Trading with Uncle Sam: Navigating U.S. Tariffs in 2025

For business professionals engaged in international trade, customs tariffs play a crucial role in shaping costs, supply chains, and market strategies. Often, they go unnoticed and are simply accepted as a cost of doing business. However, tariffs have been a hot topic in early 2025, with discussions of international trade wars as countries impose retaliatory tariff increases.

If you're unfamiliar with customs tariffs, this guide will explain what they are, why they exist, and how they can impact your business.

What Are Customs Tariffs?

A customs tariff is a tax imposed on goods when they cross an international border. Governments use tariffs to regulate trade, protect domestic industries, and generate revenue. When an imported product arrives at a country's border, customs authorities determine the tariff based on factors such as product type, country of origin, and trade agreements.

Before the UK left the EU, goods moved freely across borders without customs formalities. Since Brexit, certain goods moving between the UK and the EU have been subject to tariffs, as anyone involved in trade with the island of Ireland will know.

Why Do Countries Impose Tariffs?

• Tariffs protect domestic industries by making imported goods more expensive, encouraging consumers to buy local products, which has been a key theme in 2025.
• Tariffs can also serve as a source of revenue, particularly for countries that rely heavily on trade taxes.
• Additionally, tariffs play a role in trade negotiations, with countries offering lower tariffs as incentives for economic partnerships.
• In some cases, tariffs are introduced to counteract unfair trade practices, such as dumping—where products are sold at artificially low prices—or government subsidies that distort competition.

How Customs Tariffs Affect Businesses

For businesses involved in importing and exporting, tariffs can have significant financial and operational consequences. They increase the overall cost of imported goods, which can lead to higher consumer prices. Companies may need to adjust their supply chains, sourcing materials from different countries or revising pricing strategies to remain competitive. Additionally, compliance with tariff regulations requires navigating customs classifications, tariff codes, and potential exemptions, all of which demand careful documentation and planning.

Impact of U.S. Tariffs on Irish Exports

For Irish businesses exporting to the U.S., tariffs can significantly impact market access, pricing, and competitiveness. The increase U.S. import tariffs announced this week across all sectors are likely to have widespread effects on key Irish exports. Industries such as pharmaceuticals and medical devices, which typically benefit from lower tariffs under trade agreements, face higher costs as a result of this policies shift. The agri-food sector, including Irish dairy, beef, and whiskey, has encountered tariff challenges in past trade disputes and could be affected again. Export to the U.S. represented almost one third of all Republic of Ireland exports in 2023, while business in Northern Ireland sold over £1bn worth of goods to the U.S. in the same period.

Navigating Customs Tariffs Effectively

Businesses can take several steps to manage the impact of tariffs. Staying informed about trade policies and tariff updates is essential. Working with customs brokers can further ease the process, ensuring compliance and helping businesses navigate complex tariff structures.

How Can We Help?

At Woodside Global, we have decades of experience in international trade, supporting businesses across Ireland and the UK with their import and export needs.

If you need assistance navigating tariff changes or exploring new shipping markets, get in touch today:

 +44 (0) 28 9384 4848 | freight@woodsides.com