On April 5, 2025, the United States imposed a 10% tariff on imports from all countries, and on April 9, it added reciprocal tariffs for countries with large trade surpluses, such as China (34%), Japan (24%), and the EU (20%). These changes, initiated by President Donald Trump's executive order, are aimed at reducing the US trade deficit, developing domestic production, and reducing dependence on foreign suppliers. Find out how to open a company in the USA to adapt to the new conditions? How will this affect global trade and what does it mean for Ukraine?
Why did the US impose new duties?
The US trade deficit is a situation where a country imports more goods than it exports. The main reasons for US import tarrifs are:
- High domestic consumption: Americans buy a lot of imported goods because of affordability and variety.
- Offshoring: US companies open factories in countries with lower taxes and cheaper labor.
- Strong dollar: A stable currency makes imports cheaper and exports less competitive.
- The new US tariffs should reverse this trend, stimulating domestic production and reducing dependence on other countries.
How were the new tariffs calculated?
The methodology is simple: the tariff depends on the trade balance between the US and a particular country. For example:
- China exports $438 billion worth of goods to the United States and imports $295 billion. The difference is $143 billion (68%). Dividing by 2, we get a 34% duty.
- For Ukraine, where the volume of trade with the US is approximately equal or slightly less than imports, a 10% basic tariff is set.
- The 10% basic duty applies to countries with a neutral or negative trade balance, such as the UK, Australia, and Ukraine.
How will the new US 2025 duties affect global trade?
The increase in tariffs on imports to the US in 2025 will have a wide-ranging impact, namely on:
- Rising costs: logistics and customs clearance will become more expensive, especially for countries with tariffs of more than 30% (China, India, EU).
- Decreased export profitability: companies focused on the US market will suffer.
- Higher prices in the US: consumers will feel a decrease in purchasing power.
- Small business crisis: selling goods from China through Amazon or eBay will become less profitable.
- Search for an alternative to the dollar: countries will be more actively looking for new currencies for international payments. We always recommend opening multi-currency accounts in foreign banks and payment systems.
Impact of the new duties on Ukraine and Ukrainian exports
The 10% basic duty rate on imports to the United States, which came into effect on April 5, 2025, may affect small and medium-sized businesses in Ukraine, namely Ukrainian producers who are focused on the US market.
According to the National Institute for Strategic Studies of Ukraine, the greatest risk arises for exporters of metallurgical products. In particular, about 73% of Ukrainian pig iron is exported from Ukraine to the US market.
If China, Japan or the EU impose mirror duties in response to US tariffs, this will open a window for Ukraine. A reduced US presence in Asia and Europe will allow Ukrainian producers to:
- Find niches in the EU and Asia.
- Expand exports of goods from Ukraine, such as metal products, agricultural products, and IT services.
How to adapt to the changes?
Companies working with the US market should review their strategies:
- Logistics optimization: reduce transportation costs.
- Search for new markets: Asia and the EU can be an alternative: Contact Maira Consult today to adapt your business to the new US tariffs of 2025.
The new US tariffs of 2025 are a game changer in global trade. For Ukraine, this is both a challenge and an opportunity. While the US market is becoming more expensive for exporters, prospects are opening up on other continents. Maira Consult is ready to help your business with company registration in Ukraine and European jurisdictions and tax planning.
