July Tariffs - Are you ready?

Here are the Highlights:

• Trumps tariffs are set to go back into effect on July 9th
• The US has reached a deal with the UK on Cars and Car Parts, Aerospace, Aluminum & Steel,
• The US and China’s Trade deal is done
• Industries that may see the biggest impact are….

The world of international trade is in for another shake-up as President Donald Trump's tariffs are set to return on July 9th, 2025. After a period of relative stability, these tariffs mark a significant moment in U.S. trade policy, signaling a new chapter of economic protectionism. As part of this shift, the United States has struck several major deals with global trade partners, including the UK, and concluded its trade negotiations with China. But what exactly does this mean for U.S. businesses, industries, and consumers? And which sectors are poised to feel the most significant impacts?

Trump's Tariffs Set to Return on July 9th

On July 9th, 2025, the tariffs that were previously suspended will be reinstated. This move is expected to have widespread consequences, both domestically and internationally. These tariffs were first introduced by the Trump administration in 2018, aiming to reduce the U.S. trade deficit and protect American industries from what the administration called "unfair" competition from countries like China. Though some tariffs were rolled back or temporarily suspended during the Biden administration, the decision to bring them back signals a shift back to protectionist trade policies.

The economic implications of these tariffs are multifaceted. For one, U.S. consumers are likely to feel the strain of higher prices on imported goods. Industries that rely heavily on global supply chains, such as electronics, automotive, and steel, may face increased production costs, which could ultimately be passed on to consumers. Meanwhile, foreign manufacturers will need to adjust their pricing structures to compensate for these new taxes on their goods.

The US-UK Trade Deal: A Step Toward Global Collaboration

Amidst these growing protectionist policies, the U.S. has reached a crucial agreement with the United Kingdom. This deal, which focuses on several industries, is seen as a key step in securing transatlantic trade ties. The agreement includes provisions on cars and car parts, aerospace, and aluminum and steel. These industries, which are vital to both the U.S. and UK economies, are poised to benefit from a reduction in tariffs and a clearer path for business operations.

• Automotive Industry: The U.S. and the UK have agreed to a more favorable arrangement for car parts and automobiles, which is expected to ease the burden on manufacturers and suppliers in both countries. The deal includes tariff reductions on certain automotive components, facilitating smoother trade in the sector.
• Aerospace: The aerospace sector, a critical component of both nations’ economies, will also see benefits. This deal allows for continued collaboration between U.S. and UK aerospace companies, with lessening of tariffs on parts and components used in aircraft production. This could foster further innovation and strengthen the global competitiveness of both nations in the aerospace market.
• Aluminum & Steel: The U.S. and UK have long been key trading partners in the production and export of aluminum and steel. Under the terms of the agreement, both countries have agreed to find a more balanced approach to managing these vital industries while reducing tariff-related barriers.

This trade agreement highlights the ongoing importance of strategic trade relationships, even in the face of broader tariff policies. As the U.S. and UK collaborate, it’s clear that both countries are aiming to reduce the economic friction caused by high tariffs, potentially providing a model for future agreements with other partners.

The US-China Trade Deal: Finalizing the Trade War

In another crucial development, the U.S. and China have concluded their long-standing trade dispute. After years of back-and-forth negotiations, both nations have reached a trade deal that aims to reduce tensions and pave the way for more predictable trade between the two largest economies in the world. This agreement, which involves tariff reductions and market access, marks a turning point in the U.S.-China trade relationship.

The deal will likely impact industries that rely heavily on imports from China. Key sectors, such as technology, manufacturing, and consumer electronics, may see a shift in pricing and availability of components as tariffs are gradually reduced. Companies that manufacture products like smartphones, laptops, and home appliances may also experience some relief, although it remains to be seen how quickly the tariff reductions will translate into lower costs for consumers.

Key Industries to Watch

With the return of Trump's tariffs and the global trade agreements in play, certain industries are likely to be impacted more than others. Here are a few sectors to keep an eye on:

• Automotive Industry: As tariffs are reinstated, the cost of imported cars and parts is likely to rise. This could impact both domestic manufacturers and consumers. However, the U.S.-UK agreement on cars and car parts may offset some of these impacts for companies in the U.S. and UK, providing a more stable environment for production.
• Technology: Tariffs on electronics, semiconductor components, and other tech-related goods could disrupt the supply chains of companies that rely on Chinese manufacturing. While the U.S.-China trade deal may ease some of this burden, the overall global tech market may still feel the pressure.
• Steel and Aluminum: The reinstatement of tariffs on steel and aluminum imports will affect industries that rely on these metals, such as construction, manufacturing, and infrastructure. U.S. companies in these sectors will face higher raw material costs, which could trickle down to consumers in the form of higher prices for a wide range of products.
• Agriculture: U.S. farmers could once again face retaliatory tariffs on exports to key markets, particularly China. However, with the trade deal in place, some of these challenges may be mitigated, though it’s unclear how quickly markets will stabilize.
• Consumer Goods: As import costs rise, consumer goods — from clothing to electronics — are likely to see price increases. Retailers that rely on foreign-produced goods will need to navigate these new cost structures while maintaining competitiveness in the market.

Conclusion

The return of Trump's tariffs and the ongoing trade deals with the UK and China mark a significant shift in U.S. trade policy. While some industries will benefit from newly negotiated agreements, others may find themselves navigating higher costs and increased economic uncertainty. For businesses, understanding the nuances of these trade agreements and preparing for the impacts of tariffs will be critical in the months to come. As the global trade landscape continues to evolve, companies and consumers alike will need to stay vigilant in adapting to new market conditions.