The USA has significantly altered its trade policies by implementing new tariffs on imports from Mexico, Canada and China, which will take immediate effect from 5th March 2025.
Both Mexico and Canada imports will now face a trade tariff of 25% of goods imported into the USA, with Canadian energy imports facing a 10% tariff.
Tariffs on Chinese goods were also increased by 10%, which means a total tariff now of 20%.
President Trump has introduced these tariffs due to the concern over trade imbalances.
In the short term, businesses are facing increased production costs which is likely to mean higher prices for consumers, leading to concerns about economic growth and inflation.
Currently the UK government is actively engaged in negotiations for a bilateral trade agreement, and only last week President Trump was confident that an agreement can be reached to avoid imposing tariffs on UK imports into USA.
It is possible that UK exporters can find new opportunities arising from the USA’s new trade tariffs, making UK products more attractive to the US market.
