Frequently asked questions about recently announced US tariffs

What has been announced?

• President Trump signed an Executive Order declaring a national emergency due to national and economic security concerns arising from US goods trade deficits. He called this America's 'Declaration of Economic Independence'. By declaring a national emergency, he is now able to impose tariffs - a power normally reserved for Congress.
• A flat 10% tariff rate was applied to all UK goods entering the US from 5 April.
• The previously announced 25% tariff on steel and aluminium is still in effect, which came into force on 12 March. At the moment, steel and aluminium imports will pay a flat 25% rate and will not be subject to the additional 10% baseline. 

• UK automakers will also face a flat 25% tariff. 
• There will be some exceptions for copper, pharmaceuticals, semiconductors, lumber, energy and critical minerals not available in the US.
• On 9 April, Trump announced a “pause” in the reciprocal tariffs. This means that all countries now have a 10% tariff on goods, with the exception of China, which will have a 125% tariff. The sectoral tariffs on steel, aluminium and automobiles remain.

How might recruiters be impacted?

• Service-based firms, such as recruiters, are not currently affected by these tariffs, which are only being levied on goods.
• However, we expect knock-on effects as the economy in the UK and globally adjusts to a more fragmented and unpredictable trade landscape.
• This is a fast-moving situation, and further changes are possible in the days and weeks ahead.

What is the UK government doing?

• The UK government is continuing negotiations toward an economic prosperity agreement with the US. It is the government's hope that this deal will result in the reversal of the newly announced 10% UK tariffs. 
• The Prime Minister has announced new measures to help the automobile industry and the life sciences sector as first steps to “secure jobs, drive investment and ensure British businesses thrive on the global stage.”

What are the REC doing?

• We have attended early calls with ministers and officials working on trade policy and will continue to represent the voice of the talent, recruitment and staffing industry at the highest level.
• We are taking soundings from our international counterparts to ensure that we understand and can communicate the role of UK recruitment as a leading professional service on the broad international stage.
• In addition, we are talking to US stakeholders to ensure a direct communication channel on any potential knock-ons for the UK recruitment sector.

If you have further questions or concerns, get in touch with your account manager or with campaigns@rec.uk.com. We will be keeping this page updated as events develop.