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UK Strikes Trio of Trade Deals in May

May 28, 2025 | , , , , , , , , , , , , , , , , , , , ,

The UK government has made major strides in strengthening its international trade relationships this May, concluding three key agreements with India (6 May), the United States (8 May), and the European Union (19 May).

These agreements could reshape trade routes and sourcing decisions, reduce costs, and create new opportunities for exporters and importers alike. With further negotiations under way with Gulf nations, the UK is expanding its global footprint.

UK-EU Agreement Reduces Border Friction
The updated UK-EU agreement, the first substantial step forward in post-Brexit cooperation, sets out revised terms for trade, fishing rights and defence collaboration. Of particular note is the reduction in bureaucracy around food shipments, with most routine checks on animal and plant products travelling between the UK and EU scrapped.

This could significantly ease the administrative burden and reduce delays for companies dealing in perishable goods. However, details on how the agreement affects the movement of non-food goods, including machinery, textiles and other industrial or consumer products, remain to be clarified.

While the deal does not represent a return to the frictionless trade of the pre-Brexit era, it is an encouraging signal that practical cooperation is possible. For businesses that rely on predictable cross-border movements, this agreement may help restore a degree of confidence.

US Agreement Offers Narrow, Targeted Relief
Despite being framed as a “trade deal”, the UK-US agreement is a limited, sector-specific tariff arrangement rather than a full-scale free trade agreement. That said, it delivers tangible relief in several key areas.

For UK exporters of vehicles, the US has cut its tariff from 25% to 10%, but only for up to 100,000 vehicles annually. This mirrors the volume of UK exports in 2024, but it places a hard ceiling on further growth, with exports above that threshold subject to a 27.5% tariff.

The removal of 25% tariffs on UK steel and aluminium also brings welcome relief to manufacturers. However, these benefits come with conditions, including expected quotas and continued duties on certain products made with these metals, such as gym equipment and industrial machinery.

While the UK has dropped some tariffs on US food and agricultural products, reciprocal benefits for UK exporters beyond the automotive and metal sectors remain limited. A blanket 10% US tariff still applies to most other UK goods, and a 25% tariff on UK automotive parts remains in place. Details on additional product categories, including consumer goods and manufactured components, are expected in due course.

The deal is a step forward, but it leaves a patchwork of tariffs and quotas that will require careful navigation. Legal and regulatory uncertainties will persist in the months ahead as negotiations continue and further details emerge.

India Deal Signals Long-Term Growth Potential
The UK’s agreement with India stands out as the most comprehensive and forward-looking of the three deals. It includes significant tariff reductions and market access improvements across a wide range of products, and is forecast to increase bilateral trade by £25.5 billion annually by 2040.

UK exports set to benefit include whisky, gin, aerospace components, medical devices, cosmetics, and high-end vehicles. In return, the UK will lower tariffs on Indian exports such as clothing, footwear, frozen foodstuffs, jewellery, and processed goods.

For importers, the deal offers more competitive access to one of the world’s fastest-growing economies. For exporters, it opens the door to India’s expanding middle class, which is already larger than the entire population of the EU and is hungry for high-quality, internationally branded products.

Beyond tariffs, the agreement promises to streamline customs procedures and reduce non-tariff barriers, improvements that will be welcomed by any business frustrated by red tape or unpredictable clearance processes. However, the full legal text is yet to be published, and the final impact will depend on detailed implementation rules, particularly around rules of origin and product classifications.

Looking at Gulf Nations Opportunities
Speaking to the BBC on 20 May, Chancellor Rachel Reeves confirmed that the UK’s next strategic focus is on securing trade agreements with countries in the Gulf, including Saudi Arabia, the UAE and Qatar. Ongoing discussions aim to boost UK exports of food and drink, renewable energy technologies, and manufactured goods, while encouraging more inward investment.

Reeves also clarified that the government is “not looking to have trade negotiations” with China, which draws a line under speculation about future UK-China trade relations for the foreseeable future.

Implications for UK Businesses
For UK businesses, whether they import raw materials or finished goods, or export to overseas markets, these deals bring both opportunity and complexity. While tariff reductions and customs streamlining can offer immediate cost savings and efficiency gains, the sector-specific and quota-based nature of the agreements means that success will depend on careful planning and informed decision-making.

The three deals signal a broader shift in the UK’s trade strategy, one that favours targeted, bilateral agreements over sweeping free trade pacts. They also reflect a pragmatic effort to strengthen links with fast-growing economies and key strategic allies.

As implementation details unfold and further negotiations continue, UK businesses will need to stay agile, review their supply chains, and consider how to best take advantage of the new landscape.

Metro’s established freight services, in-house customs brokerage, and on-the-ground teams in both India and the United States mean we’re uniquely placed to help UK businesses respond to this new trade landscape.

Whether you’re reviewing sourcing strategies, navigating new tariffs, or planning market entry, our experts can support you with compliant, cost-effective solutions across every mode and market.

EMAIL Managing Director, Andrew Smith to explore how we can optimise your global trade strategy.

