U.S. and China Announce 90-Day Tariff Reductions

May 13, 2025 — Global Trade Update: The UK and India trade deal is making headlines as both nations work towards strengthening their economic ties.

The United States and China have announced a temporary 90-day reduction in tariffs, starting May 14, 2025, aimed at de-escalating trade tensions and boosting cross-border commerce. This major policy shift is expected to significantly affect shipping volumes, import/export flows, and logistics operations between the world’s two largest economies, especially for companies managing imports from China and exports to China.

Key Highlights of the U.S.-China Tariff Deal

Effective Dates: May 14 – August 12, 2025
U.S. Tariffs on Chinese Imports: Reduced from 145% to 30%
Chinese Tariffs on U.S. Exports: Lowered from 125% to 10%

“De Minimis” Threshold Adjusted

The U.S. has reduced its ‘de minimis’ tariff on small-value Chinese shipments from 120% to 54%, effective May 14. A $100 flat fee option remains in place for eligible parcels.

China’s Strategic Concessions

In a move to facilitate broader cooperation, China has lifted its ban on Boeing aircraft deliveries and committed to suspending fentanyl exports to the U.S. These steps aim to resolve key disputes and improve diplomatic relations.

Impact on Trade, Logistics & Business Opportunities

The temporary tariff relief is anticipated to stimulate bilateral trade growth—especially in high-demand sectors including:

Electronics & Semiconductors
Industrial Machinery
Consumer Goods
Agricultural Products
Oil, Gas & Renewable Energy

Businesses that rely on airfreight, ocean freight, and international shipping should be prepared to act quickly during this 90-day tariff window. With the reduction in tariffs on imports from China and exports to China, this is a key opportunity to reduce landed costs, improve delivery timelines, and expand market reach. To navigate these changes efficiently, many companies are turning to freight forwarding partners—such as Future Forwarding—for tailored logistics solutions, customs guidance, and optimized supply chain strategies.

What’s Next?

This 90-day window creates a critical period for businesses to optimize supply chains, negotiate new contracts, and capitalize on lowered trade barriers. While the agreement is temporary, its implications are far-reaching—and closely watched by global markets.

UK–US Partial Trade Agreement: What Importers and Exporters Need to Know

The United Kingdom and United States have reached a partial trade agreement aimed at easing tensions and boosting transatlantic trade, following the UK’s recent deal with India

Automotive Tariffs Reduced: Opportunity for UK Car Exporters

A dramatic reduction in US tariffs on UK manufactured vehicles, from 27.5% down to 10%.

However, the benefit is capped at 100,000 cars annually, closely matching the UK’s current export volume to the US

Steel and Aluminium Tariffs Eliminated: Boost for UK Metal Exporters

IThe US has agreed to eliminate its 25% tariffs on British steel and aluminium, a move that affects around £700 million in annual exports.

Agricultural Trade: Expanded Access With Limitations

The UK has secured market access for beef exports to the U.S., offering new opportunities for UK agricultural exporters. Meanwhile, UK importers will now be able to bring in up to £5 billion in U.S. agricultural products, including ethanol and beef, under duty-free quotas.

Key Benefits for Importers and Exporters in Other Sectors

The deal includes a range of provisions designed to streamline trade flows and reduce costs:

Preferential treatment for UK aerospace exports, including parts and components.
Better access for U.S. companies in UK government procurement contracts, opening public sector bidding.
Simplified customs procedures for U.S. goods entering the UK, reducing friction at borders and accelerating supply chain logistics.

What Tariffs Remain?

Despite the deal, many products are still subject to tariffs:

A 10% base tariff remains in place for most UK goods entering the U.S.
Tariffs on pharmaceuticals, digital services, and other key sectors have not yet been addressed.

What This Means for UK–US Trade

While not a full free trade agreement, this deal offers immediate benefits for businesses involved in transatlantic trade. Importers and exporters should review tariff codes, customs procedures, and quotas closely to ensure compliance and optimize savings.

Next steps: Further negotiations are expected to resolve outstanding issues and potentially move toward a broader trade deal in the future.

UK and India Sign Free Trade Agreement: Key Benefits for Logistics and Trade

After years of negotiations, the United Kingdom and India have signed a historic Free Trade Agreement (FTA), marking a significant step in the strengthening of trade relations between the two nations. This agreement is poised to reshape trade flows, boost key sectors, and streamline logistics and customs operations, benefiting businesses on both sides.

