August 2025 Tariff Situation: New Rules, New Rates

August 2025 Tariff Situation: New Rules, New Rates

Aug 5, 2025 | ,

The US tariff reset that took effect from has ushered in a tiered regime targeting dozens of trading partners, while locking in new agreements with key allies including the UK and EU. The measures follow months of negotiation and a deadline that forced countries to strike deals or face steep duties.

The executive order signed on 1 August by President Trump introduced a new system linking tariff rates to trade balances:

  • 10% tariff – for partners with strong reciprocal purchasing, including the UK and Brazil.
  • 15% tariff – for partners with smaller deficits, such as the EU, Japan and South Korea.
  • Higher rates – for countries with large surpluses or no negotiated deal, rising steeply depending on product category. Examples include:
    • Canada – now at 35% (USMCA‑compliant goods exempt).
    • India – 25%.
    • Switzerland – 39%.
    • Taiwan – 20%.

China remains outside the framework, facing a 12 August deadline to conclude its own agreement or revert to previously threatened peak tariffs.

Most new rates officially take effect 7 August, giving US Customs a brief window to configure enforcement systems. For companies shipping under pre‑deal arrangements, any goods cleared into the US before this date will avoid the new duties; shipments arriving later will be assessed at the revised rates.

Supply Chain Impacts

  • UK–US trade – While the UK avoided steeper tariffs, the 10% rate still raises import costs for UK‑origin goods into the US, particularly in manufacturing, automotive, and speciality food sectors.
  • EU–US trade – 15% baseline tariff now locked in under the July framework deal, with specific product carve‑outs still to be agreed.
  • Canada and Mexico – Canada now faces significant exposure outside USMCA‑compliant flows; Mexico remains under a 90‑day extension before potential hikes.
  • Asia–US trade – Taiwan, India, and other regional suppliers face higher rates, pushing importers to reassess sourcing strategies.

Strategic Considerations for Shippers

  • Re‑map sourcing – Companies may need to adjust supplier portfolios to balance cost impact against tariff exposure.
  • Track compliance – Documentation proving origin will be critical to avoid unintended penalties, especially for goods moving through multiple countries.
  • Build flexibility – With China’s 12 August deadline looming and other bilateral negotiations ongoing, trade conditions could shift again within weeks.

In today’s changing tariff environment, Metro’s customs brokerage services keep U.S. importers compliant, informed, and in control. Our proprietary AI, ML, and automation‑driven brokerage platform — CuDoS — is updated instantly as new rules and tariffs take effect.

Metro Global USA delivers end‑to‑end clearance support, from documentation validation and tariff strategy to structuring entries for exemption eligibility, even on shipments routed via transshipment hubs. Whether navigating classification changes or securing the right evidence for tariff relief, we combine local knowledge, intelligent systems, and customs expertise to simplify compliance and protect your business.

Email Managing Director, Andrew Smith, to learn more about our customs services and CuDoS platform.

US–EU Trade Deal Signals New Trade Era

US–EU Trade Deal Signals New Trade Era

Aug 5, 2025 | , , , , , , , , , , , , , , , , , ,

The US and EU have agreed a landmark trade framework taking effect 1 August, with a 15% baseline tariff, replacing many higher existing rates.

In addition to lowering tariffs the new trade deal opens markets, and pledges huge investment flows, with significant opportunities for UK traders able to leverage the EU’s expanded access to the U.S. market.

Headline tariff changes:

  • Cars & parts – Cut from 27.5% to 15%
  • Pharmaceuticals & semiconductors – 0% tariff until review; max. 15% after
  • Steel & aluminium – Stay at 50% pending quota deal
  • Zero‑for‑zero tariffs – On aircraft, some chemicals, generic drugs, semiconductor equipment, selected agri‑products, raw materials
  • Still under negotiation – Wine and spirits tariffs

Strategic commitments:

  • EU to buy $750bn in US oil, LNG and nuclear technology
  • EU firms to invest $600bn in the US over Trump’s second term
  • Defence procurement from US suppliers planned

Opportunities for US, EU & UK Traders

The agreement creates multiple areas of advantage for transatlantic trade:

For EU exporters to the U.S.:

  • Reduced tariffs on high-value sectors such as cars, pharmaceuticals, and technology components.
  • Greater certainty in supply chain planning with capped tariff rates post-investigation.

For U.S. exporters to the EU:

  • Immediate tariff elimination for priority goods, expanding competitiveness in aerospace, chemicals, and agri-products.
  • Increased market access supported by European government procurement in energy and defence.

For UK exporters and importers:

  • Ability to leverage EU supply chains for tariff-advantaged U.S. market access.
  • Opportunities to integrate into transatlantic supply networks in sectors such as automotive, chemicals, and renewable energy.

Leverage Metro’s EU network, in‑house customs brokerage, and on‑the‑ground teams in the United States to navigate this new trade landscape. Whether you’re reassessing sourcing strategies, managing new tariffs, or planning market entry, our experts can deliver compliant, cost‑effective solutions across every mode and market.

Email Managing Director, Andrew Smith, to explore how we can optimise your US/EU trade strategy.

