Amid the Democrats’ legal challenges to the latest round of US tariffs, President Trump’s White House has issued substantial refunds to importers that paid last year’s ‘liberation day’ duties.
Elsewhere, there’s a stark warning about the decline of the UK’s specialist chemical sector – a reflection of weak domestic supply chains that pose significant challenges for downstream manufacturing.
Trump tariff refunds
The Trump administration’s ‘liberation day’ tariff refunds have now hit the US$100bn mark, approximately 60% of the duties collected following their introduction in April 2025, according to US customs officials.
Following the Supreme Court’s February 2026 decision that the ‘reciprocal tariff’ regime introduced in 2025 was unlawful, Treasury Secretary Scott Bessent said the refund process could “take years to litigate and to get to the payouts”.
While analysts have been “pleasantly surprised” by the pace with which the refunds have both been processed and delivered, Democrats have claimed that refunding US importers will do little to support US consumers who will ultimately have absorbed the cost.
Democratic Congress member Greg Casar told the FT that “every single cent of these refunds should go back to American consumers”.
The publication also reports that small businesses buying imported goods from larger firms have similarly missed out on the reimbursements as refunds can only be accessed by the importer of record.
The news follows the latest US announcement of flat tariff rates applied widely to dozens of trading partners. This time the administration has used an investigation into forced labour in those partners’ supply chains as the rationale for applying import taxes of between 10 and 12.5%.
Democrats have sued the White House in response, with lawsuits filed with federal courts in 25 Democrat-led states.
UK chemical industry decline
A report by Imperial College London has indicated a downward trend in UK specialist chemical manufacturing, citing weakening domestic supply chains and stiff competition from China among reasons.
Per the FT, the study suggests that while non-specialist chemical manufacturing has been in decline for decades, the UK’s specialist chemical manufacturing industry had until recently been able to compete with China.
However, between 2020 and 2025 the sector, which supports other key British industries including biopharma, automotive and aerospace manufacturing, has seen its contribution to the UK economy fall by 70%.
Additional factors raised by other UK sectors, such as high electricity costs and the rising cost of regulatory compliance, were also cited.
The Manufacturer reported earlier this year that the industry’s decline threatens 95% of manufactured goods.
In May, the Chemical Industry Association’s education and employment policy director Simon Marsh praised the government for centring the sector in its Industrial Strategy but questioned whether its agenda was sufficiently “pro-business” to enable growth.
Miliband and Rubio meeting
New foreign secretary Ed Miliband is set to meet US secretary of state Marco Rubio later today, with Politico reporting that there’s high hopes among allies of him forging strong relations with the administration.
Among topics set to be discussed is the reopening of the Strait of Hormuz. Amid another US-Iran ceasefire and round of peace talks, attention has again turned to the facilitation of commercial shipping through the strait.
Reuters reporting suggests that traffic through the waterway has remained steady this week despite a recent resurgence of missile fire in the region. Eight ships transited the strait yesterday – similar figures to Monday. Prior to this year’s conflict, daily transits would total between 130 and 140 vessels.
The talks coincide with another inflection point in Middle East shipping, as Yemen’s Houthi rebels – an Iranian proxy group – claimed responsibility for an attack on a Saudi Arabian oil tanker in the Red Sea.
Those close to Miliband say this is the second meeting between the two in as many weeks, highlighting strong transatlantic bonds are still a high foreign policy priority despite PM Andy Burnham mentioning the US with little frequency in his first major set piece speech. He hopes to build on the positive impression Burnham’s made on Trump in private calls.
In other trade headlines
· Gatwick Airport beat legal challenges based on climate concerns and now has permission to build a second runway. The airport claims the runway will create 11,000 new jobs and £1.5bn in annual economic activity
· The government has announced new funding for projects that can “strengthen” the UK’s critical mineral supply chain
· The Society of Motor Manufacturers and Traders found that July’s new car registrations were up 11.7% on last year’s figures, driven by electric cars
Yesterday in Trade
· Ireland, which currently holds the revolving presidency of the Council of the EU, has proposed changes to how third-party participants will be determined under Brussels’ Industrial Accelerator Act
· Russia is reportedly expanding the size of its ‘shadow’ Liquified Natural Gas (LNG) fleet amid increasing EU crackdowns
· More information about the Democrat-led legal challenges against the latest round of US tariffs