Key Provisions of the UK–India Free Trade Agreement

The UK–India FTA brings several important changes to the trade landscape between the two countries:

Tariff Reductions and Eliminations:
- 99% of Indian exports to the UK will now enter tariff-free, opening up significant opportunities for Indian manufacturers and producers.
- 90% of UK exports to India will see tariffs reduced or eliminated, with many goods benefiting from this change within the next decade.
- Indian automotive tariffs have been reduced from 100% to 10%, providing a major boost for the automotive and vehicle parts sectors.

Customs Benefits:
The agreement introduces significant improvements to customs processes that will benefit logistics providers and businesses involved in international trade:
- Simplified customs procedures will reduce paperwork and streamline processing times at both ends.
- Faster clearance of goods at ports, reducing delays and improving the overall efficiency of the supply chain.
- New customs frameworks designed to smooth out trade flows between the UK and India, making the movement of goods more predictable and reliable.

Sector-Specific Opportunities:
Several sectors are expected to benefit directly from the deal, including:
- Automotive: Reduced tariffs on vehicle exports and parts between the two countries.
- Food & Drink: Easier access for UK producers to Indian markets, particularly for alcohol, packaged goods, and specialty products.
- Pharmaceuticals and Life Sciences: Both countries will see improvements in access to critical products and services, boosting collaboration in the healthcare and pharmaceutical industries.
- Textiles and Apparel: This sector will see reduced barriers to trade, benefiting businesses that import/export garments and textiles.
- E-commerce and Retail: With easier trade, businesses in the e-commerce sector will have more opportunities for cross-border growth.
- Technology and Electronics: The agreement will encourage more trade in electronics and tech services, offering a more open market for innovations from both sides.

Customs Procedures and Logistics: A Game Changer

For logistics and customs professionals, the UK–India Free Trade Agreement will bring much-needed improvements to cross-border trade. Simplified customs processes are expected to reduce bottlenecks, which have traditionally delayed shipments at ports. With the introduction of faster clearance times and streamlined paperwork, logistics providers can expect a smoother flow of goods, reducing lead times and increasing reliability in supply chains.

The deal also introduces duty relief programs, such as duty draw-back schemes for UK exporters to India, further encouraging trade and making it more cost-effective. These changes are expected to lead to a more efficient and profitable environment for businesses operating in both markets.

A New Chapter for UK–India Trade Relations

The UK–India Free Trade Agreement represents a major shift in the trade relationship between the two countries. India’s growing economy and the UK’s post-Brexit trade strategy make this deal a critical component of both nations’ future trade plans. For logistics providers, businesses involved in manufacturing, and import/export companies, the agreement presents numerous opportunities to tap into growing markets and optimize supply chain operations.

As trade volumes between the UK and India are set to increase, businesses must remain agile, adapting to the new customs frameworks and enhanced trade opportunities. The deal highlights the UK’s renewed focus on forging global trade relationships and sets a promising tone for further agreements in the future.

Streamline Temporary Exports with an ATA Carnet – Let Future Forwarding Take Care of the Details

When it comes to temporarily exporting goods from the UK to the EU (or beyond), an ATA Carnet is the ultimate passport for your cargo. Whether you’re participating in an international trade show, exhibiting products at a European event, or transporting professional equipment for short-term use abroad, the ATA Carnet saves time, money, and stress at the border.

At Future Forwarding, we specialise in making this process seamless. With years of hands-on experience, our European department has supported countless UK businesses in navigating ATA Carnet requirements and delivering successful exhibitions and temporary exports across the continent.

What is an ATA Carnet?

An ATA Carnet (Admission Temporaire/Temporary Admission) is an international customs document that allows you to move goods temporarily across borders without paying duties, VAT, or needing to complete multiple customs declarations. Think of it as a passport for your products—valid in over 80 countries worldwide.

This document is particularly useful for:

Trade fairs and exhibitions
Product demonstrations
Commercial samples
Professional equipment (cameras, tools, instruments, etc.)

As long as no sale takes place and the goods return to the UK within the Carnet’s validity (typically 12 months), you can avoid the administrative and financial burdens normally associated with cross-border shipments.

Why Use an ATA Carnet?

