A women working in American factory

The Impact of Trump 2025 Tariffs on American Manufacturing

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In April 2025, the United States took a bold step in reshaping its global trade strategy by implementing broad tariffs under a renewed protectionist approach. President Donald Trump announced these policies in Executive Order 14257. 

The administration positioned this move as part of a larger effort to “restore American greatness” in manufacturing, revive domestic industries, and address decades of trade imbalances.

The new tariffs come at a time when global supply chains are still recovering from the post-COVID era and geopolitical tensions are rising, especially with countries like China. While the administration promotes the tariffs as a catalyst for economic revival, experts remain divided. This article explores the US tariffs of 2025, their scope, and their overall impact, both positive and negative, on the American manufacturing sector.

Overview of the 2025 US Tariffs

The 2025 tariff policy, driven by Executive Order 14257, imposes a baseline 10% import tariff across the board, with additional duties on countries deemed to engage in “unfair” trade practices, including China, Vietnam, and some EU nations. Specific industries targeted include steel and aluminium (25%), automotive components (20%), textiles (15%), and consumer electronics (up to 35%).

This policy is not merely symbolic—it represents one of the most aggressive trade interventions in recent US history. According to the Tax Foundation, President Trump’s tariffs are projected to impact approximately $1.4 trillion worth of imports, a significant increase from the $380 billion affected during his first term.

Shipping boxes with label showing 'Made in United States'

Goals of the Tariffs

The tariffs were introduced with the following goals by the US government:

  • Rebalancing the trade deficit: In 2024, the US reported a $918 goods billion trade deficit, with China accounting for $294 billion, roughly 32% of that gap. The new tariffs aim to discourage excessive reliance on foreign goods and promote local alternatives.
  • Revitalising American manufacturing: By making imported goods more expensive, US companies may find it economically viable to produce domestically.
  • Enhancing national security: Critical industries like semiconductors and rare earth elements are now deemed strategic, and reducing dependency on foreign supply is part of a broader security doctrine.
  • Increasing federal revenue: The tariffs are projected to generate over $120 billion annually in additional federal income, according to the US Trade Representative (USTR).

Benefits of the Tariffs for American Manufacturers

The tariffs are intended to offer the following benefits to the American industries and manufacturers: 

  • Protection Against Unfair Competition

The tariffs are primarily aimed at levelling the playing field by protecting domestic manufacturers from artificially cheap imports subsidized by foreign governments. Industries such as steel, furniture, and electronics have long struggled against low-cost competition, especially from China.

Domestic firms now have the chance to regain market share and grow without being undercut on price. Due to more favourable conditions, sectors like aerospace, defence manufacturing, and heavy machinery are already reporting growth.

Interestingly, for companies finding it increasingly difficult to sustain operations in the US due to costs, the UK is emerging as a strategic alternative for manufacturing relocation. With lower trade barriers, access to EU markets through bilateral agreements, and an English-speaking workforce, the UK offers operational advantages for American and global companies looking for stable production bases outside the US.

  • Safeguarding Jobs 

Tariffs could help protect domestic manufacturers from cheaper imports, giving local industries a competitive advantage. US steel and aluminium producers, for example, will undoubtedly be among the winners. They will sell more products at higher prices, bringing in more revenue and profit.

A traffic sign showing US tariffs ahead

  • Encouragement of Domestic Investment

Higher tariffs on imports have encouraged US firms to look inward and reinvest in local production. Large players like Intel and General Motors (GM) have announced factory expansions, while hundreds of SMEs have signalled plans to upgrade or expand their facilities.

However, for many businesses, especially startups and mid-sized firms, domestic investment still presents challenges related to labour costs and regulatory hurdles. For such companies, relocating or expanding to the UK, where favourable trade policies and skilled labour are available, can be a viable strategy.

Kirmell offers expert guidance for businesses exploring such options in the UK by supporting them in establishing reliable supply chains and industry partnerships for a smoother transition.

Adverse Effects of the Tariffs on American Manufacturing

The tariffs will have some negative effects on American manufacturing, particularly those industries that heavily rely on foreign goods and materials, such as:

  • Increased Production Costs

The downside of tariffs is most clearly felt in industries dependent on imported materials. Steel, aluminium, electronics components, and industrial plastics are now significantly more expensive due to the new duties.

Companies that cannot find affordable local alternatives face rising operational costs, often resulting in price increases for end consumers or squeezed margins. For instance, a study by the Center for Automotive Research indicates that the 25% tariffs on imported auto parts are projected to increase manufacturing costs for major U.S. automakers by nearly $5,000 per vehicle. 

