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Major US Tariff Changes

Apr 3, 2025 | , , , , , , , , , , , , , , , , , ,

On 2 April , President Trump unveiled sweeping new tariffs that will have global implications for international trade. 

These measures mark the most significant restructuring of U.S. tariff policy in decades and they will impact many businesses, irrespective of whether they trade with the United States.

Key Tariff Measures

  • Universal Tariff: A baseline 10% tariff will now apply to all imported goods entering the United States, effective immediately. The UK has been hit with this baseline.
  • Targeted Tariffs: Elevated tariffs have been introduced for a wide range of countries, including:
    • China: 34% (bringing total duties to 54%)
    • Vietnam: 46%
    • Cambodia: 49%
    • Bangladesh: 37%
    • European Union: 20%
    • Japan: 24%
    • South Korea: 25%
    • India, Indonesia, Taiwan and others: 26–36%
  • End of de minimis: The $800 duty-free threshold for China imports into the U.S. will be eliminated from May 2, disrupting cross-border eCommerce flows.

Implications for UK Importers and Exporters

Many production hubs like Vietnam, Cambodia, and Bangladesh now face tariffs approaching or exceeding 40%. UK brands that re-export to the U.S. from Asia could see significant cost hikes and supply chain disruptions.

U.S. importers are expected to face increased landed costs and margin pressure. Brands may be forced to raise prices or renegotiate terms with suppliers, especially as cost-conscious consumers in both the U.S. and UK continue to feel inflationary pressures.

Even UK-based businesses that manufacture domestically could be affected due to their reliance on imported raw materials, which could now become more expensive due to universal tariffs on U.S. imports.

While automotive was less explicitly detailed in last night’s announcement, the baseline tariff applies to all goods and a separate 25% duty on imported automobiles (previously announced) remains in place. This could impact UK automotive component manufacturers that export to the U.S. and face increased costs on U.S.-sourced parts for use in European production.

The sector is also exposed to the broader risk of retaliatory tariffs, particularly from the EU and Asian economies, which may further complicate trade flows and cost structures.

European Response

While the UK is pausing reaction, the European Commission has already indicated a strong and coordinated response is likely. While details of retaliatory measures are still unfolding, the EU is expected to pursue countermeasures, which could further disrupt transatlantic supply chains, including UK firms trading with both blocs.

There’s also growing concern about goods being diverted into UK and European markets as exporters from Asia and other regions look for alternative markets in response to the new U.S. tariffs. This could lead to ‘dumping’ and potential price pressure, especially in fashion and fast-moving consumer goods.

Putting the Tariffs in Perspective

  • Not always an additive cost:
  • The new tariffs replace existing duties rather than stacking on top of them. For example, if a product currently has a 5% duty and the new universal rate is 10%, the increase is 5%, not an additional 10%. This makes the change less severe than it might first appear.
  • Customs regimes can help: Tools such as Outward Processing Relief (OPR) and Inward Processing Relief (IPR) can help businesses avoid customs duties on goods that cross borders multiple times for processing.
  • Low-cost countries still competitive: Despite increased tariffs, production in countries like Vietnam and Bangladesh may still be more cost-effective than U.S. manufacturing—though consumers are likely to see price increases.
  • No substitute for specialised goods: Products under copyright, or those requiring specialised manufacturing, cannot easily be relocated. In these cases, additional costs will be passed directly to consumers.
  • Opportunities for the UK: Low-duty countries such as the UK could become more attractive as manufacturing bases for goods destined for the U.S. This may stimulate local manufacturing activity.
  • Are these changes permanent? It’s too early to tell. The tariffs could be temporary, as demonstrated by reversals in January 2025 involving Canada and Mexico. The long-term outcome will depend on how events unfold following this decision by the Trump administration.

What This Means for Your Business

We recommend that clients in affected sectors:

  • Reassess Supply Chains: Identify exposure to high-tariff countries, especially if goods transit through the U.S. or rely on U.S.-based components or partners.
  • Prepare for Cost Changes: Anticipate adjustments to landed costs and pricing strategies. Engage early with suppliers to explore cost-sharing or alternative sourcing.
  • Monitor for Retaliation: Be alert to EU and UK policy shifts that could either mirror or respond to the U.S. measures.
  • Watch for Dumping Risks: Be aware of the potential for market saturation as exporters redirect goods, especially in fashion, household goods, and footwear.

