It’s been a quieter week in international trade than normal. Signs are emerging that the US is considering rowing back on its tariff trade war against the rest of the world, while the UK makes its own move toward better European relations.
It’s also campaign season in a lot of crucial areas. UK political parties are making their pitch in the local elections, which includes a number of directly elected mayoralties, while Canada and Australia are in the last stages of their general elections.
The big picture: UK prime minister Sir Keir Starmer hosted European Commission president Ursula von der Leyen for a one-on-one meeting this week. Von der Leyen was attending the 'Future of Energy Summit' this week, along with other leading figures from around the world.
With all the talk of the US, Starmer’s European policy has taken less of the limelight. His meeting with the EC chief came ahead of a crucial 19 May summit between the EU and UK, which is likely to play an important part in Starmer’s “reset” strategy.
The two reportedly talked up a defence deal during their sit down yesterday (24 April), while a statement from von der Leyen confirmed that they also discussed energy and migration issues. A defence deal would likely allow UK companies to participate in the EU defence programme SAFE, but is reportedly being bogged down on issues like access to fishing waters.
Good week/Bad week: A possible good week for traders wanting to avoid a tariff war between the US and China. As the Daily Update reported earlier this week, US president Donald Trump has said that he is open to the idea of a deal with China, although he warned that the number won’t be “zero”. Additionally, Reuters reports that Beijing is starting to grant exemptions to certain goods.
It's been a bad week for the US economy. The latest flash Purchasing Managers’ Index (PMI) showed that US business activity growth slowed to a 16-month low in April. Business expectations also dropped to their lowest level since the pandemic, while prices for goods and services rose sharply, partly fuelled by concerns over tariffs.
How’s stat? 1.6% That’s the rise in retail sales in the first quarter of 2025 according to data from the Office for National Statistics (ONS). This is the largest three-month rise since July 2021. The ONS said that the rise occurred largest in clothing, non-store retail and non-food stores, while falling substantially in the food sector.
The week in customs: Our latest Export Controls and Sanctions Brief set out the new restrictions on exports from the UK of a range of new products, including video game controllers and tech associated with oil and gas exploration.
The government is reviewing the UK’s ‘de minimis’ scheme for imports worth less than £135 after moves to curtail similar customs easements in the US and EU. It comes amid fears of a flood of cheap Chinese goods entering these markets and undercutting domestic producers.
Quote of the week: “The president says lots of things, but the essence of the discussion and where we moved the conversation to, was exactly what I said”
Canadian PM, Mark Carney, confirming reports that Trump again brought up the topic of Canada becoming the 51st US state.
What else we covered this week: The chancellor, Rachel Reeves, said that “we are in a new era of global trade” on visiting Washington this week for the spring conferences of the World Bank and International Monetary Fund – as well as a meeting with senior US officials.
Ahead of a meeting with US treasury secretary, Scott Bessent, Reeves told the BBC’s Faisal Islam that she “understands what president Trump wants to address” regarding trade imbalances – though she noted that “our trading relationship with Europe is arguably even more important”.
Our latest member-exclusive Commodity in Focus feature explored how the US is renewing focus on its access to critical mineral supply chains – a problem that is proving tough to resolve with tariffs alone.
The Department for Business and Trade (DBT) launched its new ‘Made in the UK, Sold to the World’ roadshow this week. The programme of events aims to support SMEs in industries from advanced manufacturing to finance and more to export by connecting them with international buyers.
Chartered Institute international trade legislation senior advisor, Garima Srivastava, answered questions on how free trade agreements (FTAs) can be leveraged to avoid tariffs on your goods in a member-exclusive Ask the Experts piece.
Members could also enjoy a deep dive into the US’ accusations of unfair non-tariff barriers to trade in the EU, which we examined in close detail as negotiations over US ‘reciprocal’ tariffs aimed at levelling the playing field continue.
True facts: It’s not all hostility between the US and China, as this week the Chinese National Space Administration (CNSA) granted US scientists access to moon rock samples collected by a Chinese moon mission in 2020. CNSA chief Shan Zhongde called the samples a "shared treasure for all humanity”.
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