After announcing trade deals with both the UK and the EU, the US President issued an executive order on 31 July 2025 containing the list of additional tariff rates that will shortly be paid, depending on the origin of goods on import into the US. These rates vary from 10% to 41%.

This list included territories such as the UK and EU that had reached agreements with the US prior to the announcement, and those such as India which have not yet reached an agreement. The newly announced tariffs may prompt more countries to negotiate similar deals. Goods from key manufacturing countries such as Bangladesh, Vietnam and Cambodia are all subject to additional tariffs of around 20%, whilst those from Switzerland have been hit with a 39% additional tariff rate.

The EU is an outlier in that while it has negotiated a 15% tariff rate, this does not apply in addition to the standard tariff rate. Where the standard tariff rate is 15% or less, importers into the US of EU origin goods will pay 15%, and where the standard tariff rate is over 15%, they will pay the standard tariff. This contrasts with the UK agreement which involves a 10% addition to the standard tariff rate. So, while importers of UK goods to the US have a better deal than those importing goods from the EU, where the standard tariff is less than 5%, they are in a worse situation for goods with a standard tariff rate of more than 5%.

With the average US standard tariff rate sitting at 2.5%, this means the UK has negotiated a better deal for the majority of goods. However, the actual result is dependent on the type of goods, with some sectors benefiting more than others. In practice, this means that UK origin electronic devices may face lower tariffs than their EU equivalents, but EU origin clothing and dairy products may have an advantage over the same UK goods. Taking a broad view of tariffs often overlooks the fact that their impact on business does not fall equally on all sectors and is likely to hit some businesses harder than others.

The announcement of the additional tariff rates followed an executive order announcing the removal of the de minimis duty exemption for goods imported into the US of all origins, which was published a day earlier. Whilst the removal of the facilitation exempting consignments of $800 or less from duty was expected, the speed at which it has been removed has taken many by surprise. Businesses that have been utilising the de minimis policy for imports into the US, such as ecommerce businesses selling direct to US consumers, face having to make changes to their business model or suffer tariffs on the goods they import from 29 August 2025.

While US tariff rates have been volatile for some time, it is to be hoped that the recently announced rates herald some longer term stability. Businesses now need to analyse their supply chains to understand their individual exposure to the additional tariffs and make informed decisions about any changes.