Some tariff relief for UK and China after US trade deals
The United States has reached two trade agreements with the United Kingdom and China, representing the first formal accords since the Trump administration’s announcement on 2 April of widespread tariff increases, referred to as “Liberation Day.” These agreements have significant implications for UK US trade tariffs.
Changes to UK-US tariffs
The agreement with the UK, signed on 8 May, maintains a 10 per cent reciprocal tariff on most UK exports. However, it introduces several changes affecting specific sectors within the realm of UK US trade tariffs. Tariffs on UK-manufactured automobiles will decrease from 27.5 per cent to 10 per cent for the first 100,000 vehicles imported each year. Any additional vehicles will be subject to a 25 per cent tariff.
While the auto tariffs were never designed to encompass the marine industry, there has been concern that several Harmonized Tariff Schedule (HTS) codes associated with auto parts may also apply to components used in marine manufacturing.
Section 232 tariffs on UK steel and aluminium — set to have hit the marine sector in particular — have been removed and replaced by a bilateral mechanism designed to address global overcapacity while supporting domestic industry. This removal is a key aspect of adjusting UK US trade tariffs.
The framework also includes provisions for increased access for US agricultural products such as beef and ethanol, which are projected to generate an estimated $5bn in additional exports. Other measures include simplified customs procedures and expanded US access to UK government procurement contracts. Commitments were also outlined in the aerospace and pharmaceutical sectors, with particular focus on giving US manufacturers favourable treatment within supply chains.
US-China trade reset
On Monday (12 May 2025), US and Chinese officials met in Geneva and agreed to a 90-day reduction in tariffs, in effect until 12 August, along with a resumption of structured trade consultations. The interim deal outlines a mutual tariff cut of 11.5 per cent. For the US, this results in a new rate of 30 per cent on Chinese imports. That rate includes a 10 per cent baseline tariff and a 20 per cent penalty related to China’s production of chemical ingredients used in fentanyl, designated under IEPPA.
Tariffs under Section 301, ranging from 7.5 to 25 per cent, and Section 232 remain active. China will keep its 10 per cent baseline tariff and has suspended planned retaliatory measures, including restrictions on rare earth exports.
The National Marine Manufacturers Association (NMMA) is reviewing the updated tariff schedules and agreement language to determine possible implications for the recreational boating sector.
Read all the latest news about trade tariffs and how they are affecting the marine sector globally.
