#TariffPause
A quick 7-point breakdown of the current U.S. tariff situation and its global impact:
1. 10% Universal Tariff: A new 10% minimum tariff applies to all imports into the U.S., including from the UK and EU, replacing lower or zero tariffs under previous trade deals (e.g., with Australia, South Korea).
2. China Tariff Increase: Tariffs on Chinese goods jump from 104% to 125%, with an additional 20% on fentanyl-related items, escalating the U.S.-China trade war.
3. Suspended Tariffs: Higher tariffs (e.g., 46% on Vietnam, 20% on the EU) are paused until July, but the baseline 10% tariff remains in effect.
4. Ongoing High Tariffs:
• 25% on cars (including UK exports).
• 25% on steel/aluminum and related products (UK exported $720M in 2024).
• 25% on select goods from Mexico/Canada, despite prior trade agreements.
5. Global Economic Risks:
• U.S. import tariffs may hit 24–27%, the highest in a century.
• Economic slowdowns in the U.S. and China (43% of global GDP) could damage global growth.
6. Impact on the UK:
• Lost tariff advantage over the EU (both now face 10% tariffs).
• $9B car exports to the U.S. impacted by the 25% tariff; $2.9B in metal exports also affected.
• Service exports (the bulk of UK-U.S. trade) remain tariff-free.
7. Uncertainty & Criticism: Economists warn that Trump’s sudden shifts in tariff policies (pausing and increasing tariffs) create instability, stalling investments, and worsening global trade tensions.