It was another big week for trade, as the US opened fresh talks with China following mounting tensions. There was also a major milestone for the Chartered Institute of Export & International Trade, as well as a significant UK announcement on food and drink imports from the EU.
The big picture: The next phase in US president Donald Trump’s tariff war began this week, as he hit steel and aluminium imports with a new, higher tariff rate of 50%, doubling the previous one.
Announcing the measure, he said that it would mean “we're going to produce our own metal, unleash our own energy, secure our own future” – and came after he backed a deal for Japan’s Nippon Steel to take over US Steel.
The broader story on US tariffs could also be set to take a turn after the US and China confirmed a new round of formal trade talks following a discussion between Trump and Chinese president Xi Jinping. Tensions between the two countries escalated earlier this week as each accused the other of refusing to implement aspects of the temporary tariff truce agreed last month.
There was also internal US turmoil over tariff policy, as one-time Trump ally Elon Musk broke ranks with the president to write on X that (among other things) the measures would “cause a recession in the second half of this year”.
Good week/bad week: It was a special week for the Chartered Institute of Export & International Trade, which began its 90th anniversary celebrations with an event for stakeholders in London on Wednesday. Andrew Pakes, Peterborough MP and speaker at the event, drew attention to the Chartered Institute’s work to boost skills in trade, while our director general, Marco Forgione, said he hoped it would continue to play an “instrumental part” in empowering global trade.
A less positive week, however, for Europe’s hopes of a new trade deal with Australia, with the country’s trade minister Don Farrell calling for an improved offer from the bloc in an interview with the FT. “We have rejected their two previous offers. We want to see a bit of goodwill, and that means getting a better offer,” Farrell said. A previous round of talks on a deal ended abruptly in Japan in 2023.
Quote of the week: "Companies will be eager to see the back of burdensome administration for sanitary and phytosanitary (SPS) goods, with many people keen to understand a timeframe for the SPS agreement, and what the new framework will look like, so that traders can adequately prepare."
Chartered Institute SPS expert Joseph Goldsworthy on the announcement from the Department for Environment, Food & Rural Affairs (Defra) that it is “scrapping” border checks on fruit and vegetables imported from Europe, following prime minister Sir Keir Starmer’s commitment to establishing an SPS agreement with the EU.
How’s stat: 90 – the number of years the Chartered Institute has been supporting traders to import and export. You can read our director general’s thoughts on the milestone here, and watch our recent retrospective video at this link.
The week in customs: This week, we had a member-exclusive explainer from our expert Garima Srivastava on how you can use customs special procedures to reduce or eliminate tariff fees levied on your goods. You can read that one in full here.
What else we covered this week: Yesterday’s member-exclusive China Trade Digest rounded up some of the country’s biggest trade stories. Not only did we cover the tensions that preceded Trump and Xi’s constructive phone call, we also looked at discord between China and the EU over procurement in the medical devices sector.
An OECD report published this week suggested that – as Musk predicted – Trump’s tariff policy could be set to slow growth in the US and beyond later this year. It said that lowering barriers to trade would be “instrumental” in mitigating this slowdown and fighting renewed inflation.
Founder and CEO of Cambio Consultancy Peter Ptashko spoke to our executive editor Will Barns-Graham at the start of Pride Month. They discussed the continued relevance of diversity, equity and inclusion (DEI) in the new era of global trade being ushered in by the US.
There was a boost for UK defence investment as the government announced the outcomes of its Defence Spending Review, which prime minister Sir Keir Starmer said would create “new jobs, skills and opportunities [while] driving huge growth in industrial capacity”.
True facts: You must be pollen my leg: last Saturday, the challenge of moving SPS goods came into particular focus for the driver of a 70,000-pound haulage truck in Washington, US, as it rolled over and released 250m honeybees near the Canadian border.
Moving bees into the UK from the EU changed after the country’s exit from the bloc, after which it was only possible to import queen bees from the continent. Those looking to bring in the rest of the hive are now advised to check the official guidance of the National Bee Unit.
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