UK exporters have been warned to urgently review their export documentation or risk being hit with tariffs of up to 54 per cent due to supply chain “blind spots”.
David Hooper, Managing Director of Warwickshire-based international trade consultancy Hooper & Co, said it is crucial firms are aware tariffs will be applied based on the country of origin, not the country of export.
This means goods manufactured outside the UK but shipped from the UK to the US could be susceptible for far higher charges than UK-origin shipments.
The alert from Hooper & Co follows sweeping changes to American trade policy announced this week by President Donald Trump, which include a new reciprocal tariff plan that could see some goods face tariffs of up to 54 per cent depending on their country of origin.
Under the new rules, the US will impose a baseline 10 per cent tariff on imports from all countries, with country-specific increases for major trading partners – including 34 per cent on Chinese goods and 20 per cent on EU products – on top of existing rates.
While UK-origin goods will face a 10 per cent tariff, this advantage only applies where documentation proves eligibility.
David said: “We’re urging all UK exporters to immediately audit their supply chains and ensure they have robust documentation in place, especially when it comes to the origins of goods and any potential blind spots that could incur unexpected charges.
“A product made in China but re-exported from the UK will face a tariff of up to 54 per cent – unless it qualifies under origin rules as having been substantially transformed in the UK.
“If your paperwork doesn’t prove UK origin, your goods could be incorrectly classified – and your business could be hit with extra costs and delays.”
The first phase of tariffs is set to come into force from April 5, with full implementation expected by April 9, leaving businesses with little time to respond.
David said this makes having a firm grasp of Certificates of Origin, Rules of Origin compliance, and supply chain transparency extremely critical, especially given the announcement could have been worse for UK businesses.
He said: “With such short implementation timelines and variable tariff rates depending on origin, this is one of the most challenging compliance environments UK exporters have faced in recent years.
“UK businesses must therefore act now to protect their margins and avoid disruption.
“Despite the challenges, the 10 per cent tariff applied to UK-origin goods is, ultimately, significantly lower than those faced by EU and Chinese exporters.
“UK manufacturers who can demonstrate clear origin have a potential competitive edge in the US market – but only if they get their documentation right.”
Hooper & Co and its sister company Independent Freight Solutions are advising clients across all sectors on how to prepare for the new tariffs, including reviewing origin documentation, assessing supply chain risk, and ensuring customs compliance ahead of implementation.
David also warned that the reciprocal tariff schedule, introduced under national emergency powers, could escalate further if trading partners retaliate.
“China is expected to respond with countermeasures, and the EU has already signalled its intention to introduce tariffs of its own,” he said.
“UK exporters are entering a period of heightened regulatory complexity and trade volatility. It’s so important they have a solid understanding of their current activity and processes to avoid any further headaches.”