Using an ATA Carnet provides several key advantages:

Cost Savings: Avoid paying import duties and taxes in foreign countries.
Time Efficiency: Speed through customs with less paperwork and fewer delays.
Multi-Country Travel: Use the same document to enter and leave multiple Carnet-accepting countries during the same trip.
Peace of Mind: Carnets reduce the risk of your goods being held up or incurring unexpected costs.

The cost of a Carnet depends on the value of the goods you’re exporting, but when you factor in the savings on duties, customs clearance time, and hassle, it’s often the most economical choice for short-term international logistics.

How Future Forward Can Help

At Future Forwarding, we don’t just issue Carnets—we support the entire journey. From the moment you start planning your export, our experienced team will guide you through the process, ensuring your goods are documented correctly and arrive on time.

Here’s how we support our clients:

Expert Documentation: We handle the ATA Carnet application, ensuring everything is accurate and compliant with customs regulations.
Dedicated Transport: Since goods traveling under a Carnet often need to be moved on a dedicated vehicle, we can arrange tailored transport solutions that align with your schedule and destination.
On-the-Ground Support: Our team stays in close contact throughout the process, ensuring smooth transitions at every border.

We’ve worked with companies across a wide range of industries, helping them showcase their products across Europe without delays, hidden fees, or paperwork headaches.

Get in Touch

If you’re planning to temporarily export goods for an event, trade show, or business project, let our European department take the pressure off. Our knowledge of Carnet logistics and European customs requirements means you can focus on your business—while we take care of the rest.

Navigating Changing Trade Regulations: What Importers Need to Know Now

As the global trade environment continues to shift, staying informed and compliant is more important than ever. At Future Forwarding, we are closely monitoring evolving U.S. Customs and Border Protection (CBP) regulations, new tariff implications, and enforcement trends to help our customers navigate the complexities of international shipping, and maintain compliance. Below are several key updates and best practices to help your business stay prepared and protected.

1. Upcoming Tariffs on Annex II Goods

While some goods were previously excluded from reciprocal tariffs under IEEPA (International Emergency Economic Powers Act)—including pharmaceuticals, lumber, and semiconductors—these items are under renewed scrutiny. New tariffs are being discussed, although no formal announcements have been made.

What this means for you:
Stay alert but don’t panic. These changes are developing quickly. We will provide clear, actionable guidance as soon as official information is released.

2. Customs Bond Sufficiency & Tariff Impacts

CBP has started issuing bond insufficiency notices as they account for increased duties under new tariff regimes. Importers may be advised to increase their bond amounts to avoid costly issues like bond saturation or stacking.

Our recommendation:
Proactively review your import projections over the next 12 months. Overestimating bond coverage may result in a higher premium but can help you avoid significant disruptions. Our team is here to assist with these evaluations.

3. Trade Agreement Claims & Documentation

As tariffs increase, programs like USMCA are expected to be claimed more frequently—especially for goods with normally duty-free classifications. However, claiming these benefits without adequate documentation can raise red flags with CBP.

What you should do:
Even if not required at the time of entry, obtain and retain certificates of origin and supporting documents. CBP may request proof of claims at any time, including for items subject to the new IEEPA-related tariffs or aluminum and steel derivatives.

4. Compliance Is Critical: AI & CBP Enforcement

CBP is leveraging artificial intelligence to identify patterns of non-compliance and possible tariff evasion. Brokers are expected to exercise “reasonable care” in supervising imports and ensuring accuracy in all documentation and declarations.

Your action items:
Ensure your records are thorough and accurate. Be ready to substantiate any certifications or claims. We’re committed to advising you responsibly and in writing when concerns arise.

5. Understanding “First Sale” Eligibility

There’s growing interest in using the “first sale” rule to reduce declared values and save on duties. However, this method requires strict qualification to be used appropriately.

Our advice:
If you’re exploring ways to optimize import costs, speak with a qualified trade advisor or attorney. We can connect you with trusted professionals to assess your transaction values and pricing strategies, such as isolating non-dutiable charges like certain commissions or engineering costs.

6. Importer Vetting & Risk Mitigation

CBP is increasingly focused on new Importers of Record (IORs), especially due to a rise in short-lived shell companies used to evade duties. This has led to tighter scrutiny in setting up new accounts.

