It’s been another eventful week in global trade, with the US agreeing further tariff reduction deals ahead of an upcoming 1 August deadline.
The UK, which secured its deal with the US back in May, has also been busy, with Sir Keir Starmer signing the landmark free trade agreement with India. HMRC also published a ‘transformation roadmap’ with pledges to enhance cross-border trade efficiency through tech.
The big picture: A flurry of deal-making between Trump and major US trade partners has reduced, but not completely diminished, the impact of tariffs to be levied next week (1 August).
The EU and Japan have both reportedly negotiated 15% baseline rates to evade 25% and 30% duties, respectively.
The EU’s deal has not yet been confirmed, and the bloc has prepared a retaliatory package of up to 30% tariffs on almost €100bn of US goods in case of a no-deal outcome or non-adherence to trade deal terms.
Reports suggest the EU-US agreement on a reduction in the baseline rate for general imports is close, though concerns persist over 50% steel tariffs remaining in place.
Beleaguered Japanese prime minister Shigeru Ishiba, who continued US negotiations after his party lost its majority in Japan upper house in last week’s election, was pleased to secure an auto tariff reductions deal without a quota.
“We were the first in the world to reduce tariffs on cars and auto parts without any quantity restrictions."
Good week/bad week: It’s also been a good week for UK deal-making. Prime minister Sir Keir Starmer welcomed Indian counterpart Narendra Modi to the UK this week, as they both signed May’s trade agreement.
The governments predicts that exports to India will increase 60% once the deal comes into force, adding £4.8bn to UK GDP each year.
Starmer described it as a “landmark deal” and a “major win for Britain”.
“It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country.”
With a shadow cast over the AUKUS trade pact amid the US’ review of the programme, the UK and Australia have reaffirmed the submarine plan with a 50-year bilateral defence treaty.
UK foreign minister David Lammy described the two countries’ relationship as “like no other”, adding that “in our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity”.
It’s been not such a good week for global automotive trade though, with several countries’ sectors reporting challenges amid Trump tariffs.
US carmakers Stellantis, which owns Jeep and Fiat, and General Motors (GM) reported a drop in profits or outright losses in recent financial reports. Stellantis reported a US$2.3bn loss in the first half of 2025, $300m of which could be attributed to tariff disruption. GM claimed Trump tariffs had knocked $1.1bn off its operating income last quarter, with a 32% drop in profits.
In the UK, the Society of Motor Manufacturers and Traders revealed a vehicle manufacturing decline of 12% – the lowest level since 1953, excluding pandemic-era figures. This follows Jaguar Land Rover’s news last week that, despite the UK securing a lower auto tariff rates of 10%, the company will be cutting 500 jobs.
There was a dramatic drop in Japan’s US car exports too, which were down 26.7% in June compared to 2024 figures. Cars account for 28% of the country’s US exports.
How’s stat? 25. That’s the number of trade measures the UK’s Trade Remedy Authority (TRA) has so far retained, having inherited a total of 43 investigations from the EU following Brexit.
In its annual report, the TRA wrote that 30 of the 43 investigations have been completed, with the final 13 set to conclude by 2026.
The body now aims to focus on opening new investigations into unfair international trading practices raised by UK industry.
Quote of the week: “We are on the cusp of a new era. Fossil fuels are running out of road. The sun is rising on a clean energy age.”
That was UN secretary general, António Guterres, taking the optimistic view that the world is turning a corner when it comes to both using and funding high-emission energy sources, as written in the Guardian.
This was backed by the falling cost of renewable energy against fossil fuel alternatives, with nine in 10 renewable projects now cheaper, according to a recent International Energy Agency report.
His comments were made alongside the International Court of Justice’s ruling that nations failing to meet their commitments to tackle climate change could face severe penalties under international law.
Judge Yuji Iwasawa said that failure to meet “stringent obligations” introduced by climate treaties could result in “full reparations to injured states in the form of restitution, compensation and satisfaction provided that the general conditions of the law of state responsibility are met”.
The week in customs: HMRC published a ‘Transformation Roadmap’ this week, outlining how utilising new technology, including AI, will modernise online tax and customs administration.
James Murray, secretary to the treasury, said that the system will be “more automated, more focused on self-service, and better set up to get things right first time”.
The roadmap also contains plans to improve Temporary Admission procedures and the government’s Online Trade Tariff tool.
What else we covered: Ahead of our member-exclusive deforestation webinar in September, the Daily Update spoke to trade expert Joseph Goldsworthy about the EU’s upcoming regulation in this Trade Insights feature.
Sticking with environmental legislation, we have a write-up of yesterday’s Lunchtime Learning webinar examining the progress of the UK’s Carbon Border Adjustment Mechanism.
A recap of the first year of European Commission president Ursula von der Leyen’s second term included the Mercosur deal, China disputes and navigating Trump’s tariffs.
Updates on F680 approvals, Russia sanctions and the terms of the UK’s membership of the EU’s new defence scheme, ‘Safe’, can also be found in this Export Controls Brief.
True facts: World-famous soft drink Coca-Cola was created in 1886 by American pharmacist John Pemberton. The soft drink was not created, as the urban myth often goes, to be used as a cleaning agent, but as a substitute for morphine, to which Pemberton was addicted.
The current US version of the drink is set to become less synthetic, though probably no less addictive, as president Trump’s demand that the company use American-sourced sugar cane to sweeten the drink, rather than High Fructose Corn Syrup, was approved by Coca-Cola this week.
The move comes as part of a broader campaign, led by health secretary Robert F Kennedy, to improve the quality of US food and drink products.
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