US announces new tariff rates, delays implementation again

In the most recent tariff updates announced today, the US has raised tariffs on more than 90 countries, including Canada, Brazil and South Africa. The new tariffs will come into effect in seven days, another pause from US president Trump, that will give additional time for the US Customs and Border Protection (CBP) to make the necessary changes to record and collect the duties.

The US raised tariffs on Canada to 35%, while higher tariffs on Mexico were paused for another 90 days.

Trump’s administration also implemented tariffs of 40% and potential additional fines on goods determined by the CBP to have been transshipped to evade tariffs. It is not clear how the CBP will determine this or implement these charges.

In a statement, the White House said: “President Trump is using tariffs as a necessary and powerful tool to put America First after many years of unsustainable trade deficits that threaten our economy and national security.”

OEMs face financial losses as tariffs bite

OEMs are beginning to see the real impact of the tariffs imposed by the US, with profits and operating income for the first half of the year taking hits of billions of dollars.

Megan Kelly

Effect of tariffs on profitability

Tariffs are taking their toll on the profitability of businesses, including those in the automotive industry, as can be seen in the recent financial reporting of OEMs.

The UK, despite having one of the best deals with the US with a 10% tariff on vehicle and automotive part exports, is feeling the effects. More than three-quarters (78%) of UK business have already lost profit due to the tariffs, according to new research by AI-driven rebate and pricing management platform Enable, while 91% of UK businesses fear the impact of tariffs over the next year. While 86% of companies surveyed said they plan to increase prices to offset tariff impacts, 66% said it could take months to implement.

“With costs shifting unpredictably and 92% of UK businesses admitting their current pricing responsiveness risks further profit loss, pricing agility has become an essential survival skill,” said Andrew Butt, founder and CEO, Enable. “The lag between tariff updates and implementing price changes creates a window where competitors with faster pricing capabilities can capture significant market advantage.”