How Future Forwarding protects you:
We vet all new importers thoroughly and recommend verifying business addresses and operational legitimacy before engagement.

7. The Role of Official Communication

We want to emphasize that social media posts are not law. No matter how widely circulated, guidance only becomes official through Executive Orders and, more importantly, CBP’s Cargo Systems Messaging Service (CSMS).

What this means for you:
Rely on Future Forwarding and CBP’s CSMS alerts—not online chatter—for accurate, enforceable guidance. We will always inform you of updates as soon as they are confirmed by official channels.

Partnering With You Through Change

We understand this is a challenging time for importers, and you may have questions as policies shift. Our team is dedicated to working closely with you, asking the right questions, and providing thoughtful recommendations to ensure continued compliance and peace of mind.

For more personalized support or if you’d like to discuss how these updates may affect your operations, please don’t hesitate to reach out. We’re here to help.

Liberation Day & Latest Tariff Changes: Latest developments regarding U.S. trade policies

3 April 2025

The recent announcement of new tariffs by President Trump is expected to impact global trade flows, supply chains, and shipping costs, particularly for goods crossing U.S. borders.

Key Tariff Updates

10% Baseline Tariff – Effective April 5, 2025, at 12:01 AM (ET).
Reciprocal Tariff Rates – Effective April 9, 2025, at 12:01 AM (ET).

These measures will affect trade between the United States and multiple countries. If your business is engaged in importing or exporting goods to or from the U.S., it is essential to evaluate how these changes may impact your shipments, costs, and logistics strategy.

These new tariffs are in addition to the already in place additional tariffs below:

International Emergency Economic Powers Act (IEEPA) – additional 20% duty on all Chinese manufactured goods
Steel and Aluminium 25% tariffs from ALL countries
Steel and Aluminium derivative duties
Vehicle & Vehicle Parts

Our team is committed to keeping you informed and minimizing disruptions to your operations. If you have any concerns or require assistance in planning for these tariff adjustments, please do not hesitate to reach out. We are here to provide guidance and support to help you navigate these changes effectively.

The Impact of Reciprocal Tariffs on Foreign-Trade Zones

As reciprocal tariffs are set to take effect on or around April 2, 2025, businesses relying on Foreign-Trade Zones (FTZs) must prepare for potential disruptions and compliance challenges. The application of these tariffs, targeted at trading partners imposing substantial trade barriers to U.S. goods, will have far-reaching implications for businesses involved in manufacturing, distribution, and logistics.

What Are Reciprocal Tariffs?

Reciprocal tariffs are a trade remedy mechanism intended to balance the playing field by imposing tariffs on imported goods from countries that have levied significant trade barriers against U.S. goods. Starting on April 2, 2025, certain trading partners will face blanket tariff rates on all imported goods originating from their countries, potentially impacting the cost structures and operations of U.S.-based businesses, including those operating within FTZs.

The Uncertainty Surrounding FTZ Admission Requirements

One of the primary questions surrounding the introduction of reciprocal tariffs is whether merchandise originating from countries subject to the new tariffs will be required to enter FTZs under “Privileged Foreign” (PF) status. This status restricts certain merchandise, which could result in changes to how businesses manage inventory and imported goods.

The Potential Effects on Manufacturers

If FTZ merchandise from reciprocal tariff countries is required to be admitted under PF status, the effective date of the tariffs will lock in the tariff rates at the time of admission. For manufacturers who rely on parts, components, or raw materials from these countries, the elimination of benefits like the inverted Most-Favored-Nation (MFN) duty rate could result in increased costs. This means that manufacturers might face higher duties when withdrawing goods from the FTZ for U.S. consumption, including any additional trade remedy tariffs in place.

On the other hand, if PF status admission is not required, manufacturers could face two distinct risks:

Risk of Overpayment: Goods made from parts or components that don’t enter under PF status might end up being subject to reciprocal tariffs on the total value of the finished goods when they are withdrawn.
Risk of Inconsistent Application: If the PF status rule is not applied, manufacturers may inadvertently avoid tariffs on certain materials, creating compliance risks and complications when reporting and calculating duties.

At this stage, it’s unclear which route will be taken, and businesses must stay alert to official guidance as new policies unfold. This uncertainty underscores the need for proactive monitoring of developments and a readiness to adapt operational processes quickly.

