While the USA builds tariff walls, Asia is busy building trade bridges. Many countries in the region are lowering barriers, signing free trade agreements, and actively wooing overseas suppliers.

Consider this:

• ASEAN (think Thailand, Vietnam, Malaysia, Indonesia) has over 650 million consumers and is increasingly the factory — and the shopping mall — of the world.

• Japan and South Korea are high-value markets, hungry for quality imported goods, often with fewer tariff headaches than the USA.

• India is opening up like never before, with a vast and growing middle class eager to spend on everything from snacks to software.

• China may be trickier geopolitically, but opportunities remain enormous if approached strategically.

In many of these markets, tariff regimes are not only lower but also more predictable than the USA’s shifting landscape. Add in faster growth rates and rising consumer demand, and suddenly the “risk” of Asia looks more like an opportunity.

Don’t go it alone

Of course, entering Asia isn’t as simple as shipping a container and hoping for the best. Each market has its own quirks: regulatory hurdles, business etiquette, and distribution channels that can be a labyrinth for newcomers.

That’s why having people on the ground makes all the difference. At Go Exporting, we have consultants across the region — from Delhi to Tokyo, Bangkok to Seoul — who know the markets inside out. They can help you:

• Identify the most attractive countries for your sector.

• Understand local compliance and consumer expectations.

• Find reliable distributors, partners, and customers.

• Build a market entry strategy that avoids costly missteps.

The smart move

So yes, US tariffs may sting. But they might just be the nudge exporters need to diversify and explore markets where growth is faster, red tape is thinner, and customers are waiting.

After all, when one door slams shut (with a loud Trumpian bang), it’s usually because another — perhaps in Asia — is swinging wide open.

We are passionate about helping you to make the most of the opportunities presented by international business.

We have produced a library of Expert Export Guides available for FREE in our Expert Exporter Resource Hub.

UK retailers with regular direct orders into US markets are set for another period of upheaval as a customs charge threshold is set to be slashed. 

The tariff exemption on imports, known as a de minimis, enables retailers to export orders into a country without incurring duty charges if the value of the order stays below a certain level. 

Up until now, the US had offered one of the more generous de minimis levels, set at $800, compared to $648 in Australia, $181 in the UK, and $174 across the EU (where additional VAT charges are also levied). 

This higher-than-standard threshold from the US has delivered years of innovation from retailers around the world since its introduction nine years ago, enabling them to set their sights on wealthy US consumers with direct-to-consumer sales and little in the way of paperwork and additional taxes. 

Data from the likes of the OECD has demonstrated this has disproportionally benefited SMEs and start-ups by removing the up-front investment required to otherwise sell products into the US. 

In 2021, according to the British Chambers, $5bn of goods from the UK were shipped to the US under the de minimis threshold, with 80% coming directly from e-commerce orders of which fashion accounted for the largest share. 

Globally, almost 14 billion packages worth around $65bn fell under the threshold last year and did not incur a duty charge. 

But it’s not just online retailers with US audiences that will be hit. Giants such as Shein and Temu, and brands that sell through marketplaces such as Amazon and Etsy will also encounter issues. 

When will the change happen, and who will have to pay?

The de minimis threshold of $800 will sunset on Friday 29th August. Shipments from that date of any value will then incur an additional charge ranging from 10% to 50% depending on the category of product. 

Many global postal services, including major EU players, have paused or slowed services whilst they await further clarification from US authorities 

Who pays the charge is a little muddier. Retailers that wish to keep their direct entry into the US market will likely look to swallow some of that cost and save the end customer from having a bill to pay to receive their goods once it lands in the US. 

However, some consumers may end up having to pay the bill themselves, especially from smaller, more niche businesses that may not be entirely up to speed with the legislative change. 

The Royal Mail has said that items sold from the UK into the US worth over $100 (including items sent to family and friends) would likely incur a 10% duty charge.

DHL said in a statement that: “Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out.”

Goods originating from the EU will likely be hit by the same 15% tariff as was agreed between the bloc and the US in their new trade agreement. 

