The US Government 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 

UK goods will be subject to a baseline tariff of 10% on top of existing duties and fees (with higher rates of 25% for cars, steel, aluminium and derivative products).

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, a 20% tariff was announced for the EU, while some countries in South East Asia were hit with tariffs of almost 50%.

As of 10 April, a 90-day pause has been announced by the US Government for higher tariff rates for those countries that have not retaliated, with the exception of China, which remains heavily tariffed. This means the previously announced 20% tariff applied to the EU (for example) is on pause for now, but the baseline 10% tariff will still apply.

EXEMPTION FOR CDS AND VINYL:

BPI has been working closely with international partners and the UK Government to seek clarity on the status of physical music products.

We now have seen US Customs and Border guidance which specifies that 'informational material' (which includes phonographs and CDs) is exempt, 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.

We are awaiting further clarification regarding CDs and vinyl if they originate from China. However, it is clear from the existing information that items such as merchandise and electronic equipment used in the recording/production of sound recordings are not exempt.

UK GOVERNMENT RESPONSE

The UK Government has taken an approach so far to not introduce any retaliatory tariffs and therefore still remains subject to the baseline tariff.

We have been informed that the Department for Business and Trade has assembled a large team to focus on this issue. BPI remains in regular communication with officials in relevant Government Departments and continues to attend briefing meetings as they are scheduled for any new developments.

The priority continues to be on securing a UK-US trade deal, which could as a part of its terms see the removal of all tariffs imposed on the UK. There is no indication if or when this deal might be reached. BPI is closely watching this for any concessions or discussions around Intellectual Property or technology.

UK businesses can now share their views on potential UK measures responding to the new US tariffs via the UK Government’s request for input before 11:59 on 1 May 2025, here.

NEXT STEPS

BPI will continue to share relevant information with Members as it becomes available.  

The UK Government is keen to understand business implications and hear real-world examples, so please do share any insights either directly with BPI or via the Government’s ‘Request for Input’ as noted above.

Please get in touch with BPI via [email protected] if you have any questions.