Trump's trade reset
Why global companies must prioritise customs strategy and duty optimisation
With President Trump’s return to office in 2025, global trade policy has entered a new era of disruption and strategic realignment. The administration’s renewed focus on tariffs, ranging from broad-based import duties to targeted sectoral measures, signals a fundamental shift in the global trade environment. For UK-based companies with international operations, this is not just a policy change, but a call to action.
A Shifting tariff landscape
While the precise details of the new U.S trade measures remain in flux, several key themes are already shaping the direction of policy.
- Broad-based tariffs
A universal baseline tariff of 10% on all imports into the U.S has been implemented. This measure is intended to encourage domestic manufacturing and reduce reliance on foreign goods, potentially reshaping global sourcing strategies. - Heightened measures on China
While a high-level agreement to reduce tariffs between the U.S and China appears to have been reached, the tariffs in place remain substantial, and the current reprieve may only prove temporary. - Sector-specific tariffs
Industries such as steel, aluminium, semiconductors, automotive, and pharma are being prioritised for additional protection. These targeted tariffs are said to be intended to safeguard national security and rebuild domestic industrial capacity. - Reciprocal tariff mechanisms
The U.S has also explored tariffs that mirror the trade barriers imposed by other countries. This “fair trade” approach aims to level the playing field and incentivise trading partners to reduce their own restrictions. The reduction of reciprocal tariffs to 10% for some countries may only prove temporary.
Implications for global companies
For large businesses operating across borders, these developments represent a material shift in the global trade landscape.
- Cost structures are changing
A universal tariff could significantly increase landed costs across product categories, impacting pricing, profitability, and competitiveness. - Supply chains are under pressure
Companies with exposure to China or reliant on US-bound exports must now navigate a more fragmented and politicised trade environment. - Compliance risk is rising
With increased scrutiny on origin, classification, and valuation, customs compliance is becoming a strategic priority.
The UK and EU perspective
While much attention has focused on US-China tensions, UK and EU exporters are also directly affected. The reinstatement of tariffs on steel and aluminium, alongside the broader tariff proposals, places significant pressure on transatlantic trade.
The UK government has secured the outline of a deal aimed at mitigating the impact of the Trump tariffs, while also exploring closer regulatory alignment with the EU to reduce internal trade friction.
For global companies, this means navigating dual regulatory regimes and preparing for divergent trade responses across key markets.
Strategic actions for large companies
To mitigate risk and unlock value in this volatile environment, large organisations should consider the following strategic actions:
- Conduct a comprehensive customs health check
Analyse customs data across jurisdictions to identify exposure to current and proposed tariffs.
Map out your customs footprint to understand where optimisation opportunities exist. - Maximise Free Trade Agreement (FTA) benefits
Ensure full utilisation of FTAs wherever possible.
Implement robust origin compliance processes. - Review supply chains
Explore nearshoring, dual sourcing, and regionalisation to reduce tariff exposure.
Consider shifting final assembly or value-added operations to FTA-aligned countries. - Leverage duty mitigation tools
Consider the use of customs special procedures and authorisations to mitigate duties and support compliance.
Use customs data analytics to identify duty reclaim opportunities. - Scenario planning for policy volatility
Model financial impacts of tariff changes under multiple scenarios.
Build agility into customs and trade compliance teams.
Disruption to strategic advantage
The Trump administration’s evolving trade policy is not a temporary disruption, it’s a structural shift. For UK-based companies with global operations, this is a critical moment to elevate customs and trade strategy to the boardroom.
Businesses that treat trade compliance as a strategic tool, not just a regulatory obligation, will be best positioned to thrive in this new era.
We work closely with clients to turn trade complexity into a competitive advantage. Whether you're navigating new tariffs, reassessing your supply chain, or implementing duty optimisation strategies, we can support.
To explore how we can help your organisation respond to these developments, please contact Ian Worth or your usual Crowe contact.
