UK publishers still hit with 10% export tax as Trump pauses higher rates but hands China 125% levy
As suddenly as the Trump tariffs were imposed, the higher rates have been put on a 90-day suspension, bringing everyone into line with the UK’s 10% levy – apart from China where the rate has been hiked to 125%.
Greeting card publishers who export to the US were already battling the confusion and uncertainty over the extra 10% duty levied on all goods manufactured in Britain – which came into effect on Saturday, 5 April, as reported by PG Buzz on Tuesday – when US president Donald Trump made the unexpected decision which has been widely reported in the media.
Donald Trump had only announced the new import duties last Wednesday, 2 April, with rates ranging from 10% to 54% to balance what he claims are unfair trade deficits, with the lowest level affecting the UK, Australia, New Zealand and Brazil among others, coming into effect just three days later while the rest began early on Wednesday, 9 April, targeting what the president termed as “the worst offenders” including the European Union at 20%. However, Russia has still escaped being hit with any extra duties.
Goods from China were originally to be hit with a 54% duty, raised to 104% before it kicked in this week, and now it’s the only country paying a higher levy after the 47th president’s latest pronouncement came late yesterday, with the rate increased to 125% because Chinese president Xi had announced retaliatory tariffs of 84% on goods imported from America, which Trump called “a lack of respect for the world’s markets”.
Despite the EU having announced its own 25% tariff on US imports, Trump said via his own social media platform Truth Social: “Based on the fact that more than 75 countries have called representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and that these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90 day pause, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately.”
At a White House event on Wednesday afternoon the president told reporters he had relented because people were getting “yippy” and “a little bit afraid”, causing days of stock market panic and rippling effects across various economic sectors, and added: “It was written as something that I think was very positive for the world and us. We don’t want to hurt countries that don’t need to be hurt. And they all want to negotiate.”
While the reduction to 10% is good news for exporters from areas where higher rates had been expected, British publishers such as Ohh Deer, Dean Morris Cards, Wrendale Designs, Redback Cards, and Santoro, who deal directly with retailers in the US, and American distributors like Notes & Queries, Calypso Cards and Nelson Line, which import cards from the UK, have no changes to the issues the new tariff creates.
Calypso and Nelson Line owner Dalton Laluces, who acquired both businesses in the last year, said: “The vast majority of our UK publishers produce their greeting cards in the UK. Local printing is part of what defines their brand – there’s a strong emphasis on quality, consistency, and supporting regional manufacturing. Some may produce occasional items in China, but that’s rare.
“In the short term, we’re absorbing the cost. We already have shipments in transit that were ordered before the change and, in some cases, those items have already been sold. That leaves no room to adjust pricing retroactively. Going forward, though, we’ll likely have to reassess our pricing. As much as we’d prefer to avoid increases, we also need to maintain a sustainable margin.
“So far, customers remain committed to the UK brands we carry. UK publishers bring something distinct – whether it’s their wit, design style, or production values – and that’s not easily replicated. For many consumers, greeting cards are personal purchases. They’re looking for something meaningful, and they value authenticity and creativity over price alone. That sets UK publishers apart and keeps them relevant, even in a more challenging economic environment.”
He explained that the tariffs are collected by the freight forwarders, who handle the consolidation of shipments, prepare customs documentation, and process the duties which the importer has to pay before the stock is released, so it’s all handled at the point of import.
There is currently a de minimis exemption where shipments under $800 (£622) aren’t subject to the extra duty but that is being revoked for Chinese-manufactured goods from 2 May, and it’s unclear currently if it will be removed for other countries’ exporters as well.
From that point goods valued under $800 sent from China by the international postal system will attract a duty rate of 30% of its value, or $25 (£19.41) per item, then from 1 June that’s set to be increased to $50 (£38.84).
Calypso works with British publishers including ArtPress, Cake & Crayons, Cinnamon Aitch, Cressida Bell, Emotional Rescue, Hammond Gower, Heyyy Cards, Klara Hawkins, Lagom Design, Liz & Pip, Lola Design, Louise Tiler, Lucilla Lavender, Megan Claire, Rocket68, Rosie Made A Thing, Sally Scaffardi, Sooshichacha, Stephanie Dyment, Stop The Clock, and Wendy Bell Designs. Nelson Line deals with ArtPress, Earlybird, James Ellis, Kiss Me Kwik, Woodmansterne, Jolly Awesome, and Emily Nash.
Dalton said trade shows, including PG Live are vitally important to the company: “It allows us to see new collections in person and build relationships with publishers. We also receive outreach from publishers interested in expanding to the US market, so it’s a combination of proactive sourcing and inbound inquiries.”
Regarding the current situation, he added: “Tariffs can be a useful tool in trade policy when applied carefully but, in this case, the rollout felt abrupt. Businesses like ours didn’t have much time to prepare or plan ahead.
“As for reshoring manufacturing, it’s a worthy goal, but it’s a long-term process. The reality is that many products, especially those requiring specialised printing, can’t be produced domestically right now at a competitive price. In the meantime, businesses like us are left navigating rising costs and uncertainty.”
