Navigating the latest US tariff changes: What importers need to know

The United States has recently implemented increases to import tariffs, and while this presents new challenges, it also offers opportunities for businesses to reassess and optimise their supply chains.

If you're already importing into the US, you'll be familiar with key information, such as product composition, HTS (Harmonized Tariff Schedule) codes and country of origin — all of which determine how much duty is applied.

Watch this video to discover what tariffs are and the role they play in international trade for small businesses:

With these latest changes, 'country of origin' has become an especially important factor, particularly for companies with manufacturing operations across different regions.

The impact is significant — importing into the US will now come with higher costs for businesses. Additionally, if other countries respond with increased tariffs on US exports, it could create broader trade challenges that businesses will need to plan for strategically.

Watch this video to understand the Rules of Origin:

Proactive strategies to manage increased tariffs

Many businesses are already adapting to the changes by exploring a range of strategic solutions, including:

1. Negotiating lower manufacturing costs with suppliers

By working closely with suppliers, businesses can renegotiate contracts or bulk order terms to reduce unit costs, helping to absorb some of the additional tariff expenses without impacting retail prices significantly.

2. Relocating production to countries less impacted by higher tariffs

Shifting manufacturing to countries with lower or no tariffs under US trade agreements can significantly reduce duty liabilities, especially for labour-intensive or high-volume products.

3. Adjusting manufacturing processes to change the country of origin

Making substantial changes or finishing products in a third country can legally alter the product’s origin, potentially qualifying it for lower tariff rates under US Customs rules.

4. Nearshoring production — including moving some operations into the US

Bringing production closer to the end market (e.g., into North America) can cut shipping times, reduce exposure to tariffs and improve supply chain resilience.

5. Introducing price increases to help offset added costs

While sensitive, modest price increases passed on to customers can help recover some tariff-related losses — especially if communicated transparently and tied to quality or value improvements.

6. Reducing product volumes or ranges imported into the US

Streamlining SKUs or shipment frequency allows businesses to better control logistics costs and avoid overstocking in a high-tariff environment.

7. Reviewing and restructuring product costings for improved transparency and control

A detailed review of cost structures — including materials, labour, shipping and duties — can uncover inefficiencies and guide more strategic pricing or sourcing decisions.

8. Using bonded warehousing to defer or reduce duty payments

Storing goods in a bonded warehouse within the US allows businesses to delay payment of duties until the product is sold or leaves the warehouse —improving cash flow and flexibility.

9. Reassessing the need to import into the US, depending on market performance and business priorities

For lower-performing products or markets, it may be more strategic to pause or limit US imports and redirect resources toward more profitable regions.

These strategies highlight the importance of being flexible and informed when it comes to global operations.

Implications for UK-based businesses

For companies based in the UK and Ireland, the tariff changes may affect both imports from the US and exports to it, particularly if raw materials are sourced from or sold to the US. This can influence profit margins and pricing models, especially for small businesses.

To respond effectively, businesses must have complete visibility of their supply chain costs, which typically include:

• Raw materials

• Manufacturing

• Warehousing

• Domestic and international shipping

• Import/export duties

• Product returns

Understanding these cost components allows for data-driven decisions on where efficiencies can be found and where change is most beneficial.

The role of trade agreements

Another positive aspect to consider is the potential cost-saving benefits of trade agreements. Many countries have bilateral or multilateral agreements in place that either reduce or eliminate tariffs on specific goods, depending on the country of origin and destination.

These agreements operate using HS (Harmonized System) codes and understanding them can unlock savings and ensure compliance. Examples such as REX (Registered Exporter System) or RGR (Returned Goods Relief) can provide additional advantages, depending on your trade routes.

What’s next for freight and warehousing?

At this stage, it’s too early to predict the full impact on freight rates, but with potential reductions in shipping demand, there’s a possibility of lower transport costs later in the year. This will depend on shipping schedules, carrier capacity and changes in global demand.

For businesses not yet warehousing in the US, this could be an opportunity to explore. Establishing a local warehouse may help reduce lead times and improve service levels. However, factors such as tariff costs, inventory levels, product size and weight and parcel shipping rates must all be carefully considered. For example, parcel rates in the US can be higher due to limited carrier competition, particularly if you're shipping coast-to-coast from a single warehouse.

Looking ahead: Turning challenges into opportunities

While tariff increases naturally introduce cost pressures, they also encourage innovation and improvement in global supply chains. Businesses now have the chance to:

• Diversify sourcing locations

• Enhance supply chain resilience

• Explore cost-competitive manufacturing alternatives

• Support growth in emerging markets

Ultimately, staying informed and agile will position companies to make the most of these changes — not just to mitigate costs but to uncover new growth potential.

Next steps

Now is the ideal time to review your current supply chain, evaluate cost structures and explore new sourcing strategies. With the right approach, these changes can be a catalyst for long-term improvement and competitive advantage.

Relevant resources

• What is a supply chain? What is supply chain management?

• US president Donald Trump announces 10% tariffs on imports from the UK