This substantial cost increase underscores the significant financial impact these tariffs are having on the automotive industry

In these scenarios, relocating part of the production to countries with lower tariffs and more accessible raw materials is a cost-effective alternative. Again, the UK presents itself as a business-friendly hub with solid infrastructure and a transparent regulatory system. 

  • Supply Chain Disruptions

Manufacturing today depends on global supply networks. Tariffs interrupt this flow, creating delays, compliance issues, and added costs. Some US firms are already experiencing project slowdowns due to component shortages or price volatility.

For businesses looking to regain control of their supply chain while avoiding excessive costs, the UK provides a central location for Europe-bound manufacturing, distribution, and warehousing. Companies like Kirmell offer industry-specific guidance for firms navigating this shift, helping them reduce risks and find new supply chain partners for their manufactured goods.

  • Retaliatory Measures

Canada, Mexico, China, and the EU have also imposed their own tariffs on US exports, further reducing the competitiveness of US-manufactured goods abroad. Read more about this in our blog on China tariffs on the US. Although the US paused its tariffs on the EU, Canada, and many other nations that were yet to implement their retaliatory tariffs for 90 days but the tariffs on China still remain in place. Still, however, these tariffs are just paused, and chances are they will be implemented in the future after 90 days. 

Further, manufacturers that rely on exports, such as agricultural equipment producers, may face reduced demand if foreign markets close off or impose penalties.

shipping containers with tariffs straps attached

How Can Kirmell Help US Manufacturers Switch to the UK?

Kirmell is a UK-based precision manufacturing and engineering company that supports global businesses with high-quality component production and supply chain reliability. Specialising in CNC machining, laser cutting, presswork, and fabrication, Kirmell provides critical manufacturing services for heavy industrial applications—helping companies maintain efficient operations in a stable, tariff-friendly environment.

What Kirmell Offers:

  • Component Manufacturing: ISO 9001:2015 certified production of precision parts using advanced machining, cutting, and metalworking technologies.
  • Engineering Support & Prototyping: Custom tooling and development assistance to support new product introductions and modifications.
  • Supply Chain Partnership: Reliable manufacturing support for companies sourcing components or assemblies within the UK due to high tariffs elsewhere.
  • Export Capabilities: Kirmell supplies quality presswork and components to international clients across Europe, North America, and beyond.
  • Industry Experience – Serving heavy industrial sectors, including automotive, construction, infrastructure, and engineering.

Whether you’re facing rising tariff pressures or seeking a stable, long-term supply partner in the UK, Kirmell provides the industrial capabilities and expertise to support your operations with confidence. Contact us now for a free consultation right away. 

Ready to Take the Next Step?

Visit Kirmell and book a free consultation. Whether you’re a startup, a mid-sized manufacturer, or a multinational, Kirmell will help you turn trade challenges into strategic growth opportunities.

Conclusion

The 2025 US tariffs have redefined the landscape of American manufacturing. While they offer compelling benefits—like encouraging domestic investment, protecting local industries, and promoting job creation—they also carry significant risks. Higher production costs, global retaliation, and inflationary pressures could undermine the very gains they seek to deliver.

For businesses feeling squeezed by rising expenses or uncertain supply chains, exploring manufacturing alternatives such as the UK could offer much-needed relief and opportunity. And with expert partners like Kirmell on hand to guide that transition, companies don’t need to go it alone.

The effectiveness of US tariff policy will ultimately depend on strategic planning, adaptability, and the right domestic and international partnerships.

FAQs

 

How do the 2025 US tariffs affect American manufacturers?

The 2025 tariffs have increased the cost of imported raw materials and components, putting pressure on American manufacturers. While some benefit from reduced foreign competition, many are facing higher production expenses and tighter profit margins.

 

What is the impact of import tariffs on domestic production?

Import tariffs can encourage domestic production by making imported goods more expensive. However, they also raise input costs for manufacturers, leading to increased production costs and supply chain disruptions in many sectors.

 

What are the effects of the 2025 tariffs on US manufacturing jobs?

The impact on jobs is mixed. Some industries, like steel and aluminum, have seen job growth due to protection from imports. In contrast, manufacturers reliant on global supply chains are facing higher costs, which can lead to layoffs or slowed hiring.

 

Which industries are most affected by the 2025 US tariffs?

Industries heavily reliant on imported materials, such as automotive, electronics, aerospace, and machinery, are among the most affected due to rising input costs and disrupted supply chains.

 

Why should US companies consider the UK for manufacturing?