Long-term, it may push more international sellers to look towards State-side distribution hubs to accept and ship orders from within the US market. This is more aligned with the ultimate aim of the Trump administration – to bring jobs and manufacturing to the US, and raise significant revenues on sales from abroad.

Short term, consumers in the US can expect increased prices, whilst businesses around the world will be faced with increased bureaucracy, delays, and costs. 

How do tariffs affect world trade, and how can you best mitigate them?

Join Go Exporting CEO Mike Wilson for a special Lunch and Learn with Enterprise Nation, where you will learn what tariffs are and why they’re in the news right now, their impact on your business and global trade, and how to manage tariffs and the effect of trade agreements.

If you feel that your expansion plans are on hold until trade turbulence subsides, you want to know how to mitigate some of the negative impacts of tariffs or even how to capitalise on the opportunities they can deliver – then this is the webinar for you.

Join us for free on Tuesday 29th July from 12pm here – https://www.enterprisenation.com/find-something/lunch-and-learn-navigating-the-new-trade-tariffs/

Business Secretary Jonathan Reynolds has said an impending trade agreement between the UK and India marks a ‘historic day’ for Britain. 

The deal is expected to trigger around £6 billion of investment for the British economy and create over 2,000 jobs. And there’s great news for UK exporters too, with tariffs on a range of goods set to be slashed from 15% to 3% on average for the £11 billion of goods already shipping into the fastest-growing major economy on the planet. 

This includes whiskey tariffs being cut in half in the immediate term, and set to fall further over the next five years. Soft drinks, autos and cosmetics will also see rates fall. 

In return, the UK is set to import more of India’s textiles, gemstones and other goods. 

By 2040, the impact of the deal is expected to deliver a £25.5 billion boost per year.

Kier Starmer and Narendra Modi could sign the deal today as part of a wide-scale meeting, which will likely also discuss illegal migration and the sharing of intelligence. 

Starmer has already commented that the deal ‘is a major win for Britain’, further cementing business ties with a key partner with bilateral trade already worth £42.6 billion a year. 

He said: “It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.

“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”

Chief executive of the CBI, Rain Newton-Smith, told LBC that: “A trade agreement with India – one of the world’s fastest-growing economies – is a springboard for long-term partnership and prosperity. UK firms can take advantage of this new platform to scale, diversify and compete on the global stage.”

Opportunities for UK firms

This is another in a string of new trade agreements signed by the UK government over the last year and creates an opportunity for ambitious businesses to increase sales into huge new markets. 

Read more: UK secures two huge trade agreements in a week: What it means for British businesses

At Go Exporting, we help businesses to capitalise on the growth opportunities that global trade offers. From ambitious start-ups to established international players looking to expand, we support by identifying opportunities, researching the market, and planning the route to success. 

Learn more about our exporting growth plans, and our wider international trade consultancy services here.

The UK government has secured two major trade agreements with leading global economies in moves that will present British businesses with a range of opportunities to grasp… and some disastrous outcomes predominantly avoided.  

A week of deals began two days ago with the announcement of a truly historic free trade agreement with India, the fastest-growing economy in the G20 and a market over over a billion consumers. 

The government estimates that the agreement will boost bilateral trade by £25.5 billion, remove trade barriers, and make it easier for UK and Indian businesses to send talented workers to each other’s countries. 

Standard Chartered CEO and head of coverage in the UK, Saif Malik, noted that: “The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor. “

So what’s in the deal?

First, the UK has lowered taxes on goods imported from India, including clothing and footwear, jewellery, some cards and food products. 

India, in return, has cut rates on imports from the UK spanning cosmetics, scotch whiskey, luxury cars, lamb and salmon, aerospace products and electrical machinery. 

For UK luxury carmakers currently caught in the crosshairs of Trump’s auto tariffs (although more on that later), this will come as particularly good news, as it will for Welsh sheep farmers, fisheries, and whiskey producers in the Highlands. 

