Questions about what’s next for the EU summit, particularly in light of a possible Andy Burnham premiership, have been raised.
The potential PM-in-waiting will also face renewed pressure to drill in the North Sea, according to recent reports, and there’s also criticism of the EU’s Entry/Exit System (EES) from European airports.
But to begin, there’s an update on UK steel tariffs.
Steel confirmation
Ahead of changes to steel tariff quotas and out-of-quota duties from both the UK and EU, some clarification has been provided for businesses.
Both parties will be reducing quotas and upping tariffs from 1 July, with Politico reporting that the UK is now lowering its quota reduction – initially slated to fall by 60% - to 51%.
Following engagement with those in affected UK supply chains, 11 products are also being removed from the new quota regime. The changes are set to benefit businesses that require steel products imported from overseas.
Politico also reported that the EU will announce the quota volumes it will allocate to trading partners on Tuesday (30 June).
Chartered Institute customs practice lead Caroline Rowden has outlined what next steps businesses can take to prepare in an exclusive feature that members can read today.
What’s next for the UK-EU Leaders’ Summit?
Following the cancelation of next month’s UK-EU Leaders’ Summit, just days after the date was announced, there’s uncertainty around when the meeting will now be held and the progress of the three agreements intended to be announced at the event.
Politico reports that talks are ongoing on the Common Sanitary and Phytosanitary (SPS) Area deal, designed to facilitate smoother trade for agricultural products, the linkage of both parties’ emissions trading systems and a youth mobility scheme.
EU relations minister Nick Thomas-Symonds, who the publication claims is aiming to remain in his role amid the impending Labour leadership change, has said that the postponement of the summit is not a significant setback.
He told a conference on Tuesday that confirming a date was “a mechanism” designed to concentrate efforts on remaining negotiations. His allies also told Politico that he and Burnham’s team agree on the outline of the three deals.
EES under fire in EU
The head of Europe’s largest membership body for airports has criticised the EU’s new border security measure.
Airports Council International Europe president Stefan Schulte, who also runs the company that owns Frankfurt Airport, said that the EU should “stop pretending… that EES… is working just fine. It is not".
“Passengers are queueing for hours at peak traffic times and I just do not know how we will be able to cope in the coming weeks with the expected increase in traffic," he told an industry event in Prague.
In place since October 2025, ESS requires non-EU travellers to provide biometric data and photographs upon arrival at EU borders. Providing the information has led to lengthy queues at border control and complaints among travellers.
In addition to scuppering tourist plans, the trade community has highlighted that the system is likely to create challenges such as increasing transport costs and supply chain disruption.
A parliamentary research briefing published last month highlighted that operators at UK border points where EES will be in force – the Port of Dover and Eurotunnel terminals – have “expressed concerns about the impact of EES” and its potential to “increase delays”.
Last year, Logistics UK warned that about 25% companies regularly trading goods in the UK have commodities passing through short strait at Dover where EES information will be collected.
“Delays that occur at the border will have a knock-on effect nationwide and could have a significant impact on the country’s ability to trade with the EU in the longer term.”
North Sea oil
Another issue that will arrive in Burnham’s in-tray, should he take the top job, is his position on drilling in the North Sea.
US President Donald Trump put the issue on the agenda in his first public remarks about Starmer’s likely successor.
Saying that he’d heard Burnham is “extremely liberal”, he added that the possible future PM “probably won’t open up the North Sea for oil exploration”.
Burnham would need to decide whether to continue Starmer’s conciliatory approach towards Trump, if selected. Starmer’s approach was often praised, particularly regarding his handling of Trump’s reciprocal tariff threats and subsequent trade deal negotiations. However, the relationship deteriorated amid Trump’s criticism of Starmer’s response to the Iran war.
Trump’s North Sea predictions were accompanied by calls from some UK businesses for Burnham to exploit remaining North Sea oil and gas reserves or face job losses in Scotland and the North-East of England.
The 2024 Labour manifesto committed to banning all future exploration licences, and energy secretary Ed Miliband has reaffirmed his commitment to renewable energy in the face of rising costs stemming from the Iran war.
Elsewhere in the headlines
· Oil prices have fallen to pre-Iran war levels, as Brent Crude hit US$72.48 per barrel this morning
· There’s growing speculation over who Burnham will choose as his new chancellor if and when he becomes PM, although he has said we would stick to incumbent Rachel Reeves’ fiscal rules
Yesterday in trade
· Important changes traders should heed, following HMRC’s 2026 Tax Update
· Government announcements on deforestation legislation and carbon border emissions taxes
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