New UK prime minister Andy Burnham had a busy first week in office, in addition to announcing several domestic policy measures and putting together his cabinet – more on business and trade below – he faced his first trade challenge as US President Donald Trump announced new tariffs.
The big picture: The first trade challenge for Burnham as UK PM has arrived.
Late last night (23 July), Trump announced the next phase of his tariff regime, only hours before the expiry of temporary measures, hitting the UK and dozens of other countries with rates covering most imports.
The 10%-12.5% duties were proposed last month by the White House, ostensibly for failing to tackle the issue of forced labour in supply chains. UK exports to the US will now face a 10% duty, although some goods might be exempt under the terms of the UK-US Economic Prosperity Deal (EPD) signed last year.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," US Trade Representative (USTR) Jamieson Greer said.
So far many of the US’ trading partners, including the EU, China and Brazil, have protested the decision while neither Downing Street nor Burnham have formally responded.
Good week/bad week: A good week for Jonathan Reynolds who returns to helm Burnham’s expanded Department for Business, Innovation, Science and Trade, a position he was reportedly sad to have left for the chief whip office last year.
As BIST appointments have trickled through during Burnham’s first week in No 10, the new-look department is now taking shape.
Labour leader Anas Sarwar attracted criticism from Holyrood rivals for taking a peerage to join BIST as a trade minister.
Also from the Lords, baroness Liz Lloyd and Baron Sonny Leong joined the department, with Scottish MP Blair McDougall working across both BIST and Department for Energy Security & Net Zero. Earlier in the week (22 July) Katie Dearden and Chris McDonald were also confirmed as BIST ministers.
Another notable trade appointment: after Starmer loyalist Sir Nick Thomas-Symonds’ departure, Hamish Falconer now takes on the ‘Brexit minister’ role, responsible for EU and International Relations.
It’s not been a great week for the shipping industry, as the Houthi rebels followed through on their threat to blockade Saudi shipping through the Strait of Hormuz.
So far, the rebel group has claimed that two oil tankers flagged by Saudi Arabia have been hit. Oil prices have climbed to above US$100 in response to the news, as market fears surge.
How’s stat? £331.5bn: the total value of goods and services trade between the US and UK, in the four quarters to the end of Q4 2024, according to the latest government factsheet.
Quote of the week: “This is further evidence of US President Donald Trump’s determination to reshape global trade around an ‘America First’ agenda, using tariffs as a tool to drive investment into the US and advance wider economic and geopolitical goals.”
Chartered Institute director general Marco Forgione reacting to Trump’s latest round of tariffs, which sustain 10% rates on dozens of trading partners.
The week in customs: Members learned more about packaging regulations on both sides of the Channel with a Lunchtime Learning update on the EU’s Packaging Waste Directive and UK’s Extended Producer Responsibility rules.
What else we covered: Members can also learn more about the future of the UK’s Single Trade Window project, with technical content editor Brian Ward’s write-up of our latest Borders, Ports & Logistics Special Interest Group.
The most recent Global Trade Live webinar also reviewed ongoing disruption in the Middle East, which reached a new inflection point this week as Houthi rebels renewed attacks on shipping in the Red Sea.
We also heard from managing director of Jointine Product Lincoln (Limited) Jane Cullen about her International Trade Award win.
True facts: The bi-annual Farnborough Air Show descended on Hampshire this week, with military and aerospace firms demonstrating their newest planes and gadgets.
News from the event included new defence secretary Wes Streeting’s first official address in office, in which he said he’s apply the same approach to defence as health, “maximising value for money and cutting waste”.
The show’s running rivalry between Boeing and Airbus, saw Boeing announce more new aircraft orders (173 compared to 154), although the combined 300+ total remains lower that the 800 forecast prior to the event.
There was also the unexpected presence of Chinese titanium suppliers attempting to enter defence and aerospace supply chains, per Reuters.
