It’s been another major week for US tariffs, as Vietnam concluded a deal on the duties while Japan sweats ahead of a 9 July deadline.
Elsewhere, there was intervention from the UK government on steel, the one year anniversary of Sir Keir Starmer as prime minister and a sustained fall in Chinese manufacturing.
The big picture: The clock kept ticking on tariffs this week, as the 9 July deadline set by the US for countries to offer enough concessions to earn a lower rate came into view.
Japan was among those who seem to be running out of time. The Daily Update reported yesterday (3 July) that the Asian nation – and long-time ally of the US – could face an even higher tariff rate than the one imposed on ‘Liberation Day’ in early April, with Donald Trump threatening a rate of almost 35%. The US president has accused the country of being “spoiled” for refusing to import more American rice.
Vietnam, meanwhile, has finally scored a deal on tariffs, concluding talks with a 20% rate on its exports to the US. It marked a drop from the 46% rate imposed previously. Earlier this week, Canada made its own overtures to the US by dropping its digital services tax plans, in a bid to get tariff talks back on track after a Trump complaint.
You can read our full write-up on the latest developments here.
Good week/bad week: It was a good week for steel in the UK, after the government opted to introduce protections for domestic industry in the sector. UK Steel director general Gareth Stace called the move “the right decision”. The action aims to mitigate against dumping risks identified by the Trade Remedies Authority.
Less positive were the manufacturing numbers for China, where a sub-50 Purchasing Managers’ Index reflected a third successive month of contraction for the sector. It’s a marker perhaps of just how US tariff policy has hit Chinese factories, as well as perhaps the removal of ‘de minimis’ exemptions from duty for low-value imports into the US.
How’s stat: 34.9% – that’s the duty rate being imposed on European brandy by China’s commerce industry after a decision this week. Major EU companies in the sector – including Remy Martin and others – had committed to minimum pricing that will see them allowed lower rates.
Quote of the week: "In a world where trade is becoming more fragmented and businesses are more actively diverting supply chains to maintain resilience, considering these trends is very important for future business planning"
Grace Thompson, UK public affairs lead at the Chartered Institute, on the Global Trade Outlook report published last week by the government. Our analysis of the report, which we published this week, can be accessed here.
The week in customs: Our latest member-exclusive Customs Corner feature included a look at some new regulation entering force this week, as well as a delay to the implementation of the Certificates Exchange System (CERTEX) system.
Other stories we covered this week: Today marks the one-year anniversary of Labour returning to power. The Daily Update spoke to trade policy experts about what the government had achieved over the past year, as well as what they could have done better on.
We spoke to former UBS chief economist, George Magnus, on how real the possibility is of the US dollar one day losing its reserve currency status, and what the consequences of that might be for trade. You can read that one here.
Our experts did a deep-dive on the government’s recent Trade and Industrial Strategies, exploring what their long-term implications could be for traders and businesses across the UK.
In our recent Ask the Experts piece, we addressed some common member queries on Incoterms, proof of exports and documentation for test goods.
The European Commission could be about to exempt some sectors of heavy industry from carbon duties, we reported.
True facts: Japan’s recent tourism boom has quietened a little, after social media predictions of an earthquake related to manga The Future I Saw caused Hong Kong-based travellers to cancel flights to the country in huge numbers. The 1999 comic, which depicts the dreams of author Ryo Tatsuki, describes an earthquake and tsunami hitting Japan in July 2025. Arrivals from Hong Kong have fallen 11% compared with the same time last year.
Member exclusive
