The latest government data on UK business behaviour indicated a long-term decline in the proportion of companies selling abroad.
Another major US retailer received a tariff windfall refund, while more warnings have been issued about global grain supplies as Ukraine wheat exports slumped amid a Russian blockade.
UK exporting down in long-term
The latest annual report on UK business exporting behaviour has been published by the Department for Business, Innovation, Science and Trade (BIST).
Data gathered in 2025 showed exporting levels consistent with the previous year, although over a four-year period the proportion of exporting businesses fell from 45% to 35%, with lower levels of exporting than 2015 and 2020 (40% to 42%) that were also deemed statistically significant.
The most commonly reported barriers to trade were related to “customs procedures and compliance regulations” (53%) and “administrative costs and regulations abroad” (28%).
It was found that among all businesses with a turnover of £500,000 or more 76% had heard of free trade agreements (FTAs) but only 20% “reported any knowledge of them”.
Of those that already export, awareness of FTAs was greater than businesses in general (81%) but there was still a low of level knowledge (23%) when compared to non-exporting firms.
Tariff latest
US retailer Target reported that it received tariff refunds totaling almost US$1bn.
The retail chain, which sells items including clothes, toys, electronics and beauty products, which it imports from dozens of countries worldwide, with China its leading supplier. Its operating income doubled from US$1.3bn to US$2.6bn in Q2 as a result of the pre-tax US$994m reimbursement.
Despite the White House’s claims that it would obfuscate over the repayment of last year’s reciprocal – ‘liberation day’ – tariffs, the administration has implemented a full reimbursement programme.
Earlier this month it was reported that $100bn had already been paid back to businesses, and the Target is not the only company receiving a tariff windfall. Japanese game-maker Nintendo’s profits rose over 50% in Q2 as a result of its £694m tariff refund.
Grain price surge amid Ukraine export slump
Wheat prices have risen significantly as Ukraine – the world’s fifth-largest exporter of the grain – endures a blockade caused by Russian attacks on Black Sea ports and commercial vessels.
The FT reports that wheat futures – contracts to buy the commodity at a later date – have risen to three-year highs as Ukraine grain exports fell 75% on last year’s figures.
The managing director of a research firm dedicated to Black Sea agricultural markets – SovEcon’s Andrey Sizov – compared the situation unfavourably to oil price spikes resulting from the Strait of Hormuz blockade.
“It’s worse for the wheat market than Hormuz was for crude”, Sizov told the publication, adding that “the longer this drags on, the bigger the consequences we will see”.
Experts have previously warned that disruption to Black Sea grain supplies imperil global food security, with a number of nations in the Middle East and North Africa importing a substantial amount of their grain from the region.
EU-Bangladesh trade deal
Bangladesh is seeking a trade deal with the EU, as Politico reports that Brussels and Dhaka will hold preliminary talks in the coming weeks.
A European Commission (EC) spokesperson said that Brussels is “prepared to engage” in talks.
The talks come as Bangladesh is set to progress from ‘Least Developed Country’ status on 24 November, which would mean losing duty-free and quota-free to the EU single market. A trade deal setting out preferential rates on key goods would be necessary.
Bangladesh’s commerce minister minister, Khandakar Abdul Muktadir, last week told a seminar audience:
“We are taking initiatives to sign FTAs to ensure preferential market access for Bangladeshi investors in global markets before LDC graduation.”
In addition to the EU, Bangladesh is also seeking to sign FTAs with both Malaysia and Indonesia. Muktadir said negotiations will take place with 10 to 12 countires.
Politico also noted that preferences that would remain under the Generalised Scheme of Preferences (GPS) wouldn’t apply to Bangladesh’s lucrative textiles sector. To qualify for GSP a country can’t account for more than 37% of EU imports in a given sector and Bangladesh currently makes up 50%.
Elsewhere in the headlines
- Technology was listed as the leading cause of a UK productivity boost, according to the FT
- Senior EC figures spoke out in support of the International Criminal Court yesterday, after the US sanctioned senior officials and judges
Yesterday in Trade
- The US suspended 50% tariffs on Canada for three days before making a deal with its neighbour
- The UK indicated it would discuss its digital services tax with the US, after tariff threats from the country’s Trade Representative Jamieson Greer
- UK inflation figures rose in response to energy price spikes, while food cost increases slowed
You can read those stories here.