With stable trade conditions, skilled labour, and robust infrastructure, the UK is an ideal alternative for companies facing tariff-related challenges. Kirmell supports this shift by offering precision laser cutting, welding, and custom fabrication services, delivering reliable, UK-based manufacturing solutions for global partners looking to reduce risk and improve supply chain efficiency.

 

 

 

us and european union flags togther

How 2025 US Tariffs Are Reshaping EU Manufacturing

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In 2025, the United States made a bold move by introducing new tariffs on goods imported from several countries, including the European Union (EU). These tariffs, introduced by the Trump administration, were part of a broader push to bring more manufacturing back to the US and reduce trade imbalances. However, the ripple effects of this decision have been deeply felt across Europe, especially within key manufacturing sectors like automotive, steel, luxury goods, and pharmaceuticals.

Let’s break down how these tariffs are reshaping the EU’s manufacturing landscape—and how businesses are adapting, including those turning to expert solutions like Kirmell for support.

Understanding the 2025 US Tariffs

The new US tariffs on the EU that took effect in April 2025 include a baseline 10% tariff on almost all imported goods, with the EU facing a heightened rate of 20%. On top of that, specific sectors such as cars, steel, and aluminium now face a massive 25% tariff.

Later, in response to market volatility and international concerns, the US announced a 90-day pause on additional tariffs beyond the baseline 10% rate for most countries, including the EU, effective April 9, 2025. This pause does not apply to China, which faces increased tariffs.​ Read more about the China-US tariff war in our separate blog. 

While the US government says this move will strengthen domestic production and protect American jobs, it’s proving to be a major challenge for EU businesses. Many companies are now rethinking where they make their products, how they manage their supply chains, and where they sell their goods.

Containers with US and European Union flags colliiding

Industries Hit Hard By US Tariffs 

Let’s discuss in detail what types of industries will be hit most by these tariffs:

Automotive Sector

The automotive sector in Europe has been hit especially hard. Germany, France, and Italy are home to some of the world’s most well-known car brands, including BMW, Mercedes-Benz, Volkswagen, Peugeot, and Fiat. Many of these companies export a large portion of their vehicles to the US

With a 25% tariff now placed on cars and car parts, selling in the US has become far more expensive. Car prices are going up for American buyers, which could reduce demand. To deal with this, companies are exploring several options:

  • Shifting production to the US so they can avoid the tariffs.
  • Cutting costs in other areas, such as labour or supply chain logistics.
  • Looking for new markets in Asia or South America.

For smaller automotive parts manufacturers and suppliers in the EU, this change is even tougher, as they may not have the flexibility or resources to move operations or adjust supply lines quickly.

Steel and Aluminium

The steel and aluminium sectors are also under pressure. The US has announced 25% tariffs on all steel and aluminium imports from the EU countries, which can cause $5 billion in lost sales as well as put thousands of jobs at risk.

Steel and aluminium are vital for a range of industries—from construction to machinery and transportation. When tariffs raise the price of these materials, it affects the entire supply chain. Many European manufacturers are now:

  • Trying to redirect exports to other global markets.
  • Investing in automation to keep production cost-effective.
  • Considering production partnerships within tariff-free zones.

This is where companies like Kirmell become especially valuable. Kirmell, a UK-based manufacturing service provider, offers high-quality presswork, fabrication, CNC machining, and laser cutting services. Their precision engineering and decades of experience can help EU businesses maintain efficiency and quality while navigating shifting market demands.

Because the UK is no longer part of the EU, it offers unique opportunities for companies looking to stay close to European markets while benefiting from separate trade agreements. Kirmell’s manufacturing expertise supports businesses seeking a reliable UK-based partner for component production, helping them manage costs and avoid high EU-related tariffs.

Contact us now for more information, and check out our brochure to get an idea about our services and expertise.  

US and EU flags together in a room

Other Industries Affected

The fashion and luxury goods sector, particularly brands in France and Italy, has been hit hard by the removal of the U.S. “de minimis” exemption, which previously allowed duty-free entry for goods under $800. This change has added costs to small overseas shipments, posing challenges for brands that rely on direct-to-consumer sales. Combined with tariffs on Chinese and EU-made products, many companies are rethinking their supply chains, exploring alternatives like Turkey and the UK.

