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UKFT update on US tariffs (April 2025)

03/04/2025

On 2 April 2025 the President of the United States (POTUS) signed a new Executive Action (EA) to establish what he calls “Reciprocal Tariffs” over and above all normal duty rates to attach to goods entering the US from all countries depending on where they are made.

The EA established a new baseline increase in tariff across all countries of 10% in addition to country-by-country tariffs on top.

On 9 April, POTUS announced that the US would “pause” (meaning “suspend”) the additional country-by-country additional tariffs for a period of 90 days with the exception of China (whose additional tariff of 125% has come into effect).

For goods made in all other countries, including the UK and the EU, the baseline additional tariff of 10% applies on top of the normal duty date which applies to the product.

UKFT has prepared a comprehensive document of Frequently Asked Questions (FAQs) on this issue which is available for members. To access, please contact info@ukft.org

If you are not a member and would like to join, please email charlotte.rainey@ukft.org

Adam Mansell, CEO of UKFT, said: “The US is the UK’s second largest export market for fashion and textiles and the new US tariff regime will benefit no-one. It will lead to reduced exports from the UK and will impact UK fashion and textile manufacturers, at time when they are already facing unprecedented cost increases. Although the 10% tariff on UK exports is lower than the 20% on EU products, it adds to existing tariffs, making some luxury fabrics from the UK subject to a 35% tariff in the US. At the same time, UK retailers and brands that manufacture in countries such as Vietnam and Bangladesh and ship directly to the USA will face huge increases in costs. The new US tariffs will also mean increased prices for US consumers, and it will make the cost of raw materials for US manufacturers more expensive.”

How you can help:

  • Media relations: Would you be willing to speak to the press about the impact of the new U.S. tariffs on the UK fashion and textile sector? UKFT member businesses that are open to being a spokesperson on the issue, please let us know – we would appreciate your support in raising industry concerns.
  • Share case studies and data: If your business or brand is affected by the new US tariffs, please share evidence and data with UKFT to allow us to create a clear picture of the impact on our sector.

UKFT members: Please get in touch via info@ukft.org