USA Trade Tariffs

USA Trade Tariffs

MIA Member Global Logistics Management, has provided the following update regarding the recent USA Trade Tariffs:

The much talked about US trade tariffs were unveiled by US President Donald Trump on Wednesday 2^nd April.   We now know to what extent US tariffs are being imposed. What does this mean and what should we expect:

• The new tariffs (10% / 25%) are in addition to existing tariff charges. 
• Cars for example would therefore be 2.5% + 25%, plus the Merchandise Processing Fee of 0.3464%.
• Do expect some delays due to physical and administrative checks as USA will be carrying out more border checks relating to the origin of goods. 
• Make sure the country of origin it is clear on your shipping invoices. 
• In relation to the Country of Origin status, purchasing strategies may need to be reviewed for goods that are ultimately destined for US markets.
• Check your Incoterms. 
• If you have a DDP agreement then the additional costs will be your responsibility. 
• For all other Incoterms the import tariff costs are paid by the importer not the exporter. 
• If you are supplying your own US business to sell into market, then these changes will have a direct financial impact on your business and you will need to find a mechanism to pass on those additional costs to in country customers. 
• Now is the time to do this as the whole world knows about these tariff increases.
• With uncertainty comes opportunity. 

The MIA remain in direct contact with HM Customs & Excise and they will advise us of any changes to the UK agreement with the US.

Other MIA Members who can provide you help and assistance regarding the above are Priority Freight, Evolution Time Critical, and Freight Link Solutions.

MIA Partner organisation, MAKE UK, has provided a statement regarding the US Tariffs, and further resources are available here.

The Society of Motor Manufacturers and Traders (SMMT) have provided their statement here.