US Tariffs and the Global Response: what it all means for the UK tech sector
This insight is live and will be continuously updated as new announcements are made.
On Wednesday, 2 April, President Trump announced sweeping new tariffs.
The US will to impose an additional ad valorem duty of 10 percent tariff on all trading partners, including the United Kingdom, and “reciprocal tariffs” for a group of countries that he considers to be treating the US unfairly.
The “reciprocal tariffs” will apply to the US major trading partners including the European Union that will be subject to a “reciprocal tariff” of 20%. “These additional ad valorem duties shall apply until such time as I determine that the underlying conditions described above are satisfied, resolved, or mitigated”. The reciprocal tariffs will be added to the normal tariffs.
The United States will impose a new 34% tariff on Chinese goods, on top of the 20% levy they already imposed on Beijing. The “De minimis rule” for low value shipments from China will also end.
A new tariff 24% will be applied on goods from Japan and a 26% on imports from India.
Implementation will be in two steps:
The additional ad valorem rate of duty of 10 percent shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 EDT on April 5, 2025.
The “reciprocal tariffs” duties shall apply at 12:01 EDT on April 9, 2025. All articles from trading partners enumerated in Annex I to this order imported into the customs territory of the United States shall be, consistent with law, subject to the country-specific ad valorem rates of duty specified in Annex I to this order.
In addition, a new tariff of 25% on cars made outside of the United States has come into effect today, 3 April, adding to previous tariffs on steel and aluminum already in place.
Other products, like lumber, copper, semiconductors, pharmaceuticals and critical minerals could face additional tariffs.
UK response
The UK has signaled it will not retaliate for now and will continues to negotiate a framework agreement with the US that will have a focus on technology. The hope is that this agreement will see some carve-outs from the tariffs.
It has been reported that lowering the digital services tax, and reviewing implementation of online safety and competition regulations are all on table.
This morning in Parliament, Business and Trade Secretary Jonny Reynolds has announced a request for input on the implications for British businesses of possible retaliatory action. techUK will be responding to this consultation and will share a draft with members in due course. Members are encouraged to contribute individually as well. The deadline for input is 1 May.
EU response
European Union leaders reacted with dismay and promised a united response. While also seeking a negotiated solutions, Von der Leyen said this morning the Commission is already finalizing its countermeasures in response to Trump’s earlier announcement of steel tariffs and preparing more to hit back against the newest set of levies.
A final decision is expected next week on EU retaliation against US steel and aluminum tariffs and that will give an indication of EU willingness to retaliate like-for-like. The European Commission is expected to present to EU countries on Friday the consolidated list of US goods it plans to hit in retaliation to US tariffs on imports of steel and aluminium, with a vote expected on April 9. The tariffs are expected to take effect on 13 April.
A new retaliation package is expected later in the spring, if no negotiated solution found. Services could then start to come into scope. This can be done using existing powers by activating the Anti-Coercion Instrument (ACI).
China response
Long-term trends of tech self-sufficiency are likely to remain in place due to tariffs, sanctions and other international barriers -- but also because of China’s long-term strategic transition to a more innovation-driven economy.
China’s commerce ministry called for Washington to “immediately cancel” the tariffs, warning they “endanger global economic development” and would hurt US interests and international supply chains.
“There is no winner in a trade war, and there is no way out for protectionism,” the ministry said. Beijing has promised countermeasures.
Japan response
Prime minister Shigeru Ishiba said: “Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for [the US] to apply uniform tariffs to all countries.”
Trade and industry minister Yoji Muto described the tariffs as “extremely regrettable” and said Tokyo was still attempting to persuade the Trump administration to think again.
Shares in Tokyo reacted negatively, with the Nikkei Stock Average slumping by 4% at one point, taking the benchmark index to its lowest level for eight months.
India response
India got a 26% tariff on all Indian goods imported into the US. The Ministry of Commerce was analysing the impact of the tariffs.
The Indian government had worked hard in recent weeks to negotiate tariff concessions. Electronic products, jewelry, textile and IT industries are all hit by the new tariffs. However, pharma is one of India’s biggest export industries and it has not yet been hit by US tariffs.
India is considering slashing tariffs on 23bn USD worth of US imports, in a bid to appease Trump and bring down the tariffs, but no trade deal has been finalised yet.
South Korea response
South Korea’s acting president, Han Duck-soo, has vowed an “all-out” response and instructed senior officials to urgently address the crisis during an emergency meeting of his economic and security strategy taskforce.
Australia response
Prime minister Anthony Albanese said that the new tariff regime was a hostile act against an ally.
Australia got the 10% tariff - same as the UK - but Albanese criticised the move: “The administration’s tariffs have no basis in logic and they go against the basis of our two nations’ partnership. This is not the act of a friend.”
Albanese said his government would not impose retaliatory tariffs against America – currently at zero in both directions – and said that, ultimately, the American people would bear the burden of Trump’s tariffs.
Some critical minerals coming out of Australia, not available in the US, will be exempt from the new tariff regime.
New Zealand response
New Zealand is also hit by the universal 10% tariff. Prime Minister Luxon said: “There’s about $900m worth of tariff being levelled at New Zealand exporters, and that will be passed on to US consumers sadly. It ends up driving higher prices for US consumers, higher inflation, slows down growth and as a result that puts real pressure in across the world.”
Luxon said he would be seeking discussions with US officials over their claim New Zealand was imposing a 20% tariff on US imports: “We don’t understand how that figure has been calculated.”
The US is New Zealand’s fastest growing export market, becoming its second largest in 2024, ahead of Australia and after China.
techUK is monitoring the global reaction to the announced tariffs and the implications for our sector in the UK and abroad.
Members who have questions on any of the above can reach out to [email protected]
Sabina Ciofu
Associate Director – International, techUK
Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.
As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.
Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.
Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.
She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
techUK International Policy and Trade Programme activities
techUK supports members with their international trade plans and aspirations. We help members to understand market opportunities, tackle market access barriers, and build partnerships in their target market. Visit the programme page here.
techUK Report - Enabling Growth and Resilience: the UK Tech Sector in an Uncertain World
New techUK report outlines key policy recommendations to boost the UK’s growth through the tech sector amid global challenges, emphasising resilience, trade leadership, and strategic investment.
Do you have a trailblazer in your team?
Do you work with an innovator or a problem solver?
Do you have an inspirational colleague who deserves the spotlight for their work? The President’s Awards are back for 2025 and open for nominations. All techUK members are encouraged to nominate one colleague.
Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.
Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.
As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.
Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.
Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.
She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
Policy Manager for International Policy and Trade, techUK
Daniel Clarke
Policy Manager for International Policy and Trade, techUK
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.
Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.
Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
Lewis' programmes cover a range of policy areas within Market Access (international trade regulation, sanctions and export controls, technical standards and product compliance, supply chains) and Consumer Tech (media and broadcast policy, consumer electronics, and connected home technology).
Prior to joining techUK, Lewis worked in government affairs and policy roles for international trade associations in Southeast Asia including the American Malaysian Chamber of Commerce and the European Chamber of Commerce in Cambodia.
He holds an undergraduate degree in Social and Political Sciences from the University of Cambridge and an MSc in Public Policy & Management from SOAS University of London.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the Local and General Election and working for the Casimir Pulaski Foundation. As well as working for multiple charities on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). Tess obtained her Bachelors of Arts in Politics and International Relations from University of Nottingham.