Pharmaceuticals, while not heavily impacted yet, remain at risk. Industry leaders are concerned that future tariffs could lead to delayed drug availability, higher prices, and a shift in production to the U.S. In anticipation, many European pharmaceutical firms are pushing for regulatory reforms and evaluating new production bases outside the EU

Effects of the US Tariffs on EU Manufacturing Sectors

The new US tariff strategy has triggered a range of consequences across the EU, including:

  1. Rising Export Costs – The tariffs have made EU-made products more expensive in the US, leading to reduced demand and lost revenue for European companies.
  2. Supply Chain Disruption – Businesses are being forced to rethink where they source materials and how they transport goods.
  3. Production Relocation – Companies are considering moving factories to countries with better trade terms, including the US and the UK.
  4. Pressure on Jobs – Reduced exports and lower production are threatening employment in manufacturing-heavy regions.
  5. Price Inflation – Consumers in the US are paying more for EU goods, especially cars, luxury fashion, and industrial equipment.
  6. Strategic Shifts – EU firms are looking to diversify their markets, automate production, or build more resilient and local supply chains.

A factory worker working in a industry

How the EU Is Responding?

On April 12, 2025, the European Union implemented retaliatory tariffs in response to U.S. tariffs on steel and aluminium imports. ​However, when Trump announced a 90-day pause on these new tariffs, the EU agreed to it and showed eagerness to negotiate and de-escalate the situation. 

However, the EU has indicated readiness to expand countermeasures if talks with the U.S. do not yield a fair agreement. 

How Businesses Are Adapting — and How Kirmell Can Help

As US tariffs place pressure on EU exports, many businesses across Europe are adjusting their supply chain strategies. A growing number of companies are exploring ways to shift the final stages of production to tariff-friendly regions, and the UK is emerging as a preferred destination.

Rather than relocating full operations, many EU manufacturers are now opting to move only the end-of-process work, such as finishing, final assembly, quality control, or packaging, to the UK. Kirmell specialises in this type of supply chain partnership, helping businesses:

  • Complete production closer to UK and international customers
  • Avoid high tariffs on fully manufactured goods
  • Maintain quality and lead time efficiency

Thinking of Doing Business in the UK?

If you’re a business owner or manufacturer affected by the new US tariffs and you’re considering expanding or relocating to a market with lower tariffs, the UK could be a smart move. The UK still enjoys relatively favourable trade terms and is an ideal base for US and European exports.

Kirmell can help. As a UK-based manufacturing partner, Kirmell provides end-to-end production support, including precision manufacturing, metal fabrication, and supply chain partnerships. Our team works closely with you to understand your production goals, deliver tailored engineering solutions, and ensure efficient, on-time output, all from a strategic UK location. Contact us now and get started right away. 

FAQ’s

 

What are the 2025 US tariffs on the EU?

The US has applied a general 10% tariff on most imported goods from the EU, plus a 20% extra tariff specifically for EU products. Sectors like cars, steel, and aluminium are hit even harder with a 25% tariff. These new rates have made it more expensive for EU businesses to sell in the US market.

 

Why did the US introduce tariffs on the EU?

The US wants to boost local manufacturing, reduce its trade gap, and protect American jobs. It’s part of a strategy to make American-made goods more competitive. However, this move is affecting global trade and raising prices for many US buyers.

 

How are EU companies reacting to US tariffs?

Many are moving parts of their supply chain, like assembly or packaging, to countries with better trade terms. Some are also exploring new customer bases in Asia and South America. This helps reduce the impact of US tariffs while keeping their business running.

 

Which EU industries are most affected by US tariffs?

Car manufacturers, steel and aluminium producers, fashion brands, and pharmaceutical companies are among the most affected. These industries rely heavily on exports to the US. With higher costs, they’re facing tough decisions on pricing, jobs, and production.

 

Why is the UK a good option for EU companies now?

The UK has left the EU, so it follows separate trade agreements that may avoid some US tariffs. It’s geographically close and shares strong business ties with both the EU and the US. This makes it ideal for final-stage production work before shipping to America.
US and China flags in the background of container ships

China’s 2025 Reciprocal Tariffs on US Goods: What You Need to Know

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In 2025, the trade relationship between the United States and China experienced a major shift, resulting in the implementation of reciprocal tariffs. These tariffs, initiated by the US and matched by China, have created significant economic implications for both countries, as well as for global trade. 

In this article, we will explore the concept of tariffs, the history of US-China trade tensions, the details of the tariffs imposed in 2025, China’s responses to those tariffs, and the broader implications for the US economy. Finally, we will discuss potential future outcomes as this trade war continues to unfold.

What Are Tariffs?

Tariffs are taxes imposed on imported or exported goods between countries. They’re often used to protect local industries by making foreign products more expensive and encouraging consumers to buy domestic alternatives. While tariffs can benefit local manufacturers, they often result in higher prices for consumers and can trigger retaliatory tariffs from other countries, leading to trade wars.

