Starting today, over 90 countries across the world will begin to feel the effects of the latest block of tariffs on goods entering the US, as new rates come into force
The latest tariffs, which were originally announced in April, see countries in South East Asia hit the hardest with India facing a 50% rate on goods sold to the US, and Laos and Myanmar facing rates of 40%.
Other countries, such as the UK, South Korea, and Japan, have negotiated since the original announcement and have reduced tariff rates on most goods. The UK faces import tariffs of 10%, the flat rate facing many countries.
The European Union has also struck a deal with Washington, in which Brussels has accepted a 15% tariff on goods from the continent.
The tariffs, which US President Donald Trump describes as ‘reciprocal,’ are designed to increase the number of goods manufactured in the US, and decrease the number of goods brought in from abroad.
The President announced that India would face 50% tariffs on imported goods to the US from the 27th August citing the purchasing of Russian oil as the cause, this is one of the highest rates imposed.
Last month, the UK announced a free-trade agreement with India which is designed to make trading with India quicker, cheaper, and easier thanks to improved customs processes and by promoting digital systems. This, coupled with the tariffs imposed by the US, will undoubtedly affect the trade of cosmetics between the UK and India.
Ahead of today’s deadline for negotiations, the President also threatened a 100% tariff on foreign-made computer chips, to push tech firms to invest more in the US.
In terms of beauty specifically, it is not yet clear how it will affect business, beyond increased costs of importing. It is also not clear how goods could be affected by rules of origin and substantial transformation.
The British Beauty Council is working closely with the Department for Business and Trade to establish the exact parameters of the tariffs, and how beauty could be affected.
To stay up to date with the latest developments, and find out if your business is impacted, visit this guide from the Department for Business and Trade.
If you would like to share information on how the tariffs are set to affect your business now or in the future, email joinme@britishbeautycouncil.com.
