A reprieve from US president Donald Trump’s reciprocal tariff rates for most nations was balanced by an escalating Chinese trade war this week.
UK trade negotiations and diplomatic dialogues have borne fruit, with the completion of one long-sought after deal edging closer.
The Chartered Institute of Export & International Trade has US tariff support, including a live event next week, as well as compliance tips on export controls, after HMRC reached heavy settlements with firms that breached the Export Control Order 2008. You can read about that below.
The big picture: As ever, Trump’s tariff edicts dominated headlines this week, with the biggest takeaway his climbdown on reciprocal rates.
The 10-50% levied on a number of trading partners including India, the EU and Japan were paused for 90 days, while China – who introduced a retaliatory rate of 34% on Thursday – is feeling the full force of US measures.
The two countries are now locked in a ratcheting trade war, both levying 125% rates on each other’s imports (at time of writing).
The flat rate of 10% levied on other countries – including the UK – still stands, alongside sector-specific rates on sectors like auto manufacturing and steel.
To learn more about navigating this unprecedented trade landscape, you can join our LinkedIn Live event on US tariffs next Tuesday (15 April) at 1pm to hear from experts who can dissect the issue politically and logistically.
Good week/bad week: As nations scramble to engage in talks to shore up other trading partnerships, the UK has made progress in a couple of ongoing negotiations.
The government announced the fourth round of talks with South Korea was completed last month, with a fifth round already set for this summer. In a statement, the Department for Business and Trade highlighted progress in areas including rules of origin, product-specific rules and a new digital trade chapter.
UK-India trade negotiations, ongoing since 2022, are “nearly there”, with 90% of a free trade deal negotiated, according to a number of reports this week.
It’s been a bad week for the US dollar, which has crashed since the announcement of tariffs by Trump. The dollar slid to a 20-month low against most major partner currencies, with the Euro, Yen, Pound Sterling and Swiss franc surging in comparison. The S&P 500 and Nasdaq also suffered, despite a strong recovery after news of Trump’s 90-day ‘pause’, while US Treasury yields spiked.
How’s stat: 0.5%. That’s the UK’s economic growth rate in February, a pleasant surprise with many economists predicting only 0.1%. A boost in manufacturing and production, which tends to hamper UK growth in contrast to services, was behind the figures.
The Office for National Statistics found that the value of UK goods exports remained stable, while the value of UK imports grew by £2.8bn (5.9%) in February 2025. The UK's trade deficit narrowed in the three months to February, reaching its lowest total trade deficit since the three months to July 2021.
Chancellor Rachel Reeves was pleased but said this was not the time to get “complacent” as the UK grapples with the introduction of US tariffs. She said the government would remain “pragmatic and cool-headed” as it continues to negotiate a US trade deal.
Quote of the week: “Since Brexit, it has been harder for British firms to export around Europe, particularly smaller firms. Many feel shut out of European markets.”
Reeves speaking ahead of the 19 May EU-UK summit, which she said was a chance to “to refresh our relationship and make it easier for businesses to trade”.
The week in customs: Between January and March HMRC agreed settlements totalling £3.7m for breaches of the Export Control Order 2008.
Three companies were fined over the breaches, with one paying a fine worth the lion’s share of that total – a staggering £3,231,762.40 – for the export of military goods without a licence.
What else we covered this week: The first outing of our new member-exclusive look at export controls and sanctions was published this week. Export Control Brief covers recent news and best practice to help you avoid hefty fines, we well-worth a look for those will compliance concerns.
There are sector-specific insights into managing US tariffs from Chartered Institute expert Garima Srivastava, covering auto and advanced manufacturing, aerospace and defence and food and drink.
Our semi-regular feature State of Freight dove into how shipping is responding to Trump’s tariffs
The Organization for Women in International Trade UK held a webinar on digital and finance solutions to support female-led SMEs. The Chartered Institute’s Grace Thompson shared insights, alongside other experts from the worlds of finance and tech.
True facts: Tariffs are a concept almost as old as trade, with import taxes recorded in a number on old and illustrious civilisations.
Clay tablets from the Mesopotamian city of Lagash record 10% goods taxes, which many speculate extended to imports in times of economic stress.
Thousands of years later the main Athenian port of Piraeus levied a 1% tax on goods moving into the city state – to quote the UK’s chancellor again this week, “that’d be nice”.
Despite its short history, the world’s newest empire still has a long history of taxing trade, dating back further that its 47th president. You can read about that here.
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