In the case of the recent US-China trade tensions, these tariffs have not only raised prices for everyday goods but have also hurt US importers and manufacturers who rely on Chinese components and materials. Increased costs and disrupted supply chains have put pressure on businesses across industries, especially in technology, automotive, and consumer goods.

US and China containers colliding

A Brief History of US-China Trade Relations

The economic relationship between the United States and China has been marked by both cooperation and tension. In 2001, China became a member of the World Trade Organization (WTO), which was expected to lead to further integration of China into the global economy. Over the years, trade between the two countries grew significantly, with China becoming one of the United States’ largest trading partners.

However, by the 2010s, concerns about China’s trade practices started to surface. The US accused China of unfair practices, including intellectual property theft, forced technology transfers, and currency manipulation. 

By 2018, these concerns led to the Trump administration’s tariffs, marking the beginning of a significant trade conflict. The US government’s actions in 2018 were the first major steps in what would become a prolonged trade war. By 2025, new tariffs were introduced, taking the tension between the two countries to new heights.

The 2025 US Tariffs on China

Under President Donald Trump, the US administration introduced a new round of tariffs in 2025 to address ongoing concerns about China’s trade practices. The tariffs targeted a wide range of Chinese goods, including machinery, electronics, and consumer products. 

Beginning with a 10% tariff on all Chinese imports in February, the rate was raised to 20% in March, and by April, cumulative tariffs reached 145%, the highest in history. 

While intended to protect US industries, the sweeping tariffs have triggered major global trade realignments and economic uncertainty. Read more about US tariffs on China in our separate blog here. 

While the US has tightened restrictions, the United Kingdom remains exempt from these 2025 tariff hikes. This makes the UK an increasingly attractive destination for Chinese businesses looking to expand into more stable, tariff-friendly markets.

If you’re a Chinese manufacturer or exporter looking to serve the UK market, Kirmell offers specialised support through its engineering and supply chain services. From component manufacturing to reliable supply partnerships, Kirmell helps you meet UK standards efficiently and compliantly. Contact us right now for guidance.

China’s Response to US Tariffs: Detailed Breakdown

In 2025, following the United States’ imposition of tariffs on Chinese goods, China quickly retaliated with its own set of tariffs targeting a wide array of US products. China has a long history of using tariffs as a tool to exert pressure in trade negotiations, and its response to the US tariffs was no different. 

Below is a summary table of the tariffs China imposed on various US sectors and products:

Date EffectiveCategory Tariff Rate

Key Impact Sector
Feb 10, 2025Coal15%

Reduced competitiveness for US coal; demand shifts to other suppliers like Australia.
Feb 10, 2025Crude Oil10%
Disruption in US shale oil exports; China seeks alternative suppliers.
Feb 10, 2025Liquefied Natural Gas (LNG)15%US LNG faces increased competition from countries such as Qatar and Australia.
Feb 10, 2025Agricultural Machinery

10%US manufacturers like John Deere impacted; Chinese buyers explore European and domestic alternatives
April 10, 2025

Agricultural Products (e.g., soybeans, pork, cotton)

125%Significant reduction in demand for US
farm goods in China
April 10, 2025Machinery125%Increased costs for US construction and manufacturing equipment; Chinese firms turn to other markets.
April 10, 2025Electronics, Automobiles,

125%US tech products become less competitive; potential market share loss to other countries. Further higher prices for U.S. vehicles; decline in exports from manufacturers like General Motors and Ford.

Implications of China’s Tariffs on the US

China’s retaliatory tariffs had several important implications for the US economy, affecting various sectors and industries. 

Manufacturing & Supply Chain Disruptions

Many US manufacturers rely heavily on Chinese-sourced inputs, including raw materials like rare earth elements (gallium, germanium, antimony), semiconductors, and intermediate goods. With China imposing up to 125% tariffs on US imports, these manufacturers now face significantly higher costs, reduced competitiveness, and strained supplier relationships.

Inflation & Higher Consumer Prices

The cascading effect of manufacturing disruptions has been inflationary pressure on end products, electronics, iPhones, clothing, and household appliances have all become more expensive. Consumers will now pay more for goods once built affordably through China-linked supply chains.

If you’re a manufacturer or supplier affected by the US-China trade war, the UK presents a stable, business-friendly environment, and Kirmell is here to help you make the transition.

Whether you’re looking to diversify your export destinations, relocate part of your manufacturing, or tap into the UK’s growing demand for industrial products, Kirmell offers tailored solutions to minimise risk and maximise opportunity. Contact us now and get in touch with our experts to understand what we offer and how we can be of help to you. 

