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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.

US graph

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.

Indian port congestion looms

Cargo Rush Sparks Port Congestion and Equipment Shortages

May 26, 2025 | , , , , , , , , , , , , , , ,

The recent 90-day pause on US tariffs on Chinese imports has sparked a dramatic surge in demand, as American importers scramble to front-load shipments ahead of the 14 August deadline. The demand spike is now placing considerable pressure on supply chains across Asia and Europe, threatening to disrupt global freight flows into the traditional peak season.

Freight bookings from China to the US rocketed 300% in just one week, marking the highest volume levels of the year so far, as US importers use the temporary reprieve to push through previously delayed shipments.

While the tariff rate remains high at 30%, it is significantly lower than the 145% rates imposed earlier in the spring. Importers are moving quickly to take advantage of this limited window of cost certainty, but the consequences are already being felt far beyond China’s borders.

With ships now flooding back into Chinese ports, congestion has rapidly intensified:

  • Shanghai and Qingdao are experiencing berth waiting times of 24–72 hours.
  • Ningbo reports delays of 24–36 hours, while the congestion there is now worsening due to diverted volumes.
  • Busan is reporting 72-hour waits at the PNIT Terminal.
  • Singapore and Yokohama are also affected, with waiting times up to 36 and 24 hours, respectively.

Carriers are reporting widespread bunching and missed berths, forcing some vessels to skip port calls entirely. Simultaneously, container availability is tightening, especially in Shanghai and Ningbo, where carriers have begun rationing equipment based on rate levels and space commitments. Maersk and HMM are among those limiting container release in an attempt to balance capacity with available slots.

Further down the line, ports in southern China, Southeast Asia, and even intra-Asia trades are also reporting backlogs. Shenzhen, Hong Kong, Ho Chi Minh City, and Port Klang have all seen yard utilisation rise and service delays build.

Strain Spreads to Europe as Container Flows Disrupt
The congestion is not limited to Asia. As carriers reposition vessels and adjust service rotations to meet surging demand on eastbound transpacific routes, European ports are beginning to feel the knock-on effects.

In northern Europe:

  • Hamburg is facing 5–6½ days of berth delays,
  • Southampton and London Gateway are seeing 3-day waits,
  • Antwerp is experiencing severe disruption with delays extending to 15½ days,
  • Piraeus and Tangiers are also impacted, each facing waits of up to 4 and 3 days, respectively.

Labour shortages, reduced barge capacity on the Rhine, and tight schedules are compounding these delays. Meanwhile, rerouted vessels from Asia–Europe services are creating bunching at key transhipment hubs such as Bremerhaven and Hamburg, which in turn serve Scandinavia and the Baltic.

Equipment Shortages and Capacity Gaps Ahead of Peak Season
Container availability is expected to worsen in the coming weeks. With vessels already departing China at high utilisation levels, the return of empty containers and the repositioning of ships to Asia may not keep pace with demand.

If previously produced goods held in bonded warehouses are added to this surge in volumes during May, demand could increase by nearly 50%. A delay to June would ease the burden, but it could still be over 15%, which still represents a steep challenge ahead of the summer peak.

This front-loading of cargo to the US may lead to a sharp, compressed peak season starting now and stretching into mid-July, followed by potential equipment shortages and service volatility in August and beyond.

We are closely monitoring port performance, vessel schedules, and rate volatility across all major trade lanes, to support customers with:

  • Priority bookings and space management on transpacific and key routes
  • Equipment selection and container allocation strategies
  • Alternative routing and scheduling options to avoid bottlenecks
  • Global shipment visibility to SKU

EMAIL Managing Director Andrew Smith to discuss current conditions, risk mitigation, and booking options tailored to your business priorities.

Long Beach2

Tariff Pause Triggers Early Transpacific Peak Season

May 22, 2025 | , , , , , , , , , , ,

The 90-day suspension of US-China tariffs has delivered a sharp jolt to transpacific ocean freight, triggering an unseasonal spike in demand and pushing spot rates up significantly.

This unexpected policy reprieve has not only created a narrow window of predictability for US importers, but also accelerated peak season behaviours months ahead of the traditional schedule.

With booking volumes surging and available capacity still constrained, shippers are entering a period of extreme competition for space and elevated freight costs, especially on Asia–US West Coast lanes.

Since the announcement of the tariff pause, transpacific spot rates have climbed steeply. The Shanghai Containerised Freight Index (SCFI) rose by 14% last week, with further gains expected. This marks the largest weekly increase of 2025 so far and reflects mounting pressure on space and capacity across eastbound transpacific routes.

  • Shanghai–Los Angeles FEU rates have climbed 16% in just one week.
  • Shanghai–New York DEU rates jumped 19%.

While these levels remain well below pandemic highs, they are trending upward quickly, particularly as US importers race to bring in goods during the tariff pause window, which expires on 14 August.

Sudden and Significant Capacity Crunch
The spike in demand has exposed a capacity shortfall that many believed had stabilised. Carriers had withdrawn substantial tonnage from Far East–US West Coast services in April and May, anticipating a slower season. Now, those services are being rapidly reinstated in full as bookings rebound sharply.

Carriers have responded with unusual speed, with suspended loops returning across multiple alliances, vessels are being upsized to handle growing volumes, additional services are being announced and blanked sailings reversed.

Despite these adjustments, near-term capacity remains tight, especially due to ongoing vessel redeployments, congestion at Chinese ports, and bottlenecks at container freight stations (CFS) in China.

Adding to the live bookings, is a wave of previously manufactured cargo stored in bonded warehouses, which is expected to enter the market imminently.

If this stored cargo flows into the system during the remainder of May, demand could spike by 16% to 48% on top of normal levels. If shipments are delayed until June, the increase would ease to a more manageable 5% to 16%, but that assumes no further acceleration from early peak season orders.

Importantly, this analysis does not yet account for traditional peak season volumes, which are expected to surge in the coming weeks as US importers seek to front-load shipments ahead of the 14 August tariff deadline.

Challenges and Considerations
The rapid resurgence in volumes is pushing logistics networks to their limits. Shippers can expect tight space availability, higher rates, with ongoing volatility through June and July, possible rollovers, even on confirmed bookings, and longer dwell times, with delays at origin due to congestion

While carriers are acting quickly to rebalance networks, the sheer speed and scale of the demand rebound mean constraints are likely to persist through Q3.

As always, Metro is working closely with clients to minimise disruption and capitalise on available capacity. With robust freight forwarding capabilities, deep ocean carrier relationships, and on-the-ground presence in the United States, we’re helping customers:

  • Secure space and locked-in rates on core transpacific lanes
  • Prioritise high-value or time-sensitive cargo
  • Adjust routing strategies to reduce risk and maintain delivery schedules

With early peak season now well under way, proactive planning is essential. Space is already tightening, and costs will likely continue to climb in the lead-up to August.

If your business relies on Asia–US trade flows, EMAIL Andrew Smith today and learn how we will keep your supply chain running smoothly, despite the disruption.

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