Trying to keep up with the US tariffs has become its own specialist field of study.
From the continually changing tariff rates, earning the policy the scathing TACO (Trump Always Chickens Out) acronym, to the intervention of the US Supreme Court, it is almost impossible to accurately determine the impact of the tariffs and how they will shape the global economy.
We return once again to the Sisyphean task of trying to unpack the latest in the Trump tariff fiasco.
What is the current situation with the tariffs?
After a New York court ruled the Trump tariffs to be illegal, there seemed like a light at the end of the tunnel for global businesses.
Perhaps less so for the UK, which had endeavoured to negotiate a trade deal to keep the worst of the tariffs at bay.
It is worth remembering that even if the UK gets a better deal, the impact on the global economy may still cause UK businesses to struggle.
However, the Trump administration appealed the court ruling, leaving the legality of the tariffs undecided.
It should also be noted that only the reciprocal tariffs were ruled illegal and that many of the other tariffs are being permitted to continue unchallenged.
As such, UK cars are still subject to 27.5 per cent US import duties while steel and aluminium face 25 per cent tariffs.
Will the UK-US trade deal fix anything?
It is too early to be able to gauge the impact of the UK-US trade deal.
The tariffs were implemented with immediate effect, while the trade deal is yet to be implemented.
The trade deal stands to lessen the impact on UK businesses who deal with America, but it cannot contain the global fallout of the Trump tariffs.
The trade deal also cannot restore any confidence in the global economy as the foundations of trust take years to develop and days to ruin.
In short, the economic uncertainty that has afflicted many UK businesses is unlikely to be mitigated anytime soon.
The strategies for dealing with the tariffs remain the same as they were when the tariffs were first announced.
Companies should manage their supply chains effectively and consider using different importers or exporters if the tariffs threaten to make some parts or services inaccessible or expensive.
Businesses should be open and honest in communication with each other, as this is a global issue, so working together is the best way to mitigate the worst impacts of the Trump tariffs.
Seeking professional advice is always the best approach for dealing with the mass economic uncertainty that threatens the foundations of regular business transactions.
For help navigating the Trump tariffs, speak to our team today.
