Background 

The United States (US) Government has announced new tariffs on imported physical goods which came into effect on 5 April 2025. 

The purpose of these tariffs is to reportedly: 

• Reduce the US trade deficit 

• Encourage companies to move manufacturing to the US  

• Rectify “unfair” trade practices 

Most UK goods are currently subject to the global baseline tariff of 10% on top of existing duties and fees.  

Higher specific reciprocal tariffs were introduced for other jurisdictions – the “worst offenders” - with which the US says it has the largest trade deficits. For example, goods originating from the EU are subject to a higher tariff rate of 15%.  

Exemption for physical music 

US Customs and Border Protection published guidance which specifies that 'informational material' which includes physical music products such as phonographs and CDs are exempt from tariffs, with a secondary tariff code applied.  

Exception 9903.01.31 reads as follows: 

Articles that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. 

However, items such as merchandise and electronic equipment used in the recording/production of sound recordings are not exempt and BPI member businesses have reported an inconsistent application of this exemption to date. 

Changes to US import rules for low-value shipments  

On 29 August 2025, the US Government removed the $800 (approximately £590) ‘de minimis’ threshold for commercial shipments of low-value imports. There is further information about these changes from the UK Government here. 

US Customs and Border Protection have confirmed that physical music products are exempt from these latest changes because they remain classified as ‘information materials’.  

BPI is aware however that some members are still experiencing difficulties with shipping companies following these latest changes to import rules. This is feedback we are giving to the UK Government. 

UK Government response 

The UK Government has taken an approach to not introduce any retaliatory tariffs or measures. On 8 May 2025 the US-UK Economic Prosperity Deal (EPD) was announced. The full extent of how this deal could impact the music industry is yet to be determined, but what we know so far is:  

  • The EPD is not a Free Trade Agreement in the traditional sense and is not a legally binding agreement meaning either party can cancel it with notice to the other. 
  • It is a limited agreement on specific sectors and areas - notably cars, steel, aluminium and agriculture. Wider areas will be discussed over the longer term for possible inclusion. 
  • The UK and US have outlined that they will look to deepen their partnership on new technologies to shape the innovations of the next generation together. We do not yet have further information on this. 
  • Both countries confirmed that they also intend to discuss high-standard commitments related to intellectual property rights protection and enforcement, labour practices and environmental policies and practices. 
  • The baseline tariff of 10% remains in place on most UK goods that do not qualify for exemptions. The Prime Minister Keir Starmer said that he would like to go further in relation to tariffs and the UK Government continues to work on reducing barriers to trade with the US “across the board”. 
  • The deal includes plans that will bring the UK into economic-security alignment with the US. 

BPI is continuing to monitor these discussions closely for any concessions or discussions around intellectual property or technology. 

Next steps 

BPI is continuing to liaise with the UK Government regularly on trade with the US including sharing feedback received from BPI members. We encourage any affected members to stay in touch with us about your experiences via [email protected]. 

We will continue to keep our members informed about any further developments.