The deal isn’t in effect straight away, though, and there is some staggering of tariff reductions. For example, tariffs on whisky imported from India to the UK will be halved to 75% to begin with, and eventually reduced to 40% after 10 years. Car tariffs will see a more immediate drop, from 100% now to 10% as soon as the deal comes into effect. 

Why this deal is significant for UK businesses and also the economy is that India is a thriving, fast-growing economy with a steadily growing middle class. Yet exports and imports to this thriving market are less than 2% of total output for the UK. In fact, we sell nearly 3x as much to the Netherlands as we do to India right now. 

The deal is therefore a nice-to-announce now, but could be fundamental to future UK economic growth in the future. If India’s economy continues to surge, and there are some forecasts which suggest it could become the 3rd or 4th major economy in the world and could end up adding $1tn in exports by 2030. 

So the question for the UK businesses right now should be, can we get in on that economic action?

And what about the agreement with the US?

Perhaps more consequential in the immediate term is the new trade agreement between the UK and the US – the first such agreement that the Trump administration has announced since upending global trade with his tariff war. 

The full details of the agreement are still to emerge, but here’s what we know so far:

1. 10% tariffs still broadly apply
2. 0% tariffs on steel and aluminium 
3. The UK auto sector can send 100,000 vehicles into US at a 10% tariff, not 25%, protecting tends of thousands of UK jobs in auto manufacturing. Currently, the UK sends 101,000 vehicles a year, so the deal represses growth but protects industry in its current state.
4. Rolls-Royce engines to continue being sold in US tariff-free
5. UK buying £10bn US planes – to be detailed and announced later on
6. A special agreement for the pharmacy sector with a ‘significantly preferential outcome’ according to the Prime Minister
7. US agriculture will have more access to UK markets for things like beef with reduced taxes on ethanol too

More technical details and the full text of the agreement are to be released shortly. 

The view from Go Exporting

Go Exporting CEO Mike Wilson has shared his thoughts on what this consequential week for exporting news means for UK firms:

“You wait around for half a decade (since Brexit) for a consequential trade deal, and then two come along at once.

“The free trade agreement with India is truly historic and has been years in the making. It opens up the world’s fastest-growing economy with a huge and emerging middle-class consumer base to numerous critical British industries, spanning aerospace to whiskey. 

“The economic and opportunity uplift from this agreement will take some time to play out, but businesses that make moves today will be best placed to benefit from the opportunities that will arise tomorrow. 

“Critical for UK firms in the here and now is the newly announced deal with the US. The government has done well to muscle its way to the front of the queue with the White House to arrange such an agreement, and it will bring some peace for key UK sectors, including critical automotive firms. 

“Although 10% tariffs remain for most, there are benefits for auto manufacturers, steel and the aerospace industry. Farmers may pay the price with the opening of the UK market to US beef, however – we will know more as the full text is released.

“The devil may be in the details, so let’s wait and see, but the sentiment seems to be to move forward to the benefit of both countries.”

This article was written for Go Exporting by 24:Hour Authorised Representatives, specialists in AR services.

Expanding into the European Union (EU) offers significant growth opportunities for exporters, but it also comes with regulatory obligations, particularly concerning product safety. The General Product Safety Regulation (GPSR), which strengthens consumer protection and market surveillance, sets stringent requirements for businesses selling products in the EU. Failure to comply can lead to severe financial penalties, product recalls, and reputational damage.

This article explores the key aspects of GPSR compliance that exporters must consider when entering the EU market.

Understanding GPSR and Its Applicability to Exporters

The GPSR applies to any company placing consumer products on the EU market, whether established within or outside the EU. Exporters must ensure that their products meet essential safety requirements, comply with EU standards, and undergo proper risk assessments before being sold.

The regulation aims to enhance consumer safety by holding businesses accountable for ensuring their products do not pose risks to health and safety.

