This week’s trade update includes the latest episode in the ongoing tariff saga between the EU and US – as well as customs updates and features and an unexpected guest on a front lawn in Norway.
The big picture: US president Donald Trump has escalated his confrontation with the EU, threatening to slap European imports into the US with 50% tariffs on 1 June, despite high-level talks planned between Washington and Brussels
"Our discussions with them are going nowhere!", said Trump on social media today (23 May), complaining about European trade barriers that he says have led to a trade deficit.
A European Commission (EC) spokesperson declined to comment before a call this afternoon between trade representative Jamieson Greer and EC trade chief Maroš Šefčovič. The two sides had been negotiating during the 'pause' in US tariffs.
Senior figures in Trump’s administration had previously expressed exasperation with the EU, as negotiations loom over relief from tariffs.
The EU’s recently-shared “explanatory note” for talks on the recent tariff measures did not meet the requirements set by Greer on concessions, according to sources speaking to the FT.
Greer and other members of the administration are reportedly frustrated with the EU’s offer to carry out only mutual tariff reductions, rather than making unilateral concessions as some nations have in their talks with the US.
One anonymous US official said:
“Exchanging letters is not real progress. We are still not really getting anywhere.”
The US could also pose the EU’s proposed digital tax as a topic for discussion at negotiations, it has been suggested. Greer is expected to meet Šefčovič in person in France next month, as he bids to help the US reduce its considerable goods trade deficit with the bloc.
The tone of those discussions marks a sharp contrast with the tone between the UK and EU this week, when the long-awaited UK-EU summit yielded agreements on food import checks, defence and fishing. You can read more on that one here, while experts from the Chartered Institute of Export & International Trade took a closer look at the provisions of the deal.
Good week/bad week: It’s been a good week for the UK economy. Despite early jitters over a unexpected rise in interest rates, consumer confidence rose, Reuters economists upgraded their growth predictions and the S&P flash purchasing manager’s index (PMI) showed signs of a mild rebound after ‘awful April’. With the prospect of a global trade war receding, or at least delayed, businesses held more confidence than they did a month ago, according to the flash PMI.
A more troubling week for the post-Brexit Border Control Posts (BCPs) established to carry out sanitary and phytosanitary (SPS) checks on goods entering the UK from the EU. With the UK now planning to remove these checks as part of the week’s deal with the EU, some of these posts could be set to become redundant – or even demolished.
Quote of the week: “With only 15% of small and medium-sized enterprises employers across the UK estimated to be led by women (18% if without employees), there are clearly also barriers with women being able to start a business, let alone begin exporting.”
Marco Forgione, director general of the Chartered Institute, in a letter to exports minister Gareth Thomas on the need for more support for women-led exporters.
The week in customs: A Chartered Institute Special Interest Group session on borders, ports and logistics yielded insights on the new Obligatory Logistics Envelope (ELO) system being introduced by French customs. Members can read a full write-up of Imports Advisory Practice lead Ilona Kawka’s presentation here. Our recap of the recent manufacturing SIG also looks at how those in the sector can export compliantly – you can read that one here.
There was also a notice from the Department of Business and Trade (DBT) of the launch of a new Ministry of Defence (MoD) security approval form.
What else we covered this week: The UK and EU imposed a new round of sanctions and export controls on Russia this week, hitting organisations including the Petersburg Currency Exchange and the Russian Deposit Insurance Agency. There were also renewed restrictions on Russian oil tankers – alongside redoubled calls from the UK for a ceasefire in the war in Ukraine.
The UK ended trade talks with Israel over what foreign secretary David Lammy called the country’s ‘intolerable’ blockade of aid entering the Gaza Strip. It also imposed new sanctions on figures and organisations in Israel – you can read more here.
We had expert insight from the University of Warwick’s head of business innovation, supply chain and trade, Rebecce Wilde, on how the UK could stand to benefit from the global trade realignment sparked by Trump’s tariffs.
True facts: Johan Helberg of Byneset, Norway, had an unexpected guest in his front garden this morning: the 135-metre NCL Salten container ship, which had run aground metres from his home. “I went to the window and was quite astonished to see a big ship,” Helberg said in an interview with the Guardian.
[This article was updated to reflect Trump's 50% tariff threat against EU imports into the US]
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