A new month brings new developments in global trade and tax. In this edition of TBA Global Monthly News, we cover major updates on shifting US tariff policies, the EU’s response, and the UK’s push for digital tax reporting. Stay informed and stay compliant with TBA Global. 

Free Consultation

Uncertainty looms around US tariff policy

On 11 April 2025, the Trump Administration issued a Presidential Memorandum which exempted specific electronic goods from an earlier Executive Order which implemented the Reciprocal Tariff Policy.  

As previously reported, on 2 April 2025, the United States introduced a ‘baseline’ 10% tariff rate on most US trading partners, and special rates for specific individual countries and regions.  On 9 April 2025, the US introduced additional tariffs which raised the total rate to 125% for goods imported from China.  The US administration subsequently suspended the special rates introduced on 2 April 2025 for a period of 90 days, defaulting tariffs to the ‘baseline’ of 10% for most trading partners. 

The 125% rate on Chinese-origin products had been a large point of contention in the electronics industry, with many analysts reporting that the price of consumer goods such as iPhones could triple under the new tariffs.  Apple reportedly increased shipments of inventory to the US earlier this year in anticipation of the impact to its business due to the uncertainty surrounding tariffs. 

Other industry players such as Sony announced that it would increase pricing for the PlayStation 5 games console in Europe, Australia and New Zealand.  Although no price increases for the US were announced, many industry analysts have speculated that it may be an attempt to spread the costs of the US tariffs to other regional markets.  Nintendo, an industry competitor, had announced that it would suspend pre-order sales of its new Switch 2 game console in the US until further notice.

The new exemption includes smartphones, computers and certain other electronic devices, and the exemption will be backdated to 5 April 2025.  Industry players have responded, with Nintendo reinstating preorder sales in the US. 

Nonetheless, the US Administration has suggested that the exemptions will be supplemented by a future ‘semiconductor tariff’, the details of which have yet to be announced.

As of 12 May 2025, the US and China announced a temporary rollback of tariffs (down to 30% on Chinese goods to the US, 10% on US goods to China) for a period of 90 days pending further negotiations.   It remains unclear as to whether the touted ‘semiconductor tariff’ will feature in later discussions.

EU postpones retaliatory measures pending further negotiation

The European Union has announced that it will temporarily suspend retaliatory measures against the United States.

On 14 April, the EU adopted two measures which both adopted the retaliatory measures, and implemented a temporary suspension until 14 July 2025.

The retaliatory measures were previously discussed and approved by the European Commission on 9 April 2025.  The countermeasures included tariffs of up to 25% on a range of various goods imported from the US, including foodstuffs, raw materials and luxury products. 

The suspension is intended to allow space for ongoing negotiations, and comes as the US also announced a temporary suspension of special tariff rates imposed against the EU.

Making Tax Digital (MTD) for Income Tax due to launch next year

HMRC has announced that the Making Tax Digital (MTD) initiative will become available for qualifying Income Tax payers on 6 April 2026.

From 6 April 2026, qualifying Income Tax payers earning over £50,000 per annum will be required to use MTD to declare their income.   This includes sole traders and landlords who have additional income to declare:

From April 2026, individuals with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. These digital requirements will help businesses save time through more efficient record-keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations throughout the year.

Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028.

The phased introduction of MTD for Income Tax follows the successful implementation of MTD for VAT, which now helps more than two million businesses reduce errors and save time on their tax affairs. Businesses which joined the MTD for VAT testing phase were better prepared for the move to quarterly reporting.

This follows a widespread push towards the use of MTD in other areas of taxation such as VAT.   HMRC is encouraging eligible taxpayers to sign up for a testing programme in advance of the rollout date.  

For more information, get in touch with us at info@tbaglobal.com for a free one-to-one consultation.