Key principles of GPSR include:

• Product safety: Products must meet EU safety standards and be free from hazards under normal and foreseeable use.
• Risk assessment: A comprehensive analysis of potential risks must be conducted for each product.
• Compliance documentation: Proper documentation, including conformity assessments and technical files, must be maintained.
• Market surveillance: Authorities can conduct inspections, issue recalls, and enforce corrective actions for non-compliant products.
• Consumer rights: Clear instructions, warnings, and traceability information must be provided to consumers.
• Accountability: Economic operators, including manufacturers, importers, and distributors, must ensure compliance throughout the supply chain.

Key Compliance Considerations for Exporters

1. Ensuring Product Safety and Compliance with EU Standards

Exporters outside the EU must verify that their products comply with relevant EU safety directives and regulations, including:

• Specific EU harmonised standards for regulated products such as electronics, toys, and medical devices.
• Chemical safety regulations under REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals).
• CE marking requirements for products covered by sector-specific EU regulations (note that CE marking does not apply universally under GPSR).

2. Conducting Risk Assessments and Safety Evaluations

Exporters must conduct thorough risk assessments to identify potential hazards. This includes:

• Evaluating the intended and foreseeable use of the product.
• Identifying mechanical, chemical, electrical, or safety risks.
• Implementing mitigation measures to minimise risks.

3. Establishing Clear Traceability Systems

GPSR requires economic operators to maintain clear records for product traceability. Exporters should ensure:

• Products are marked with batch or serial numbers.
• Manufacturer/importer details are included on packaging.
• Documentation proving compliance is retained for at least 10 years.

4. Appointing an EU-Based Responsible Person

Non-EU exporters must designate a Responsible Person within the EU to handle compliance issues and liaise with market surveillance authorities. This individual ensures that products meet GPSR requirements and are appropriately documented.

5. Labeling and Providing Consumer Information

Products must include:

• Accurate and clear labeling in the official language(s) of the destination country.
• Instructions for safe use and maintenance.
• Warnings or precautions where necessary.

6. Preparing for Market Surveillance and Compliance Checks

EU authorities actively monitor and inspect products to ensure compliance. Exporters should be prepared for:

• Random product checks and document verification.
• Potential recalls or corrective actions for non-compliant products.
• Collaboration with authorities in case of safety concerns.

7. Implementing a Product Recall and Incident Reporting System

In case of safety risks, exporters must:

• Have a recall plan in place.
• Notify relevant EU authorities through the Safety Gate system (formerly known as RAPEX).
• Inform consumers and take immediate corrective actions.

8. Verifying Supplier and Supply Chain Compliance

Many exporters rely on third-party manufacturers. To ensure compliance:

• Conduct due diligence on suppliers and verify their adherence to EU standards.
• Include product safety clauses in contracts.
• Regularly audit production processes and material sourcing.

9. Maintaining Technical Documentation

Exporters must compile and store compliance documentation, including:

• Risk assessment reports.
• Test results and safety certifications.
• Technical files detailing product specifications and materials used.

10. Training Staff on Product Safety Requirements

Ensuring employees understand GPSR requirements is crucial. Regular training should cover:

• Identifying potential safety risks in products.
• Understanding EU labeling and documentation requirements.
• Responding to compliance inspections and recall situations.

Consequences of Non-Compliance

Failure to comply with GPSR can lead to severe consequences, including:

• Product recalls and removal from the EU market.
• Fines and legal actions from regulatory authorities.
• Damage to brand reputation and loss of customer trust.
• Restrictions on future exports and market entry bans.

Steps to Achieve GPSR Compliance

For exporters entering the EU market, the following steps can help ensure compliance:

• Assess product safety: Identify risks and implement necessary safety measures.
• Verify compliance with EU standards: Ensure adherence to relevant directives and regulations.
• Establish clear documentation: Maintain detailed records for traceability and audits.
• Appoint an EU representative: Designate an authorised representative to serve as a Responsible Person for compliance oversight.
• Develop a recall and incident response plan: Prepare for potential safety concerns.
• Train employees and partners: Educate staff and supply chain partners on safety requirements.
• Engage with compliance experts: Consult regulatory professionals for guidance.

