President Trump announcement on April 9, of a 90-day pause on retaliatory tariffs for US trading partners outside China has given importers a brief window to recalibrate – but it has done little to stem the tide of disruption already sweeping through global supply chains. The dramatic 125% tariff hike on Chinese goods remains fully in force, and its impact is immediate.
Chinese exporters have reacted swiftly, with many cancelling shipments and raising prices by up to 70% for US consumers. Others are preparing to exit the market entirely. The fallout is reflected in the Bradstreet, US import bookings from Asia plunged to just 225,900 TEUs in the past week — down from around 633,000 the week before.
While some categories are exempt – including semiconductors, copper, lumber, pharmaceuticals, energy, and key minerals – the new baseline 10% tariff applies to all non-Chinese imports in addition to existing duties, hitting UK and EU exporters alike.
The UK has focused its negotiations on removing the 25% tariff on British-made cars, while admitting it will be difficult to sway Washington on the new 10% blanket tariff. The EU has taken a cautious approach: although member states back countermeasures, Commission President Ursula von der Leyen has committed to giving negotiations one final chance before retaliating.
Retailers and importers are already reacting, postponing fall and holiday purchase orders by 30–60 days and shifting sourcing to lower-tariff nations like Vietnam and Taiwan, where a 10% duty typically adds just 3% to retail prices. These markets are rapidly becoming attractive amid an increasingly volatile US-China landscape.
Meanwhile, pressure is building on US Customs and Border Protection (CBP). The increased complexity of tariff codes and documentation is creating more manual processing work, and staffing levels have not risen in line with demand. There is growing concern that CBP could be overwhelmed if volumes rise suddenly or new duties are introduced.
For now, the only certainty is continued volatility. Trade flows are being redrawn, sourcing strategies are in flux, and the longer-term consequences of this tariff upheaval are only just beginning to surface.
If you’d like to assess your supply chain exposure or explore contingency options, please don’t hesitate to reach out. We are on hand to support your business through these unpredictable times.
Get in touch with us to explore your options – from alternative sourcing routes to revised logistics strategies and customs planning.
