Another week, another major story on tariffs. After the US announced fresh 25% tariffs on steel and aluminium imports over the weekend, China is set to deliver on its announcement of retaliatory measures on US energy and machinery this week.
Elsewhere, there is economic data for the UK and EU as well as the convergence of world leaders in Paris for a fresh meeting on the challenges posed by AI.
China responds
US president Donald Trump’s tariffs on Chinese goods receive a response this week, as China implements 15% tariffs on US coal and liquefied natural gas (LNG), as well as a 10% rate on crude oil, trucks and farming machinery.
The tariffs enter force today (10 February) alongside a host of new export controls on rare earth metals.
A total of 25 metals used in electrical and military products and devices will come under the measures. There have also been restrictions on specific US firms, including the owner of brands such as Calvin Klein, as well as an antitrust investigation into Google.
The measures follow the announcement over the weekend of new 25% US tariffs on the import of steel and aluminium, apparently without any exceptions for friendly nations.
AI summit
The next international meeting addressing AI starts today in Paris. The AI Action Summit follows an AI Safety Summit in the UK last year, and expected attendees include Indian prime minister Narendra Modi, German chancellor Olaf Scholz and US vice president JD Vance.
The event follows on from the dramatic emergence of Chinese AI app DeepSeek, which prompted large drops in US tech stocks, most notably that of chipmaker Nvidia. According to Reuters, a range of major Chinese firms are making use of the platform already, as investment in the technology accelerates in the Asian nation.
Among the main themes set out by the summit’s organisers is the need to address the “increased inequality between those who control and those who use” the technology, as well as the concentration of that control among “a small circle of private actors”. The organisers state that the “primary aim” of the event is to develop a global “shared and effective governance framework” for regulating AI.
Latest data reports
The latest raft of economic data for European economies – including the UK – is due this week.
The UK’s Q4 2024 GDP stats will be published on Thursday (14 February) by the Office for National Statistics, while the EU’s GDP numbers for those final three months of 2024 will also be published on Friday (15 February).
Last week, the Bank of England (BoE) cut its growth forecast for the UK in 2025 by half, from 1.5% to 0.75%. The BoE also cut the interest rate from 4.75% to 4.5%. The bank’s governor, Andrew Bailey, said “there is a lot more uncertainty”, while PM Sir Keir Starmer said the revised prediction “just spurs us on” to pursue stronger growth.
Megan Greene, a member of the BoE’s monetary policy committee, is set to speak on how global economic developments are likely to impact the UK economy at the Institute of Directors in London on Wednesday (12 February).
The speech is likely to give further insight into the bank’s thinking on interest rates, while there will be further hints of the EU’s priorities on the topic when Europe’s industrial production figures for December are released on Thursday (13 February).
Other dates for the diary
Monday: Munich Security Report published ahead of Munich Security Conference on Friday
Tuesday: The end of New York Fashion Week
Wednesday: US inflation statistics published
Thursday: A workshop hosted by the Pope in Vatican City on ‘Tax Justice and Solidarity’
Friday: US industrial production numbers published
Saturday: African Union leadership summit
Sunday: BAFTAs ceremony