Future Predictions

Looking ahead, the future of US-China trade relations remains uncertain. Several factors will shape the direction of this trade conflict:

  • Ongoing Negotiations and Trade Agreements

There is always the possibility that new negotiations between the US and China could resolve the trade conflict. Both countries will likely continue negotiating to reach a compromise that addresses the core issues, including intellectual property protection, technology transfers, and trade imbalances. 

However, given the political climate and the significant economic interests at play, it is unclear how these negotiations will unfold.

China US flags alongside Chinese currency

  • Diversification of Supply Chains

Due to the tariffs and ongoing trade tensions, many businesses are looking to diversify their supply chains away from China. This trend could continue as companies seek to mitigate the risks associated with tariffs and geopolitical instability. 

While Southeast Asia, South America, and Africa are rising as alternative sourcing hubs, the United Kingdom is also becoming an increasingly attractive option, especially for manufacturers targeting Western markets. With its stable trade environment, strong industrial capabilities, and exemption from recent U.S. tariffs on Chinese goods, the UK offers a dependable, long-term solution for companies restructuring their global supply chains. 

As a UK-based precision manufacturer, Kirmell supports this transition by providing high-quality component production, engineering expertise, and trusted supply chain partnerships for international businesses. Contact us now for more information and to start your supply chain network in the UK. 

  • Technological Competition

One key area of competition between the US and China is technology. Both countries are vying for dominance in cutting-edge fields like artificial intelligence, quantum computing, and 5G technology. 

This competition will likely continue influencing trade policies as both countries seek to secure their technological futures. The US may continue to restrict Chinese tech companies, while China may respond with measures to safeguard its technological ambitions.

Conclusion

The reciprocal tariffs between the US and China in 2025 have created significant challenges for both countries and the global economy. These tariffs continue a long-standing trade conflict between the two nations. 

As companies navigate growing trade complexities, many are turning to more stable and tariff-friendly markets like the United Kingdom. For businesses looking to establish a presence in the UK, Kirmell offers tailored support through precision manufacturing, supply chain partnerships, and engineering expertise, helping global firms strengthen operations and meet industrial demand with confidence. Check out our brochure for more details and information. 

A Chinese manufacturing unit

Kirmell: Supporting Manufacturers in the UK

For manufacturers seeking to reduce exposure to high-risk trade zones, Kirmell provides comprehensive support for strengthening supply chains and expanding into the UK market.

With the UK exempt from recent high US-China tariff escalations and offering a stable, business-friendly environment, Kirmell enables global businesses to operate more strategically through high-quality manufacturing, engineering expertise, trained workers, and reliable supply partnerships. Contact us today to learn more or speak with our team.

FAQ’s

 

What is the China-US trade war and why did it start?

The China-US trade war began in 2018 when the US imposed tariffs on Chinese goods to address trade imbalances and unfair trade practices. It escalated through 2025 with reciprocal tariffs from both sides.

 

What are China’s tariffs on US goods in 2025?

China imposed tariffs on US goods, including 15% on coal and LNG, 10% on agricultural machinery, crude oil, and consumer goods, and a 125% tariff on all US imports, effective 12 April 2025.

 

What sectors are most affected by China's tariffs on US goods?

China’s tariffs have heavily impacted several key sectors of US goods. Agriculture, particularly soybeans, pork, and cotton, has seen a sharp decline in exports to China. Additionally, industries such as technology, energy, and automobiles have faced challenges as tariffs have made US products more expensive and less competitive in China’s market.

 

How can Kirmell help companies enter the UK market?

Kirmell provides expert support for manufacturers and exporters looking to shift operations or establish new supply chains in the UK. Services include market entry consulting, industrial setup, regulatory guidance, and B2B matchmaking. Learn more at our website.

 

What are the long-term effects of China’s tariffs on US trade relations?

The long-term effects of China’s tariffs on US goods include ongoing trade disruptions, higher prices for consumers, and potential shifts in global supply chains. Many companies are now exploring alternative markets and suppliers to avoid the volatility of the China-US trade conflict.
China and US flags on a processor chips

Exploring the Impact of US Tariffs on Manufacturing in China 2025

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In 2025, the United States significantly escalated its trade measures against China, imposing a series of tariffs that will profoundly impact Chinese manufacturing. These tariffs, coupled with China’s strategic responses, have reshaped the global manufacturing landscape. 

This article explains the details about the specifics of the US tariffs, their repercussions on China’s manufacturing sector, and the strategies China is employing to mitigate its reliance on the US market.​

What Are Tariffs? 

