The Week Ahead in International Trade: Reynolds faces steel tariff fallout while stats releases due

The week begins with the fallout from US president Donald Trump’s announcement that he plans to double tariffs on steel to 50%.

Department for Business and Trade (DBT) secretary, Jonathan Reynolds, will be hoping to spare the UK from the brunt of the measures at this week’s Organisation for Economic Co-operation and Development (OECD) ministerial meeting.

There’s also an opportunity to learn more about exporting to South Africa from DBT and the Chartered Institute of Export & International Trade begins celebrations for its 90th anniversary year.

Reynolds on steel

Reynolds will meet US trade representative, Jaimeson Greer, at the OECD ministerial meeting this week. During the talks, Reynolds is expected to push for the US to exempt UK steel from tariffs, as agreed in last month’s UK-US Economic Prosperity Deal (EPD).

This follows Trump’s announcement last week that he will double the duties on imports of the metal from 25% to 50%, beginning Wednesday (4 June).

The tariff spoke follows a US legal challenge to the tariffs Trump introduced under the International Emergency Economic Powers Act (IEEPA), including the 10% baseline rates applied to all imports. Steel tariffs were not introduced via this mechanism, meaning they are unaffected by the challenge and can remain in place.

The Independent reports that UK negotiators and trade officials are keen to speak to their US counterparts as soon as possible, and to establish a timeline for the implementation of the EPD.

Officials speaking to the FT said that the situation is “still unclear” but conceded that “bringing trade deals into force normally takes several months”.

In a statement released over the weekend, UK Steel director general Gareth Stace described the tariff increase as “yet another body blow” to the industry.

Stats releases

After months of tariff mayhem, we’ll have the opportunity to see the impact on US trade, as the nation’s official international trade figures are released on Thursday (5 June).

There’s also key releases from UK business, such as the Society of Motor Manufacturers and Traders (SMMT), which releases its car sales figures on Thursday.

The auto industry is another UK sector granted a tariff reprieve via the EPD, with duties cut from a total of 27.5% to 10% for a quota of 100,000 cars – almost equal to the number of units the UK exports to the US annually. However, as with the steel exemptions, the benefits of the EPD have yet to enter force.

Following last week’s news that apprenticeship reforms are set to prioritise supporting the building sector, the UK construction Purchasing Managers’ Index (PMI) will be released on Thursday. The UK’s manufacturing PMI will be released today.

Exporting to South Africa

Ever considered South Africa as a potential export market, or just looking for new export inspiration?

DBT is hosting a webinar tomorrow (3 June) at 10am, offering insights on which products sell, the major retail operators in the market, how to connect with them and other key contacts, as well as regulatory and legal requirements.

You can sign up for your spot here.

Chartered Institute 90th celebrations

This week, the Chartered Institute will hold the first in a series of events marking its 90th anniversary, with a celebration event held in London on Wednesday (4 June).

As part of the celebrations, we’re launching a new campaign – 'Chartered Institute Trade Champions' – designed to raise awareness of the opportunities for firms in global markets, the economic and social value of trade, and the importance of trade education.

Businesses that want to participate in the campaign, sharing the value that they bring to trade via the Chartered Institute’s external channels, can do so by getting in touch with us at: 90@export.org.uk.