Steel and aluminium tariffs are back in the news this week, with the US Commerce Department set to raise levies on over 400 products made using the metals, including wind turbines, railcars and furniture.

Also today in trade, there’s higher-than-expected inflation data in the UK, reports of a significant trip to China for the British business minister and a deepening of ties between India and China.

US adds steel and aluminium tariffs to more products

The US Commerce Department yesterday announced that 407 product categories will qualify for the 50% tariffs imposed on goods made using steel and aluminium.

“Today’s action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention – supporting the continued revitalisation of the American steel and aluminium industries,” said Jeffrey Kessler, the undersecretary of commerce for industry and security.

Al Jazeera reports that “automotive exhaust systems and electrical steel needed for electric vehicles” are also now liable to face the high duty rates, raising concern in the global automotive sector.

Baby gear and motorcycles will now also face new tariffs, according to Bloomberg.

Chartered Institute of Export & International Trade director general Marco Forgione said that "these new tariffs are a real concern, making it harder for UK exporters to plan with confidence".

"Every time the goalposts move, it adds cost, delay, and risk for the firms, especially small businesses, trying to do the right thing: invest, grow, and trade.

"The Economic Prosperity Deal agreed in May was a vital first step in resetting the UK-US trading relationship. We now need to accelerate progress toward a modern, flexible quota system at Most Favoured Nation rates, as set out in that deal, and remove tariffs on steel, aluminium, and their derivatives altogether.

"The UK government continues its discussions with US counterparts on these issues, and we are here to support our members, and the wider export community, every step of the way."

The Chartered Institute has a range of training courses, advisory services and member-exclusive benefits designed to help you navigate tariffs. View our Tariffs Hub to explore how we can help you.

Reynolds to visit China

British business and trade secretary Jonathan Reynolds is planning to travel to Beijing in September, sources have told Politico.

The visit will mark the restarting of the UK-China Joint Economic and Trade Commission (JETCO). It will be the first such meeting of the group since 2019, when Boris Johnson’s administration suspended bilateral talks following Beijing’s assertive response to pro-democracy protests in Hong Kong.

The new government has been cautious but open to greater dialogue with China since winning last year’s general election. Reynolds has previously said that “cooperation is possible” on trade.

“It seems to be forgotten that there’s still a lot of tariffs between China and the UK,” Mark Clayton, the chair of the British Chamber of Commerce South China, told Politico, adding that there are “easy wins” to be had.

UK inflation rises

Reynolds and his fellow cabinet ministers will be less positive about today’s inflation figures from the Office for National Statistics (ONS), which are higher than expected.

The ONS Consumer Prices Index (CPI) rose 3.8% in the 12 months to July this year, marking the largest such increase since January 2024.

Chancellor Rachel Reeves has told the BBC that “there’s more to do ease the cost of living”.

India and China agree to resume trade ties

India’s prime minister, Narendra Modi, met Chinese foreign minister Wang Yi in New Delhi yesterday, in a meeting that’s being seen as heralding “warming ties amid [the] Trump-induced geopolitical shake-up,” according to the Guardian.

The ministers said there had been “steady” progress in restoring the two countries’ often tense relationship, with efforts ongoing to resume trade links and resolve long-running border disputes in the Himalayas.

What’s going on at the Chartered Institute

The Chartered Institute is continuing to prepare for a busy autumn of events, including its annual set-piece conference, the Import Export Show, in November.

This week, two new free webinars on the growing influence of artificial intelligence (AI) in global trade have been announced for September and October:

·         UK trade policy and AI: Shaping the future of UK trade – 30 September

·         Beyond the border: How AI is reshaping global supply chains and trade decisions – 7 October

Business and trade professionals can also submit their nominations for this year’s International Trade Awards, with the deadline for entries extended to 7 September.

Also in the trade news today

·         The UK is now allegedly lagging behind the EU on environmental rules and standards, with analysis from the Guardian and the Institute for European Environmental Policy (IEEP) showing that ministers have chosen to “actively go backwards” in some cases

·         The US’ Forced Labor Enforcement Task Force has published an annual update to its strategy for implementing the Uyghur Force Labour Prevention Act – legislation that bids to keep goods made using forced labour out of the US supply chain

·         Investors are warning that major economies are entering an era of “fiscal dominance” in which central banks need to keep interest rates artificially low to offset record government borrowing costs, according to the FT

Yesterday in trade

·         The EU’s goods exports surplus has more than halved since Trump’s tariffs were introduced

·         AI may already be changing how trade is done at a global scale

·         And an important Customs Notice: some planned sanitary and phytosanitary (SPS) checks on EU imports entering Britain have been suspended

You can read more of yesterday’s trade news here.