Despite the August summer lull, international trade has faced a busy week. Export controls and sanctions news continues to roll in, as the UK, EU and US try to sustain pressure on Russia, while Beijing and Washington imposed controls on imports ahead of a meeting between their leaders, expected later this month.
The big picture: The latest Russian sanctions package has dropped, as the UK continues to apply pressure on Moscow over its invasion of Ukraine.
This package is the first announced under new foreign secretary Ed Miliband. The measures target various parts of the Russian military supply chain, including energy exporters and critical mineral importers.
Nineteen new targets are being hit by the package, announced yesterday (6 August), with six new members of the ‘shadow fleet’, four Russian companies and six Russian banks now added to the UK sanctions list.
Miliband said the sanctions “demonstrate the UK’s unwavering commitment to supporting Ukraine and bearing down on those propping up the Kremlin’s aggression.”
The new foreign secretary also travelled to Washington DC this week to meet his US counterpart Marco Rubio, where the two reportedly discussed Ukraine and the need to maintain pressure on Russia. As the Ukrainian-US intelligence relationship also experiences a renaissance, and the Russian economy continues to falter, the UK and its allies are increasingly looking to keep the pressure on Moscow.
Good week/bad week: It’s been a good week for Chinese exporters. The FT reports that Chinese exports jumped by nearly a quarter in July. Data from the General Administration of Customs found that exports rose by 23.9% in US dollar value, as the AI boom continues to fuel a need for Chinese-made technology.
However, on the same topic, it’s turned into a bad week for some advanced tech manufacturers. US President Donald Trump has imposed a 15% tariff on imported goods made using polysilicon, which includes solar panels and semiconductors. The new measure also sets a minimum price on any imports of the affected products, with the White House saying these would “revitalise” the US’ own polysilicon sector.
While China is not named in the executive order, the Chinese embassy in Washington said the decision “seriously disrupts” trade between the two countries. The move is another escalation in tensions over the last few days, as the US claims to be protecting domestic industry while China says Washington is carrying out protectionist policies.
Trump and Chinese counterpart Xi Jinping are due to meet later this month, where it is likely that the escalating export controls will be a point of discussion.
How’s stat? Despite a gloomy economic outlook, Germany’s factory orders rose by 3.1% in June, according to the country’s statistics office. This marks the second monthly increase and beat many economists’ predictions.
Quote of the week: “This is President Trump’s third attempt to illegally impose tariffs that would make life more expensive for American families and small businesses, and this is the third time we're taking the Administration to court over this misuse of power.”
California attorney general Rob Bonta announcing that 25 US states are suing the Trump administration over its latest tariff plan.
The week in export controls: Aside from the latest sanctions package, there have been a few updates on sanctions and export controls around the world.
The Office of Trade Sanctions Implementation (OFSI) issued guidance on complying with sanctions related to banknotes, which applies to any UK-established companies or branches of UK companies that operate overseas. UK traders are largely prohibited from exporting bank notes to both Russia and Belarus under the current regime.
The OFSI also amended its general licence on ‘Russian Oil Exempt Projects’, which was first introduced in January 2025. The update added the Kurdistan Export Pipeline to the list of Exempt Projects.
The Chartered Institute also published a Trade Explained on where to start with export controls compliance, following record fines amid the government’s attempts to enforce controls.
The US announced a number of sanctions related to Syria, North Korea and Iran, with several Russian, Malaysian, Taiwanese and North Korean individuals and companies targeted.
What else we covered: Global Trade Today’s North America Trade Digest covered the latest developments coming out of the US, Canada and Mexico, including the progress of the renewal of the USMCA trade agreement and how elections are set to impact trade.
The government announced changes to its procurement rules, favouring bids that “support local jobs” and plug the UK’s skills gap.
UK traders face a challenging period as the next phase of Trump tariffs kick in, with Chartered Institute expert David Pothecary saying that correct customs classification was “more important than ever”.
True facts: The great Trump tariff refund has benefited one company in particular.
According to the Guardian, the refunds have boosted profits for Japanese gaming giant Nintendo by 53.5%. Even as sales of its Switch console and instalments from its Pokémon and Yoshi franchises were slightly down on last year, the returned funds have proven to be an unexpected windfall.
On the domestic front, according to UK Interactive Entertainment, the British gaming market reached a value of £8.76bn last year. Over £6bn was spent on the software and a slew of new studios have opened over the last few years in places like Dundee, Guildford and Leamington Spa.