We are closely monitoring the situation and will keep you updated as further developments emerge—particularly in relation to EU countermeasures and UK trade policy adjustments.

Please don’t hesitate to reach out if you’d like to discuss your specific supply chain, explore alternative strategies, or assess your risk exposure.

Metro is well positioned to support you, especially through our recent U.S. expansion and our strong North American trade focus. Expect further updates in the days and weeks ahead as more details become available.

China car factory parking lot

US Auto Tariffs Threaten European Carmakers

Apr 2, 2025 | , , , , , , ,

From the 2 April the US will impose a 25% tariff on all imported cars and light trucks. The tariffs, unveiled in a 26 March White House proclamation, are being implemented in phases, with vehicle components including engines and transmissions following on 3 May.

The decision to impose blanket tariffs on imports from long-standing trade partners like Canada, the EU and UK has already rattled brands, OEMs and suppliers worldwide. For European manufacturers, the new regime poses a direct threat to export volumes and profitability, particularly as the US remains a vital sales destination.

More than 20% of Europe’s vehicle production is exported to North America and these exports now face total levies of up to 40–50% when accounting for existing duties and the potential for retaliatory measures. The pressure on European OEMs is compounded by the possibility that preferential access through the United States-Mexico-Canada Agreement (USMCA) and other free trade agreements may not offer meaningful relief.

While automakers with established US production footprints may find temporary shelter from the storm, the longer-term implications are clear: export-led models are at risk, and global production strategies may need to be reengineered.

Unravelling the Supply Chain
The disruption extends well beyond finished vehicles. Starting in May, key components like transmissions and electrical systems will also attract the same 25% tariff. Even parts currently exempt under USMCA will soon face tighter scrutiny, as only components with certified US origin will remain duty-free.

This poses a particular challenge for tier-one and tier-two suppliers in Europe, many of whom rely on just-in-time delivery models and long-standing transatlantic flows. OEMs on both sides of the ocean are now under pressure to regionalise production, adjust sourcing strategies, and build resilience into their logistics networks.

European manufacturers will likely bear the brunt of rising costs, as shipping cars or components into the US becomes significantly more expensive. With retail prices potentially rising by $4,000–$12,000 per vehicle, demand is expected to falter, affecting everything from factory output to logistics flows and dealer inventory management.

In Europe, the implications extend beyond car exports. The wider automotive value chain, encompassing thousands of suppliers, technology firms, logistics providers and transport networks, is now being forced to confront a scenario where US market access becomes increasingly conditional, and long-standing production economics are thrown into question.

Short-term spikes in vehicle and parts shipments are expected before the tariffs take full effect, as manufacturers race to front-load deliveries.

As global trade policies shift and new tariffs reshape supply chains, proactive planning is more critical than ever. At Metro, we leverage award-winning services and deep industry expertise to help automotive brands, manufacturers and OEM’s navigate evolving trade barriers, regulatory changes, and supply chain disruptions.

Whether you need to mitigate the impact of tariffs, ensure compliance with new regulations, or adapt sourcing/export strategies, our tailored solutions keep your supply chain resilient and competitive.

EMAIL Andy Smith, Managing Director, today to explore how Metro can safeguard your supply chain and support your business in 2025 and beyond.

European roadmap to recovery

ICS2 and ELO: Preparing for the Next Phase of EU Border Compliance

Mar 28, 2025 | , , , , , , , , , , , , , ,

As of 1st April, the European Union’s Import Control System 2 (ICS2) entered its final implementation phase; a critical milestone for businesses moving goods into the EU. 

Designed to enhance the safety and security of EU-bound shipments, ICS2 is now live across all transport modes, including road and rail, in addition to air, maritime, and inland waterways.

Import Control System 2

ICS2 introduces a standardised, data-driven pre-arrival notification for goods entering the EU. The system mandates the submission of accurate and complete Entry Summary Declarations (ENS) before arrival at the EU’s external border. These declarations allow customs authorities to perform detailed risk assessments and target high-risk consignments before they enter the supply chain.

This not only improves customs enforcement but supports a more secure and streamlined trade environment.

This latest phase introduces two key updates:

  1. 1. Mandatory House Bill Filings for Surface Containerised Movements
    This update predominantly affects sea freight and applies to:

    • Goods moving to the EU
    • In-transit shipments through the EU
    • Freight Remaining on Board (FROB)
  1. 2. Live ICS2 Filing for Road and Rail Movements
    Both accompanied and unaccompanied trailers now fall under ICS2’s scope. Businesses must submit ENS data 1 to 2 hours before EU arrival, depending on the transport type. Timing is critical — incomplete or late submissions could lead to delays, detentions, or even denied entry.