Conclusion

Expanding into the EU presents lucrative opportunities for exporters, but GPSR compliance is a critical consideration. By understanding product safety requirements and implementing robust compliance measures, exporters can build trust with EU consumers, avoid penalties, and establish a strong presence in the European market. Prioritizing safety not only ensures regulatory compliance but also enhances brand reputation and long-term business success.

Where will it end?

The US imposes 10% tariffs on the UK, 34% on China… even a tiny island populated only by penguins got the baseline 10% tax rate.

Then China retaliated with 34% additional tariffs on US goods, which the US said was a panic move.

Where they tread, more are set to follow. The EU has said it will retaliate, and Mark Carney seems poised to retaliate further if Canada continues to be provoked.

How do you survive a global trade war?

Above all, don’t panic, and take positive action.

Review your supply chain.
Look for alternatives with lower tariffs.
Look for alternative, more stable markets – especially where free trade agreements exist.

As the US becomes less attractive, diversifying your exports to other countries mitigates the risk.

Look at Asia, Australia, Canada and others. Can you make use of Free Zones, customs warehousing and the like to reduce the tariff burden?

But what you 100% cannot do is sit in your hands and wait for everything to blow over. This is a fundamental shift in global trade, and everyone – maybe even those penguins – will feel the impact.

Go Exporting can help you plan for the new normal, whatever that new normal ends up being.

Reach out to us for support here.

Mark your diaries for what may be one of the less jovial contenders for a new national holiday in recent history. On the 2nd April, a date branded as ‘Liberation Day’ by President Donald Trump, the United States will impose sweeping 25% tariffs on imported cars and automotive parts. 

The controversial measure aims to revitalise domestic manufacturing, a cornerstone of Trump’s ‘America First’ strategy, but it’s a move that will hit both partner and competing economies hard – including the UK’s carmakers. 

How will the UK automotive sector be impacted?

The UK automotive sector, having just regained its feet after Brexit, and the pandemic, and surging energy prices, is going to be hit hard. Jaguar Land Rover is especially exposed as it exports 100% of its US sales with no state-side manufacturing base. Vehicle prices will rise, curbing consumer demand across the Atlantic and risking profitability for one of Britain’s iconic luxury carmakers.

According to industry analysts cited by The Independent, the UK automotive sector could see costs increase substantially, putting thousands of jobs at risk across manufacturing hubs in the West Midlands and North East of England. 

Other car giants around the world which are particularly exposed include Volvo, Mazda, VQ, Hyundai and the German saloon giants too. 

Impact beyond UK borders – the global automotive tidal wave

The tariffs will also cause some collateral damage. Major manufacturers such as Tesla and Ford heavily rely on international supply chains, sourcing parts from China and other global manufacturing hubs. The US automotive sector, therefore, faces increased production costs, which will inevitably pass down to American consumers, potentially dampening domestic car sales and manufacturing employment – especially for newer vehicles.

Data from industry bodies shows that a typical car manufactured in the US includes approximately 40% imported parts, underscoring the interconnectedness of global automotive production.

UK exemption hopes fading

The UK had previously hoped to secure an exemption from these damaging tariffs, particularly following a notably positive diplomatic visit by Prime Minister Keir Starmer to the White House. 

However, the mood music out of Downing Street has darkened and it looks a though the UK will be lumped in with everyone else when it comes to auto tariff treatment. 

Mixed reaction in the USA

In the United States, reaction to the tariffs has been deeply divided. Supporters, primarily from manufacturing regions in the Rust Belt, see tariffs as a necessary measure to restore domestic production capabilities and protect American jobs. Opponents, however, warn that higher tariffs will escalate vehicle prices for US consumers, reduce sales volumes, and potentially trigger job losses across the automotive retail and repair sectors.

Economists warn of broader impacts too, including reduced consumer spending power, increased inflationary pressures, and heightened risks of economic recession – potentially counteracting any intended economic gains from the tariffs.

Short-term and long-term strategies for UK businesses

So, what can UK-based auto firms do? In the immediate term, exporters should brace for disruption. Firms should urgently assess their exposure to US markets, actively monitor pricing strategies, and potentially explore absorbing short-term costs to retain market share. Strengthening supply chain resilience through alternate sourcing and stockpiling critical components will also be prudent, something that US firms have been doing since Trump returned to the White House. 