Managing On-Hand FTZ Inventory

Another critical area of concern for FTZ operators and businesses utilizing FTZ services is how on-hand inventory will be affected by the reciprocal tariffs. Specifically, businesses will need to determine whether goods admitted before the tariff’s effective date can still avoid the new tariff rates when they are withdrawn from the FTZ after April 2, 2025.

Just as with other trade remedy actions (e.g., Section 301 or Section 232 tariffs), past inventory might be grandfathered in under the previous tariff structures. However, there is still a possibility that the new tariffs will apply retroactively, similar to the treatment of steel under Section 232 tariffs. This potential change could require businesses to reassess their inventory strategy and consider actions like filing Zone Status Change admissions or paying duties on inventory before the tariff implementation date.

The Role of FTZ Operators

FTZ operators, especially third-party logistics (3PL) providers, will have a significant role to play in helping businesses navigate these changes. While the ultimate responsibility for tariff compliance typically rests with the business using the FTZ, operators should be ready to assist with tasks such as filing customs entries, helping with inventory adjustments, and ensuring that the correct tariff classifications are applied.

3PL providers may also need to review their contracts with FTZ customers to clarify roles and responsibilities when it comes to compliance with new tariffs. Ensuring that customers are aware of their obligations and deadlines will be crucial to maintaining smooth operations in the face of regulatory shifts.

Increased CBP/ICE Enforcement and Compliance

In addition to the changes related to tariffs, businesses should also be aware of increased enforcement activities by U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE). Recent inspections at bonded warehouses have led to heightened scrutiny, and FTZ operators are being reminded of their responsibilities to ensure employment eligibility verification for all personnel working within CBP-supervised facilities. Ensuring compliance with these regulations will be critical to avoiding potential penalties.

Preparing for the Future

In light of the uncertainty surrounding the implementation of reciprocal tariffs, FTZ operators and businesses should:

Monitor Regulatory Changes: Stay informed on updates regarding the application of reciprocal tariffs to understand whether PF status will be required for merchandise from impacted countries.
Review FTZ Inventory: Consider filing necessary Zone Status Change admissions to align with potential new tariff classifications before the effective date.
Prepare for Compliance: Ensure that all required customs transactions are in place to mitigate potential disruptions to business operations.
Collaborate with FTZ Operators: Engage FTZ operators early to clarify roles and responsibilities under the new tariff structures.

By taking these proactive steps, businesses can minimize the impact of reciprocal tariffs and continue to operate efficiently within FTZs, maintaining compliance and avoiding costly errors. Have questions? Reach out to your Future Forwarding representative for further guidance.

Heathrow Airport Closure Impact on Freight Movements

21 March 2025

Note Heathrow Airport is closed today, Friday, March 21, 2025, due to a fire at an electrical substation in Hayes, West London, which has caused a major power outage. Emergency crews are working to resolve the situation, but there is no confirmed timeline for power restoration. This disruption is significantly impacting air freight movements, leading to delays for both imports and exports.

Our team is actively reviewing all affected shipments and exploring alternative solutions where possible. If your consignments are impacted, we will reach out to you directly with updates and contingency plans.

Please do not hesitate to contact us if you have any urgent concerns. We appreciate your patience and will continue to provide updates as the situation develops. +44 161 436 8181

Notice: Tariff Surcharge

As you may know, recently announced tariffs on various goods imported into the United States from China and Canada, and all imports of iron and steel, have now gone into effect, and more rounds of tariffs are forthcoming this week and possibly again in April. US Customs & Border Protection (CBP) manages these additional tariffs by assigning an additional HTS for each 301, 232 or IEEPA Tariff, plus an additional HTS for any applicable exclusions or quotas. Some items often require up to 5 unique HTS.

Effective immediately, the following surcharge will be effective for all imports to the United States cleared by Future Forwarding Company.

Tariff Surcharge: $3.00 per HTS after 5 HTS free per entry.

Note that this surcharge is in addition to existing entry fees, ISF, and any other handling fees.

As always, we will continue to evaluate our position as this dynamic situation continues to evolve and keep you informed of any changes. We are also committed to continuing to explore strategies to minimize the impact for your organization.

We thank you for choosing to do business with Future Forwarding Company and we value your partnership and continued support.

Unlocking New Trade Potential: What the New US-UK Deal Means for Global Supply Chains