White House 1440x1080 1

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.

Savannah Port

Shipping at Risk from $1.5M Port Charge

Apr 1, 2025 | , , , , , , , , , , , , ,

To combat China’s dominance in shipbuilding and revive the US maritime sector, a sweeping proposal from the Trump administration to penalise container ships built in China has sent shockwaves through the global shipping industry. The policy would levy up to $1.5 million per port call on Chinese-built or Chinese-operated vessels entering American ports. 

The scale and scope of these potential fees have alarmed the world’s largest container shipping lines, who warn that the move could disrupt global supply chains and dramatically increase costs for shippers and ultimately consumers.

China has become the undisputed powerhouse of global shipbuilding, accounting for over 80% of all newly built container vessels. The largest ocean carriers — including MSC, Maersk, CMA CGM, and Hapag-Lloyd — have heavily invested in Chinese shipyards due to their cost-efficiency, financing advantages, and output capacity. For instance, MSC, the world’s largest carrier, has 24% of its fleet built in China, with 92% of its order-book also tied to Chinese yards. Maersk and CMA CGM show similar reliance, with well over half of their future tonnage scheduled from China.

The proposed fees would apply not only to Chinese-owned carriers like COSCO, but also to foreign lines that have Chinese-built vessels in their fleets or on order. This has drawn strong opposition from the industry, with MSC CEO Soren Toft warning that the policy could add between $600 and $800 to the cost of moving a single container.

That cost, he stressed, would either have to be absorbed by carriers, prompting a withdrawal from US trades, or passed down the supply chain to cargo owners and consumers.

To avoid the financial hit, carriers may consolidate services, eliminating calls at smaller ports and serve only major hubs. This will inevitably create congestion at the terminals and strain inland transport, as containers pile up in fewer locations lacking the right mix of trucks, chassis, and rail capacity.

Reduced carrier capacity, port consolidation, and higher operational costs will all converge to drive prices up. As Andrew Abbott, CEO of ACL, put it bluntly, the plan “would cause a freight rate explosion that would dwarf the COVID-era increase.”

US Trade Representative (USTR) Hearings
The policy has mobilised intense opposition, with over 500 submissions made to the USTR, and dozens of executives testifying at public hearings in recent weeks. Alternative mechanisms such as phased implementation, tiered fees based on vessel type or service region, or per-container charges instead of flat port call levies have been proposed, with the USTR’s final proposals due later in April.

The Trump administration argues that these measures are necessary to rebuild US maritime capacity and ensure national security. But critics note that the US lacks the infrastructure, workforce, and financing mechanisms to quickly scale up shipbuilding, and that domestic vessels are not only four times more expensive to build but also cost double to operate. Even if construction began tomorrow, new ships would not be delivered for years and US exports and imports would suffer in the meantime.

If implemented in its current form, the port fee proposal would reshape global liner networks, drive up transportation costs, and jeopardise the competitive position of US exporters. It may also lead to structural realignments in trade patterns, with cargo diverted to Canadian and Mexican ports, and long-term erosion of US port and logistics competitiveness.

We’re working closely with clients as we monitor regulatory developments, ready to react and adapt container shipping strategies in real time. If your supply chain depends on US port access, now is the time to assess your exposure and prepare contingencies.

EMAIL our Managing Director, Andrew Smith, to learn how we can protect your network, manage cost risks, and keep you competitive — no matter how the tide turns.

Bridge on ship

Sea Freight Market Review

Mar 18, 2025 | , , , , , , , , , , , , , , , , , , ,

The global ocean freight market is undergoing a period of transition in 2025, influenced by regulatory changes, shifting trade patterns, and evolving carrier alliances. While demand remains strong in key regions, rate volatility persists due to supply chain disruptions and excess capacity.

The ocean freight sector is experiencing considerable adjustments as carriers adapt to regulatory and economic shifts. The EU ETS expansion now covers 70% of maritime emissions, leading to higher surcharges and operational costs for carriers.

Supply/Demand
Capacity growth is projected to slow to 5% in 2025 after record vessel deliveries in 2024. However, supply chain disruptions persist due to global port congestion and ongoing Red Sea diversions are soaking up excess capacity.

The restructuring of major shipping alliances is further shaping the industry landscape, with the dissolution of 2M, the formation of the Premier Alliance by THE Alliance, and the launch of Gemini Cooperation in February 2025.

Proforma scheduled liner capacity on the Asia-North Europe trade is set to be reduced by around 11% once the transition to the new shipping alliance set-up is complete. The combined weekly capacity drop of some 28,000 TEU equates to a total reduction of 221,000 TEU across all services. However, the number of individual weekly sailings between Asia and North Europe is expected to increase from 26 (under the previous alliances and standalone services) to 28, potentially improving frequency and flexibility for shippers.

Global port congestion remains a pressing issue, particularly in China and vessel utilisation remains high, with only 0.2% of the global liner fleet currently idle. The industry is also witnessing an increase in blank sailings, with 47 announced through mid-April, affecting Transpacific and Asia-Europe trade routes. The Transpacific market, in particular, is experiencing notable disruptions, with 43% of blank sailings concentrated in this corridor.

Expectations that Red Sea diversions would ease, returning an estimated 2 million TEU to global circulation, were dampened over the weekend following missile exchanges between the US and Yemen’s Houthi rebels. MSC CEO Soren Toft stated, “Suez simply isn’t safe to transit at the moment, and there’s no immediate prospect of a return.” This continued instability may prolong disruptions and return pressure on rates.

Market
Meanwhile, the Shanghai Containerised Freight Index (SCFI) has dropped 17% since January and despite strong cargo demand in select regions, the market remains vulnerable to downward pricing pressures.

Demand remains resilient but uneven, with North America and India seeing stronger performance, whereas Europe’s slower economic growth is weighing on export activity. Chinese exports have exceeded expectations, driven in part by early shipments ahead of potential tariff adjustments.

The Drewry World Container Index (WCI) has reached its lowest level since January 2024 and while rates are below their pandemic-era peaks they are still 79% higher than pre-pandemic averages from 2019.

At Metro, our fixed-rate agreements on popular shipping routes provide a practical safeguard against rate volatility, offering predictable costs for effective budgeting. Whether you’re managing high-volume trade lanes or seeking greater stability for your supply chain, our tailored solutions can help you thrive in 2025.

To discover how Metro can strengthen your business and provide peace of mind, EMAIL our Managing Director, Andy Smith, today.

Category: United States

4PL | Automotive | Chemical | eCommerce | Exports | Foodstuffs | Hazardous | International Trade | News | Project | Retail | Sea | Supply Chain | United States

Latest News in this category