Tariffs are extra charges or taxes that a government puts on products that come from another country. This means when something is imported such as clothes, electronics, or toys from outside the country, the business bringing it in has to pay extra money to the government. 

For example, if a company in the US buys phones from China to sell in American stores, the US government might charge a fee on each phone. This fee is the tariff. The company usually adds this cost to the price, so customers end up paying more.

Governments use tariffs for different reasons. Sometimes, they protect local businesses by making foreign products more expensive, which may encourage people to buy local products instead.

What Are US Tariffs on China? 

Tariffs have been a core tool in the US’s trade approach toward China, targeting issues like trade deficits and intellectual property theft. In 2018 President Trump initiated the trade war, citing unfair trade practices and intellectual property theft.

In 2025, under President Trump’s second term, the US imposed steep new tariffs. Starting with 10% on all Chinese imports in February, they rose to 20% in March, followed by dramatic sector-specific hikes in April, reaching a cumulative 145% on some goods.

Here is the summary of the tariffs announced by the US on China:

DateSectorTariffsTotal Tariffs
2018Solar panels, washing machines, steel, aluminium, electronics10%-50%Up to 50%
2025 FebruaryAll Chinese Imports10%

10%
2025 MarchAll Chinese Imports20%30%
2025 April (Start)High Tech (Electronics, Semi-conductors)

34%

64%
2025 April (Mid)All Imports (universal), Pharmaceuticals (planned)

10% universal, 54% effective on China

145%

Read more details about these tariffs at this link. 

US China flags flying

Key Elements of US Tariffs on China in 2025

On April 2, 2025, President Donald Trump declared ‘Liberation Day,’ announcing a comprehensive tariff regime. Subsequently, on April 8, the administration increased tariffs on Chinese imports to a cumulative 145%, significantly impacting various sectors. The US tariffs on China include:

  • 10% Universal Tariff: Applied broadly to all Chinese imports.
  • 54% Reciprocal Tariff on Chinese Goods: This additional tariff is specifically aimed at Chinese goods that are perceived to be unfairly priced or subsidized. It includes categories like electronics, textiles, and more.
  • Additional Sector-Specific Tariffs: Sector-specific tariffs are targeted import taxes applied only to goods from certain industries or sectors rather than uniformly across all products. Like various sectors, such as solar panels, machinery, and certain technology items
  • Intellectual Property Tariffs: Section 301 tariffs also continue to penalize Chinese goods that are believed to be benefiting from intellectual property theft or forced technology transfers.

These tariffs reflect a larger strategy to reduce China’s trade surplus, shift global supply chains, and limit China’s technological and manufacturing influence worldwide.

Note: The tariffs on UK goods are significantly lower than those on Chinese imports. As of April 2025, Chinese products face up to 145% tariffs, while UK goods generally face only 10%, with 25% on steel, aluminum, and vehicles. This makes the UK a strategic, low-tariff alternative for manufacturing businesses looking to reduce import costs.

Immediate Effects of Tariffs on China’s Manufacturing Sector

The effects of these tariffs on China’s manufacturing industry will be substantial, no doubt about that. Below are the most significant immediate impacts that were observed in 2025 recently:

  • Export Decline

One of the tariffs’ most direct impacts will be the decline in China’s exports to the US. Many 

Analysts projected that China’s exports to the US would decrease by as much as 30% over the next few years and cut overall exports by 4.5%. With the tariff increase to 145% in April, these projections may be further exacerbated.

China and us container flags colliding

  • Economic Growth Challenges

China’s economy, which had previously grown at impressive rates, began to show signs of slowdown due to the tariffs. The manufacturing sector, which forms the backbone of China’s economic growth, was particularly hard-hit. The tariffs were anticipated to drag China’s GDP growth down by 1 to 2 percentage points in 2025, underscoring the severity of the economic impact. ​

  • Supply Chain Disruptions

Chinese factories relying on US components face rising costs and delays. Shifting operations to countries like Vietnam and Malaysia hasn’t helped much, as new US tariffs now extend to those regions, too.

Economic Impacts on Chinese Manufacturers

The immediate impact of the renewed tariffs in 2025 on Chinese manufacturers has been significant. The steep US levies, now totaling 145%, severely squeeze the profit margins of Chinese exporters, forcing difficult adjustments. 

Many exporters cannot easily absorb these tariffs without raising prices or cutting costs, which threatens their competitiveness in the US market. 

As reported by Reuters, Chinese firms have reacted by scrambling to reduce expenses and reconfigure operations. For instance, a Chinese factory owner producing cast-iron bathtubs reported he “laid off some employees, reduced management costs, and cut down on various expenses” in early 2025 to cope with shrinking foreign orders.