For longer-term stability, diversification remains essential. UK companies heavily reliant on the US as a large percentage of its sales base should actively explore new international markets, particularly in growing economies in Asia and Africa, alongside reinforcing trade partnerships within Europe and Commonwealth countries.

This is a turbulent time for businesses on both sides of the pond. Having honest, open and constructive dialogue with suppliers and customers will be essential.

The good news? Literally everyone is in the same boat. As with Brexit, those who adapt best will be best place to ride out this tide of tariffs and come out swimming on the other side. 

President Donald Trump has this week warned he may impose a 25% tariff on goods entering the United States from the EU. During a speech, he claimed that the EU “was formed to screw the United States” and argued that existing trade flows are unfairly weighted against American interests. While details of any forthcoming measures remain unclear, the very suggestion has raised alarms among businesses and policymakers across Europe.

So what does the current trading relationship between the two giant blocs look like? What is the current state of affairs, potential repercussions on both sides of the Atlantic, and how might UK exporters find themselves in a unique position – particularly as the UK has a smaller trade deficit with the US compared to the EU as a whole?

What’s going on?

President Trump’s comments were made in a public address, in which he criticised what he perceived as unfair EU trade practices. Central to his argument is the EU’s trade surplus with the US, which he views as evidence that American companies and workers are not receiving equitable treatment. By threatening tariffs of up to 25%, Trump appears to be pressuring Brussels to reconsider existing trade agreements or forge new pacts more favourable to the US.

These remarks have rekindled fears of an escalating trade conflict, similar to those seen during previous tariff disputes with Mexico and Canada where last-minute offers were presented to appease the Trump administration. At present, however, no official action has been taken, and it remains to be seen if the President’s comments will swiftly translate into concrete policy, or are simply another bargaining chip to get what he wants.

What does the current US/EU trade relationship look like?

Despite periodic disagreements, the US and the EU have traditionally enjoyed a robust economic partnership, exchanging high volumes of goods and services. This long-standing relationship is built on deeply intertwined supply chains and mutual dependence, although it has faced tensions on various fronts over the years.

The EU runs a significant trade surplus with the US, mainly driven by high-value exports such as automobiles, pharmaceuticals, and other manufactured goods. President Trump and others argue that this indicates the US is not getting a ‘fair deal’, although many economists point out that trade imbalances can stem from wider consumer demand patterns and complex global supply chains, rather than outright protectionism.

The most traded products between the two blocs are:

• From the EU to the US: Cars, machinery, chemicals, pharmaceuticals, and luxury consumer items consistently dominate export lists.
• From the US to the EU: American businesses send large volumes of aircraft, technology, medical equipment, agricultural products (like soybeans), and services.

Previous disputes, such as those over aircraft subsidies or digital services taxes, have occasionally strained relations, but rarely led to across-the-board tariffs on this scale. President Trump’s latest warning signals a potentially broader clash.

Potential impact of the proposed tariffs

Should the US enact 25% tariffs on EU goods, the consequences would likely be widespread, affecting companies, consumers, and entire industries both in Europe and America.

EU businesses
European exporters could face immediate cost increases that make their products less competitive in the US market. Industries already in the spotlight – particularly automotive and luxury goods – would likely feel the brunt of the impact, with smaller firms relying heavily on American sales at the greatest risk.

US businesses
While tariffs are aimed at protecting domestic production, they often push up input costs for American firms reliant on European components or raw materials. Increased prices could dent competitiveness and force companies to either absorb losses or pass higher costs to consumers.

Supply chain disruption
Many American and European production processes are interlinked, relying on parts sourced from multiple countries. Tariffs would add complexity, potentially prompting businesses to shift supply chains elsewhere – a costly and lengthy endeavour.