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Tariffs, Complexity and Opportunity

May 27, 2025 | , , , , , , , , , , , , ,

As the United States recalibrates its tariff landscape, importers (and DDP exporters) are navigating a rapidly shifting environment. With Section 301 tariffs on Chinese goods still firmly in place, it has never been more critical to understand which tariffs apply and how to calculate them.

In mid-May 2025, the US and China agreed to a temporary 90-day pause, reducing some of the steepest retaliatory tariffs introduced earlier this year. As a result the “Liberation Day” tariffs of 145% were reduced to 30% for a limited set of goods.

However, the vast majority of Section 301 tariffs of >20%, imposed since the original US-China trade war in 2018, remain fully in effect. These apply to thousands of products, from electronics and machinery to apparel, plastics, and consumer goods.

Even with the temporary relief, many Chinese imports still face aggregate duty rates between 25% and 45%, and in some categories even higher, depending on classification.

Meanwhile, other major trading blocs continue to face pressure:

  • United Kingdom: 10% for automotives, capped at 100,000 vehicles annually 10% blanket tariff for most other goods including consumer goods, machinery, and textiles
  • Canada & Mexico: A 25% duty now applies to most goods, with energy imports from Canada also hit by an additional 10% levy.
  • European Union: Proposed 50% tariffs have been postponed until 9 July, but the delay only adds to uncertainty.
  • Rest of World: Many categories of industrial and consumer goods continue to carry elevated Most-Favoured Nation (MFN) rates, while countries without a preferential trade agreement with the US face duties ranging from 5% to 25%, depending on classification.

This fragmented tariff regime has introduced significant compliance risk, particularly for shippers working across multiple geographies.

Compliance is Complex—and Getting it Wrong is Costly
With tariffs now applied differently by origin, product type, and trade agreement status, accuracy in classification and valuation is critical. Errors can lead to underpayment (and penalties), overpayment (and lost margin), or shipment delays.

Key areas of risk include:

  • HS Codes (Harmonised System codes): A single digit variation can shift a product from a 5% duty rate to 25%. For example, a screw compressor may fall under HS code 8414.80.16 (duty-free) or 8414.80.90 (5.0%).
  • Country of Origin Rules: Manufacturing in multiple countries complicates origin determination. A shirt assembled in Vietnam from Chinese fabric may not qualify for any duty relief under existing agreements.
  • Valuation: Freight, insurance and packaging must be properly declared when calculating the dutiable value. Missteps here lead to unexpected cost and audit risk.

For exporters selling DDP, the challenge is even greater: you’re liable for these duties, meaning you absorb the cost of any errors. In today’s environment, even small misclassifications can compound across shipments, eroding profitability.

Turning Tariffs into Opportunity
While challenging, this tariff environment also presents strategic opportunities for those who are prepared:

  • Supply Chain Diversification: Shifting sourcing to countries with lower US duty rates can generate meaningful savings. Even partial shifts can de-risk exposure.
  • Tariff Engineering: By adjusting product configuration or final assembly location, shippers can legally change a product’s classification or origin. For instance, repackaging or minor reassembly in a third country may reduce duty rates.
  • Bonded Warehousing & FTZs: Storing goods in US Foreign Trade Zones or bonded facilities can defer, reduce, or eliminate duty payments, especially when re-exporting or assembling in the US before domestic release.

Amid rising costs and intense global competition, such strategies can help turn tariff exposure into a competitive advantage.

We combine trade compliance expertise, global freight execution, and strategic planning to help you manage tariff risk and unlock supply chain opportunities.

  • Expert customs brokerage teams based in the US
  • Product classification and duty calculations
  • Duty mitigation strategies, including bonded warehousing
  • Trade lane analysis and landed cost modelling
  • Supply chain rerouting and logistics reconfiguration

EMAIL Andrew Smith, Managing Director, to learn how Metro help you stay compliant, minimise supply chain risk, and unlock opportunities.

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US and India Trade Deals Open Doors for UK Traders

May 13, 2025 | , , , , , , , , ,

Two landmark trade agreements with the US and India promise to reshape supply chain opportunities for UK importers and exporters. Both deals offer a mix of immediate tariff relief and long-term potential to diversify sourcing and boost exports.

The newly signed UK-US agreement has reduced US tariffs on British automotive exports from over 25% to 10%, with an annual cap of 100,000 vehicles. While this cap closely matches current UK export levels, the reduced tariff eases pressure on British vehicle manufacturers, particularly those which had previously paused US shipments amid cost uncertainty. The agreement also removes the 25% tariff on UK steel and aluminium, helping lower input costs for UK manufacturers supplying US markets. However, US tariffs remain high for certain automotive parts and some categories of goods.

The agreement marks the first major trade pact since the imposition of US “Liberation Day” tariffs. While the deal falls short of a comprehensive free trade agreement, it provides immediate relief for supply chains and signals a willingness to continue negotiations on broader market access. The US has also committed to fast-tracking UK goods through customs, helping to ease some of the red tape associated with transatlantic trade.

