US tariffs have been dominating the news recently, with Trump imposing tariffs across the board to varying percentages based on country of origin of goods. At time of writing, there is a blanket 10% US tariff on UK goods being imported into the US.
A lot of UK manufacturers and exporters to the US will be asking the same question: “how will this affect my business?”. There are a couple of ways to answer this complex question. We can break it down in two ways, the first being dependent upon which Incoterm you sell your goods to the US on.
Incoterms and US tariffs
If, for example, you sell to the US on a delivery duty paid (DDP) incoterm, then you (the UK exporter) will be picking up the tariff bill. On any other Incoterm: EXW, FOB, FCA, DAP (and so on), then the US importer will foot that bill.
Supply and Demand
On a broader level, the US tariffs will make imported goods in the US more expensive to the end consumer, which naturally could lead to reduced demand, or importers looking to recoup these costs by negotiating with their overseas suppliers. Both scenarios are less than ideal for UK exporters, resulting in reduced revenue and profits.
UK vs Rest of the World
The UK is in a more favourable position than a lot of other countries, which have higher US tariffs. For some commodities, the UK could be a preferable option for US importers, particularly for the UK’s strength in manufacturing, such as engineering, machinery and pharmaceuticals.
Mercator is a UK based freight forwarder, we have been operating for over 30 years. Our export team regularly works with our US agents. In partnership with our agents based in the US, we can offer a full door to door shipping service, via sea freight or air freight. Get in touch with our team if you are looking for a quote for shipping to the US, we can handle single pallets up to multiple containers and even out of gauge shipping. To contact our team you can call (+44) 02392 756 575, email sales@mercatorcargo.co.uk or complete the form below and someone will be in touch.