Risk of retaliation
Historically, major economies respond to tariffs with countermeasures, escalating a tit-for-tat cycle. The EU might retaliate by imposing tariffs on key US exports, such as agriculture, technology, or aviation products. Any such moves would add further unpredictability to the business environment on both sides.

Implications for UK-based businesses

The UK’s departure from the Single Market places British exporters in a distinct position: with a less pronounced trade deficit with the US, President Trump may not be as strongly targeted by British goods. If the EU faces steep tariffs and the UK avoids them, this divergence could create opportunities for British businesses to become a conduit for trade between Europe and America.

Potential as a gateway

• Re-exporting EU goods: If UK-based companies act as intermediaries, funnelling goods from the EU to the US, they could capitalise on avoiding direct tariffs—provided that rules of origin and customs obligations can be met without incurring the same duties.
• Rules of Origin complexities: However, navigating rules of origin is crucial. If components or finished products are largely EU-sourced, re-routing through the UK might not automatically sidestep American tariffs.
• Greater investment: If the UK is perceived as a more favourable transatlantic trade springboard, it may attract inward investment from EU businesses seeking to shield themselves from US tariffs. This could stimulate job creation and growth within Britain.

Still, these prospects hinge on the details of any new US–UK trade arrangements, as well as the exact scope of tariffs imposed on EU goods. UK exporters should remain watchful of these developments to gauge how they might leverage any comparative advantages.

Key takeaways for UK exporters

1. Monitor policy announcements: Changes can happen swiftly. Stay abreast of official communications from both Washington and Brussels to anticipate potential shifts in tariff regimes.
2. Assess supply chains: If you import components from the EU for re-export to the US, review the rules of origin to ensure compliance and limit unexpected costs.
3. Plan for contingencies: Diversify trade partners and product lines where possible. Reducing dependence on a single market or region is a prudent strategy in uncertain times.
4. Explore new opportunities: If the UK remains exempt from heightened US tariffs, it may be an opportune moment to strengthen relationships with American buyers or form partnerships with EU firms looking for a tariff-friendly route across the Atlantic.

While it remains unclear whether President Trump’s threat will materialise into widespread tariffs, the message is clear: the US–EU trade relationship could be on the cusp of a dramatic shift. For UK exporters, the priority should be staying informed, nimble, and prepared for the potential to both mitigate risks and seize new opportunities as the transatlantic trade landscape evolves.

The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

As of 15th December last year, the UK became the first European member with 11 other partners including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The joining of the trade bloc has been marked as a ‘red letter day’ by commentators, with the Head of Trade Policy at the British Chambers of Commerce, William Bain, noting: “There are few multi-national trade agreements like this one. It connects us to a fast-growing region of the global economy and will create new opportunities for both inward and outbound investment.”

The CPTPP trading bloc accounts for 15% of global economic output in a fast-growing region, with the deal expected to offer opportunities for UK SMEs to take advantage of reduced costs to import components and export manufactured goods. 

Membership is expected to deliver a number of benefits for the UK and its businesses. Alongside a say in how the bloc develops and strengthens ties with growing economies, it will also open new markets for service providers, help diversify supply chains, and cut tariffs on goods exports. The deal is expected to deliver a £2bn boost to the UK economy each year. 

There is particular interest in the opportunities to do more business with Vietnam and Malaysia, with Jennifer Lopez – CEO of the British Malaysian Chamber of Commerce – saying: “The entry-into-force of the UK’s membership into the CPTPP marks a groundbreaking achievement, transforming trade relationship and unlocking exciting opportunities for businesses in the UK and Malaysia.  

“As this is the first-ever free trade agreement between Malaysia and the UK, it is a historic moment in elevating the longstanding partnership between our nations. It paves the way for collaboration in emerging sectors like digital trade, green technology, and advanced manufacturing.”

Capitalise on emerging markets

If you’ve spotted a potential opportunity to increase trade within the CPTPP bloc, Go Exporting can help make that a reality. 

We have the experience and expertise to support you through the process from start to finish, from initial market research and entry strategy, through to customs and compliance, finding distributors, and driving sales. 

Learn more about our international trade consultancy here.