In parallel, the long-awaited UK-India free trade agreement opens up new avenues for fashion and footwear supply chains. Tariffs on over 90% of UK exports to India, including clothing and footwear, will be phased out over a 10-year period. For Indian goods entering the UK, the deal eliminates nearly all levies, offering UK retailers access to competitive manufacturing without compromising quality.

The deal is particularly attractive for UK footwear brands and fashion houses already sourcing from India’s strong leather and non-leather production base. The expected reduction of tariffs and customs barriers is likely to enhance cost competitiveness and shorten lead times. With India’s middle class growing steadily—accounting for nearly a third of its population—the market also presents growing demand for high-quality, internationally recognised UK brands.

At the same time, the agreement offers UK fashion retailers a timely opportunity to diversify sourcing strategies away from markets where rising costs and geopolitical instability have made supply chains increasingly fragile. Industry experts believe some fashion retailers could improve margins by double digits once they fully leverage the benefits of the India deal.

For UK automotive exporters, the India pact includes a commitment to reduce tariffs on UK car exports from well over 100% to 10%. Although the final details of quotas and implementation remain under discussion, it represents the first step towards opening India’s protected automotive market to British manufacturers.

Both trade agreements offer UK businesses critical alternatives at a time of global uncertainty. They present clear potential for easing supply chain costs and improving market access for two key industries that underpin UK manufacturing and retail exports. However, much will depend on the full legal texts and how effectively the provisions are implemented in practice.

The new US and India trade agreements offer real and immediate opportunities. Whether you are looking to streamline transatlantic automotive exports, expand your retail footprint, or diversify fashion and footwear sourcing, Metro can help you unlock the full benefits of these landmark deals.

With decades of experience supporting UK importers and exporters, our expert team understands how to navigate new trade frameworks and optimise supply chain performance. We can help you fine-tune logistics, reduce costs and simplify customs compliance, to take advantage of the new tariff reductions and market access opportunities now on offer.

EMAIL Andy Smith, Managing Director, to find out how we can help you capitalise on these positive changes and build a resilient, agile supply chain ready for growth.

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US-China Tariff Pause Offers Fashion Breathing Space

May 13, 2025 | , , , , , , , , ,

Fashion brands and retailers around the world have welcomed a temporary easing of tensions between the US and China, but remain wary of the wider uncertainty still gripping global supply chains.

A 90-day agreement announced on Monday May 12 will, from May 14, reduce US tariffs on Chinese goods from 145% to 30%, and cut Chinese tariffs on US goods from 125% to 10%. While the move has offered immediate relief, industry bodies warn it does little to address the long-term challenges facing the fashion sector.

The announcement sparked a wave of activity as brands reinstated production orders they had previously paused. The high tariff levels had forced many companies to cancel orders, divert production to Vietnam, Cambodia, and Sri Lanka, or slow shipments into the US and Europe. The easing of duties now gives brands the opportunity to fulfil autumn and holiday orders with a degree of cost certainty, albeit only for a limited window.

Trade associations remain cautious. The Footwear Distributors and Retailers of America called the agreement “a step in the right direction” but emphasised that even the reduced 30% tariff remains a significant burden. The fashion industry, with its typically thin margins, has found it difficult to absorb such additional costs. Retailers and importers warn that prices will inevitably be passed onto consumers, fuelling inflationary pressures across apparel and footwear categories.

The American Apparel & Footwear Association (AAFA) noted that this tariff rate applies in addition to any existing duties and customs fees, potentially pushing total charges on certain items to around 50%. Smaller brands, in particular, lack the scale to mitigate these costs and are likely to face greater challenges.

The agreement doesn’t not reverse the abrupt end of the de minimis exemption, which previously allowed shipments valued at <$800 to enter the US duty free. Fast fashion and eCommerce platforms that relied on this customs regime have been forced to rethink their business models.

Retailers may now attempt to bulk-ship goods to US warehouses during the 90-day window to avoid further disruption.

Supply chain experts say the fashion industry will continue to face high levels of uncertainty. The temporary nature of the deal, coupled with the risk of retaliatory tariffs on goods from countries like Vietnam and Cambodia, means many brands are proceeding with extreme caution. Some analysts warn that if brands rush to resume production, a surge in orders could overwhelm manufacturers and create a cargo capacity crunch, pushing air and ocean freight rates even higher.

The longer-term outlook remains unclear. Fashion companies continue to seek more flexible and diversified sourcing strategies, hedging against the risks of geopolitical instability. Industry leaders have urged policymakers to use the current window to work towards a permanent, predictable trading framework.

For now, the temporary tariff pause has delivered short-term relief, but it is widely viewed as a fragile reprieve rather than a definitive resolution. As one trade association put it, fashion brands will “enjoy this time” but remain braced for further twists in the turbulent global trade environment.

With decades of experience supporting leading fashion brands and retailers, we understand the unique demands of global fashion supply chains. EMAIL Andy Smith, Managing Director, to navigate today’s uncertainty and optimise your international logistics and sourcing strategy with confidence.

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