UK Bid to Join Pan-Europe Trade Area Blocked

UK Bid to Join Pan-Europe Trade Area Blocked

Jul 22, 2025 | , , , , , , , , , , , , ,

The UK government’s attempt to join the Pan-Euro-Mediterranean (PEM) Convention, a framework that simplifies supply chains and reduces tariffs across Europe, North Africa, and parts of the Middle East has been blocked by the EU.

Established in 2012 and modernised in 2025, the PEM Convention allows manufacturers in member countries to “cumulate” inputs, counting components sourced from any PEM country as local when determining a product’s origin for tariff purposes. 

So, if a Turkish manufacturer made a machine from EU-sourced parts, the item would be considered as “made in Turkey” when exported to France, benefiting from preferential trade agreements. This enables goods like cars, chemicals, and processed foods to move across borders with reduced  paperwork and lower tariffs.

The convention’s 25 members include the EU, Norway, Switzerland, Turkey, Ukraine, Egypt, Morocco, and Israel. The UK, notably, is one of the few European countries not included.

Joining PEM could ease post-Brexit trade friction, particularly for UK manufacturers relying on complex, multinational supply chains. It would:

– Reduce rules-of-origin paperwork
– Provide greater sourcing flexibility
– Support industries like automotive, chemicals, and food processing

While some experts say the impact would be moderate, others argue it’s a pragmatic step that offers clear benefits without requiring a return to the EU single market or customs union.

Why Is the UK Blocked?
Despite initially signalling openness, the European Commission has withheld support for UK accession, citing concerns that UK-made goods could unfairly qualify for low-tariff access to EU markets.

Technically, incorporating PEM provisions into the EU–UK Trade and Cooperation Agreement (TCA) would require reopening parts of the Brexit deal and EU officials have indicated they want to stick closely to the “common understanding” agreed at the May UK–EU summit, to avoid further complications.

This block has frustrated UK trade bodies, including the British Chambers of Commerce, which see PEM as a practical tool to improve trade flows.

The UK government has said it will continue to review the potential benefits of PEM and engage with the EU and other PEM members. However, with Brussels signalling little appetite to renegotiate TCA terms, short-term progress may be unlikely.

Metro’s customs specialists design tax-efficient supply chains using bonded warehousing, IPR/OPR, duty drawback, and other regimes to protect your cash flow, minimise duty exposure, and keep you fully compliant. EMAIL Managing Director, Andy Smith, to learn more

US Customs Reforms Raise Questions on HTS Entries and Transshipped Goods

US Customs Reforms Raise Questions on HTS Entries and Transshipped Goods

Jul 9, 2025 | , , , ,

Businesses responsible for customs clearing goods into the US are adjusting to two significant Customs and Border Protection (CBP) changes that could affect classification practices and the treatment of goods in transit.

Firstly, CBP has expanded the number of Harmonised Tariff Schedule (HTS) codes allowed per entry line from 8 to 32. The change, which applies to both standard and reconciliation entries, is intended to streamline the entry process and improve digital efficiency across the Automated Commercial Environment (ACE).

The move to allow 32 HTS codes per line is a big shift, and speaks volumes about the uncertainty over future tariffs. It is clearly leaving the door open for further complexity, depending on how U.S. trade partners respond and while the largest brokers can technically handle it, those without automation or AI technology have voices concerns. 

For importers managing high-SKU consignments, the risk of misclassification or documentation errors increases significantly, potentially leading to delays, penalties or additional scrutiny.

Industry Seeks Clarity on Transshipment and Tariff Application
A second area of concern relates to the treatment of transshipped goods under the new tariffs introduced via the International Emergency Economic Powers Act (IEEPA) in April.

A coalition of 94 shipper, broker and forwarder organisations, including major retail and transport associations, has written to CBP and the Department of Homeland Security, urging them to clarify whether cargo transshipped via third countries remains eligible for tariff exemption if it left its origin before the April 5 deadline.

The industry points to longstanding CBP rulings that support exemption based on the original country of export, provided there is documentation such as bills of lading, purchase orders and invoices confirming that the US was the intended final destination.

However, it is reported that CBP’s responses have been inconsistent, with some entries flagged for duties despite meeting these criteria. Further guidance issued in May attempted to address this issue through a list of FAQs, but many in the trade community feel uncertainty persists, especially as tariff reviews continue and legal challenges to IEEPA enforcement remain unresolved.

Metro’s Support for UK Exporters and US Importers
In this changing environment, Metro’s customs brokerage services are designed to ensure that clients stay compliant, informed, and in control. Our AI, ML and automation driven brokerage platform – CuDoS – is designed to handle the expanded 32-code entry structure, making it easier to manage complex multi-SKU shipments with speed and accuracy.

For exporters selling to US group companies or under Delivered Duty Paid (DDP) terms, our US-based team at Metro Global USA provides end-to-end clearance support, including documentation validation and tariff strategy. We continuously monitor CBP guidance and help structure entries to support exemption eligibility, including shipments routed via transshipment hubs.

Whether navigating classification changes or securing the right evidence for tariff relief, Metro combines local knowledge, intelligent systems, and customs expertise to simplify compliance and protect your business.

EMAIL our managing director Andrew Smith, to learn about our customs services and CuDoS platform:

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