Frequently asked questions about recently announced US tariffs

Please Note: A U.S. federal court has ruled that former President Trump exceeded his authority by using emergency powers to impose broad tariffs. The case, brought by U.S. businesses and states, gives the White House 10 days to reverse the levies. The Trump administration plans to appeal, arguing it’s not for “unelected judges” to decide on national emergencies. Some tariffs imposed under other laws remain in place. The ruling has created significant uncertainty around tariffs, and we await further updates in the coming days. Ongoing trade talks with dozens of countries are also now in flux, with businesses and experts are currently attempting to assess the impact. We will continue to update REC members as we learn more.

What was 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, with sectoral 25% tariffs on steel, aluminium and automobiles.

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 are the trade deals the UK government has announced?

• On the 8^th of May, the US and UK announced elements of a new trade deal. This includes cuts to the sectoral tariff from 25% to 10% (capped to 100,000 cars a year), a reduction of steel and aluminium tariffs to zero and reciprocal market access to beef.
• This is intended to be the first element of a wider trade agreement, including a partnership on tech and a deal on pharmaceuticals.
• The UK government is also pursuing new markets. On the 6^th of May, the government announced that it has agreed a trade deal with India. This includes a cut of Indian tariffs across 90% of British product lines, including cars, cosmetics, food and drink, medical devices, aeroplane parts and electrical machinery.
• On the 19^th of May, the government announced a new agreement with the EU. This included significant regulatory alignment on food and energy and a new pact on defence and security.
• The EU and the UK will “work towards” a scheme which facilitates youth labour mobility. They have also announced a dialogue on implementing the previously agreed provisions on short-term business visas and EU-UK mobility for transfers within the same corporation and independent contractors.

What is the UK government doing to protect businesses domestically?

• 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.