Today (27 August), the UK’s EU relations minister steps up to defend Labour’s bid to ‘reset’ post-Brexit trading conditions, US tariffs on India come into effect, and Canada and Germany announce closer cooperation on critical mineral projects.
Thomas-Symonds defends closer EU ties
EU relations minister, Nick Thomas-Symonds, is set to announce plans to secure the much-touted EU-UK SPS deal by the end of 2027, according to Politico.
In the set-piece speech, delivered at an event hosted by arch-Brexiteer and former Conservative minister Michael Gove, Thomas-Symonds is expected to argue for the benefits of greater alignment between Brussels and London on food and drink regulations.
The speech comes following criticism of Labour’s Brexit ‘reset’ and efforts to secure closer EU trade ties by Reform UK leader Nigel Farage, whose party is polling 10 per centage points higher than Labour among voters.
Thomas-Symonds is set to argue that Farage, who claimed he would row back on pledges made between the EU and UK at the May summit, “wants Britain to fail” under the weight of post-Brexit “red tape”, the FT reports.
UK firms reportedly spent £65m on licences to facilitate post-Brexit food exports to the EU last year, according to the Guardian.
Tariff pain for India
Indian firms are bracing for the impact of 50% tariffs on their US-bound exports, as the new duties went into effect today (27 August), the Guardian reports.
New Delhi’s own protectionist trade policies and tough stance in tariff negotiations this summer led to a 25% duty being levied. This was doubled to 50% in response to increased Indian purchases of Russian oil, which US president Donald Trump says are funding Moscow’s war against Ukraine.
Earlier this month, the FT reported that Indian manufacturers are nervous about the rates, which could undermine prime minister Narendra Modi’s push to replace China as the world’s factory.
EU tariff defence
In other US tariff news, the EU has hit back at Trump’s recent tariff threat towards countries imposing what he described as “discriminatory” digital services taxes.
Brussels – which regulates social media sites, search engines and other online platforms under the EU’s Digital Services Act (DSA) – defended its right to set its own regulatory policy yesterday (26 August), Politico reports.
European Commission spokesperson, Paula Pinho, said it was “the sovereign right of the EU and its member states to regulate economic activities on our territory, which are consistent with our democratic values”.
EC spokesperson, Thomas Regnier, also refuted Trump’s claim that the act is discriminatory, adding that “the DSA does not look at the colour of a company, at the jurisdiction of a company, nor the owner of a company”.
He also highlighted that the last three companies penalised under the Act were Chinese-owned: TikTok, Temu and AliExpress.
Critical mineral consensus
Canada and Germany have agreed to closer cooperation on critical mineral projects and supply chain security.
During Canadian PM Mark Carney’s European visit, both nations released a joint statement on critical minerals.
In the statement, they agreed to “recognize the strategic importance of critical minerals to the economic and national security of our countries, including defense applications, the energy transition, clean technology manufacturing, and advanced manufacturing”.
The statement comes as China’s critical mineral export curbs continue to harm global industry, given the nation’s continued dominance across the breadth of the supply chain, from extraction to processing.
“Lithium, rare earth elements, copper, tungsten, gallium, germanium, and nickel” would be the focus of “coordinated efforts” – materials over which China has a monopoly.
German chancellor, Friedrich Merz, said that “this is a collaboration that I very much welcome and that we support", while Carney said that recent global events had exposed vulnerabilities in critical mineral supply chains.
Also in the news
- The FT reports that Norway’s sovereign wealth fund – the world’s largest – has divested from construction equipment firm Caterpillar over allegations that its products have been used by Israeli forces to destroy Palestinian property. This comes as Politico reports that NGOs, including Amnesty International, warned UK businesses to cut ties with companies profiting from “ongoing genocide” in Gaza
- The Times reports that one dividend of successful EU-UK SPS talks would be cheaper food imports, with continental staples like cheese, olives and sausages costing less
- Despite his harsh stance against India’s Russian oil purchases, Trump today said he was “very angry” that Ukraine targeted a Russian oil pipeline. The reason? It supplies Hungary, led by ally Viktor Orban. Politico has the full story
Yesterday in trade
- Postal services worldwide refuse to ship low-value consignment to the US, ahead of the closing of the country’s ‘de minimis’ exemption this week (29 August)
- Fresh Trump tariff threats on furniture imports and countries levying a digital services tax
- EC president Ursula von der Leyen embarks on a media blitz to defend her US tariff deal amid criticism from political heavyweights like European Central Bank head, and former Italian prime minister, Mario Draghi
You can read those stories here.