The Enveloppe Logistique Obligatoire

As introduced during our most recent webinar, ELO is not to be confused with the 70s rock band, it represents a major evolution in French customs procedures.

ELO is an extension of France’s import/export pairing process. Under the new system, every crossing from GB into France will require a declaration barcode, which also supports onward movement into the remaining 27 EU countries. The goal is to digitise and streamline freight verification, with a single ELO envelope covering the full logistics trail.

Metro’s Briefing Webinar

On Friday, 28th March, Metro hosted its second industry webinar, focusing on the latest regulatory developments. The webinar audience were briefed by our experts on the latest regulatory developments, including ICS2 declarations, the introduction of ELO, updates and the Carbon Border Adjustment Mechanism (CBAM). 

They were also updated on changes to the UK Customs Declaration Service (CDS) for exports, evolving trade agreements such as the CPTPP, and implications of the Windsor Framework for Northern Ireland.

The session aimed to ensure attendees are not just compliant but well-positioned to optimise their supply chain strategies in this evolving regulatory landscape.

Stay connected with Metro for expert-led insights, upcoming webinars, and on-the-ground support to navigate new regulatory frameworks confidently. EMAIL Andy Fitchett to register your interest.

strike at port

Labour disputes at European ports disrupt container shipping

Mar 5, 2025 | , , , , , , , , , , , , , ,

Trade union action across major European ports, particularly in Rotterdam and France, are causing significant disruptions to container shipping, exacerbating existing supply chain challenges.

Strikes at Rotterdam’s Delta II terminal and ongoing industrial action at French ports have created congestion, delays, and logistical bottlenecks, prompting carriers to reroute vessels and seek alternative solutions.

Rotterdam turmoil and ripple effects
Contract negotiations that began in November have stalled, while the FNV Havens and CNV unions have been locked in dispute with employers since the second half of last year over port automation concerns. Dockworkers have been staging intermittent strikes that have severely impacted deep-sea vessel operations, feeder ship schedules, and inland-bound cargo movements. The situation has escalated with calls for solidarity action across Europe, urging other ports not to handle diverted vessels. While no widespread solidarity strikes have been reported, shipping lines remain on high alert, monitoring developments and adjusting vessel rotations as necessary.

Congestion at Rotterdam has intensified due to a combination of adverse weather, holiday-related backlogs, and surging cargo volumes from Asia. As a result, vessels are facing extended waiting times, with some opting to bypass the port altogether. The container yard capacity is nearing full utilisation, and precautionary measures, such as limiting empty container acceptance, have been implemented to manage the strain.

French port strikes deepen crisis
Meanwhile, industrial action at French ports is compounding the disruption. Dockworkers are protesting against pension reforms, with frequent work stoppages and a series of strikes planned throughout March. These actions have significantly impacted cargo handling operations at key ports, including Le Havre and Marseille-Fos, leading to increased transport costs and supply chain strain for businesses dependent on timely shipments.

The business community has voiced concerns over the economic fallout, citing rising supply chain costs, shipment delays, and a decline in sales due to the port closures. Calls for government intervention and a coordinated public-private response have been made in an effort to mitigate the impact and prevent further damage to trade and industry.

Wider European impact
As Rotterdam and French ports struggle with ongoing disruptions, other European hubs, such as Antwerp-Bruges, are facing additional pressure. With cargo diversions increasing, terminal congestion at Antwerp has reached critical levels, forcing operators to implement emergency measures. 

Import deliveries are being prioritised over exports, and yard space constraints are leading to restrictions on transshipment volumes. Barge and feeder operations are experiencing significant delays, further straining inland logistics networks.

With no immediate resolution in sight for either the Rotterdam or French port disputes, container carriers are bracing for continued volatility.

With escalating labour disputes at key European ports, including Rotterdam and France, container shipping is facing increasing delays, congestion, and logistical challenges. At Metro, we have contingency plans in place to bypass affected ports, leveraging alternative routes and entry points to keep your cargo moving.

To minimise disruptions, we encourage you to share your shipping forecasts as early as possible so we can proactively mitigate potential issues.

For tailored solutions and expert guidance on protecting your supply chain, 

EMAIL Andrew Smith, Managing Director, today.

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