1 August 2026
Executive Summary
The United States has imposed new tariffs of between 10% and 12.5% on imports from approximately 60 trading partners, including the European Union and China.
The measures were introduced under Section 301 of the US Trade Act and are linked to concerns over the enforcement of forced-labour restrictions within international supply chains. They replace temporary tariffs that had recently expired and follow the US Supreme Court’s rejection of earlier measures imposed under emergency economic powers.
Although extensive product exemptions apply, the new tariff structure covers the overwhelming majority of US imports and signals that protectionist trade measures are becoming a longer-term feature of the global commercial environment.
UK Impact
UK businesses may experience:
- Increased costs where goods, components or raw materials move through US-facing supply chains.
- Greater customs scrutiny and demands for supply-chain evidence.
- Pressure from customers and suppliers seeking to renegotiate prices.
- Increased exposure under contracts that do not clearly allocate responsibility for tariffs.
- Reduced competitiveness for products containing components originating in affected countries.
- Longer lead times as manufacturers reconsider sourcing and production arrangements.
Although the measures are imposed by the United States, UK companies may be affected indirectly through multinational suppliers, European production networks and US customers.
Global Impact
China, Brazil, Australia and other affected trading partners have criticised the measures, creating the possibility of retaliatory action or further trade negotiations.
The wider concern is that tariffs are increasingly being used alongside sanctions, export controls and investment restrictions as instruments of national-security and industrial policy.
Businesses operating across several jurisdictions may therefore face a more fragmented trading environment in which sourcing decisions are influenced by political alignment as well as price and availability.
Our View
The principal risk is not one individual tariff increase, but the growing permanence and unpredictability of trade intervention.
Businesses should:
- Map their direct and indirect exposure to US-bound trade.
- Confirm the origin of important components and materials.
- Review contractual responsibility for tariffs, duties and customs delays.
- Strengthen forced-labour and supplier due-diligence procedures.
- Consider alternative suppliers before restrictions affect availability.
- Avoid relying on tariff arrangements remaining unchanged throughout a long-term contract.
International trade policy should now be treated as a continuing board-level risk rather than a temporary customs issue.
Risk Indicator: HIGH
Disclaimer
The information contained within these Market Alerts is provided for general market awareness and informational purposes only. It does not constitute financial, legal, investment, regulatory or insurance advice. Whilst every effort has been made to ensure accuracy at the time of publication using multiple reputable and independently verified sources, geopolitical events, legislation, regulation and market conditions may change rapidly. Readers should obtain appropriate professional advice before acting upon any information contained herein.
Invictus Risk Solutions LLP – Helping organisations stay ahead of emerging risks through informed insight and independent analysis.