Some Chinese companies tried relocating production to other countries to evade US tariffs, a strategy that accelerated during the trade war and continued after 2018. For example, manufacturers opened factories in Vietnam, Malaysia, and elsewhere to ship tariff-free to the US. However, the new US trade measures in 2025, including “worldwide” tariffs, undercut this strategy. 

Which Products Will Become Expensive Due to US Tariffs on China? 

Many key US industries rely heavily on Chinese imports, and some of these will be highly affected by these new tariffs, which will make their products even more expensive for consumers:

  • Manufacturing: Heavy Machinery and Automobiles

Manufacturers are among the industries most affected by tariffs, especially those relying on imported components. Automobiles, heavy machinery, and consumer electronics are extremely dependent on global supply chains, making them highly vulnerable to tariff increases. 

For Chinese manufacturers aiming to pivot and secure more stable operations outside of U.S.-China trade routes, Kirmell offers dedicated support through its Manufacturing and Industrial Services. Specializing in precision engineering, Kirmell provides services such as presswork, fabrication, CNC machining, laser cutting, and welding. 

By partnering with Kirmell, businesses can enhance their supply chain resilience and establish a reliable presence in the UK market. Contact us now for more information.

stock trading with China and US flags

  • Electronics like iPhones and TVs

Since the vast majority of iPhones are still manufactured in China, the 54% reciprocal tariff means that products manufactured there and imported into the United States will be more expensive than before. 

  • Agriculture

Agricultural products are one of the most important markets for US products, but China retaliated against US tariffs by imposing its duties on them, significantly reducing demand. 

The retaliatory tariffs drastically reduced sales of soybeans in the United States, which rely heavily on exports to China. 

According to the American Soybean Association, soybeans will face a 60% tariff in China starting next week, double what they faced during the 2018 trade war. 

Kirmell: Your Gateway to the UK Market

If you’re a Chinese manufacturer or global business impacted by the new U.S. tariffs, Kirmell can support your supply chain needs with dependable, UK-based industrial services.

What Kirmell Offers:

  • Precision Manufacturing Services – Presswork, laser cutting, CNC machining, and fabrication tailored to your specifications
  • Supply Chain Partnership – Connect with a trusted UK partner to source high-quality components and ensure production continuity
  • Prototype & Development Support – Access rapid prototyping, tooling, and engineering services to bring products to market faster
  • Export-Focused Capabilities – ISO 9001:2015 certified manufacturing with reliable lead times and experience serving international clients

Visit Kirmell’s official website to connect with experts, or fill out our Contact Us form to start a consultation.

Conclusion

The US tariffs imposed on Chinese goods in 2025 will have a profound effect on China’s manufacturing sector. With diminished access to the US market, increased competition in global markets, and the threat of economic slowdown, Chinese manufacturers are facing considerable challenges. 

Yet, this shift has opened doors for forward-thinking businesses. With the UK exempt from new tariffs, manufacturers can explore new opportunities with support from partners like Kirmell, offering a roadmap to resilience and international expansion in an evolving trade landscape.

FAQ’s

 

What are the current US tariffs on Chinese goods?

The current US tariffs on Chinese goods vary depending on the product category. Many Chinese imports are subject to tariffs ranging from 7.5% to 25%, particularly items listed under Section 301 trade actions.

 

How much is the tariff on Chinese goods in 2025?

As of April 2025, tariffs on Chinese goods remain active under Section 301. Most goods now face a cumulative tariff of 145%, though some consumer products like electronics or clothing may still be subject to lower rates around 7.5%. For the latest rates, always check the U.S. Harmonized Tariff Schedule.

 

Are there alternative markets to the US for Chinese manufacturers?

Yes. The UK stands out as a stable alternative, especially since it is exempt from the 2025 US tariffs. Partnering with firms like Kirmell can help Chinese exporters enter the UK market smoothly and continue scaling their operations.

 

What are the current UK tariffs on Chinese goods?

The UK maintains its own independent tariff system post-Brexit, known as the UK Global Tariff (UKGT). For most goods, the UK applies low and stable tariffs, often between 0% and 10%, depending on the product category. This makes the UK an attractive and cost-effective market for Chinese manufacturers facing steep US duties.

 

Is the UK affected by the 2025 US-China trade war tariffs?

No. The UK is not involved in the US-China tariff escalations of 2025 and is exempt from the new 145% cumulative US tariffs applied on China. This has made it a preferred destination for businesses seeking a stable and tariff-friendly market to export their goods.

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