Today’s (10 September) trade headlines include the relaunch of UK-China trade talks in Beijing by new business and trade secretary Peter Kyle, US president Donald Trump pressuring the EU to take tariff action and Ursula von der Leyen’s State of the Union 2025 address.
UK-China trade talks
The Department for Business and Trade (DBT) has announced it's relaunching trade talks with the world’s second largest economy for the first time in seven years, with the UK-China Joint Economic and Trade Commission (JETCO) convening today.
Talks held this week in Beijing are expected to deliver “£1bn in market access over the next five years” according to a government statement, supporting the key sectors targeted with tailored plans under its new Industrial Strategy.
New DBT secretary Peter Kyle, who’s leading the JETCO talks this week, also said that engagement with China will support the UK economy and British workers.
“Serious and strategic engagement with the world’s foremost economic players is what will deliver for working people and businesses across the UK.
“Restarting trade talks with China is an essential tool to put money into people’s pockets as part of the government’s Plan for Change.”
New figures suggest Chinese trade “delivered £2bn in export wins” over the previous financial year, with success in sectors such as retail, education, culture and healthcare.
Kyle will also “raise challenges in the bilateral relationship”, highlighting human rights abuses and unfair market practices. Chinese government repression of pro-democracy protests in Hong Kong led former prime minister, Boris Johnson, to suspend JETCO meetings.
Novel tariff demands
Having slapped tariffs on most trading partners, Trump is now encouraging other nations to apply protectionist measures.
The FT reports that Trump dialled into talks between senior US and EU officials in Washington, in order to push for 100% European tariffs on China and India. The move is intended to crack down on Russia’s war economy, which is reliant on oil sales to both nations.
One US official told the publication:
“The president came on this morning and his view is that the obvious approach here is, let’s all put on dramatic tariffs and keep the tariffs on until the Chinese agree to stop buying the oil. There really aren’t many other places that oil can go.”
Trump’s push for cooperation with the EU follows last week’s display of solidarity between China, India and Russia, when Chinese president Xi Jingping hosted 26 world leaders for a meeting of the Shanghai Cooperation Organisation and a WWII anniversary military parade.
EU-US relations have been strained by the 15% tariffs the US has applied to European imports into the US, and further threats from Trump after the European Commission (EC) fined Google €2.95bn for monopolistic practices in adtech last week.
Similar US anti-trust investigations into the tech firm have led to the same verdict.
State of the EU
A firm rebuke to Trump’s Google tariff threat featured in EC president Ursula von der Leyen’s set-piece address to the European Parliament in Strasbourg this morning, as she said the EU will not compromise on tech regulation.
Other talking points include the EC proposing to suspend its trade agreement with Israel and sanction what it terms “extremist ministers”, amid the ongoing humanitarian crisis in Gaza.
Von der Leyen, a former German defence minister, also proposed using frozen Russian assets to provide a ‘reparations loan’ to Ukraine to fund its war efforts against Russia.
This also followed Poland’s first act of operational engagement in the war, as Polish fighter jets shot down “a dozen or so” Russian drones which it claimed violated its airspace.
Katja Kallas, the EU’s foreign policy chief, described it as “the most serious European airspace violation by Russia since the war began, and indications suggest it was intentional, not accidental”.
Current peace talks have stalled, with Trump’s latest efforts to persuade Russian present, Vladimir Putin, to engage in ceasefire talks failing in August.
Also in the news today
- More recircuiting of Downing Street, as PM Sir Keir Starmer launches a ‘Budget Board’ connecting officials in Number 10 with the Treasury. The Board will be set the task of increasing growth and smoothing relations with UK business
- New French PM, Sebastien Lecornu, enters office today, amid protests at the prospect of spending cuts to transport, education and other services
- Education secretary, Bridget Phillipson, has taken an early lead in the race to become next Labour deputy leader. According to LabourList, she currently has 44 nominations from MPs, followed by former leader of the House of Commons Lucy Powell on 35 and by Clapham and Brixton Hill MP Bell Ribeiro-Addy on eight
Yesterday in trade
- The UK began a campaign to raise awareness about border changes stemming from the EU’s Entry/Exit System (EES), which will enter into force in October
- The Uk’s largest defence conference began yesterday at London’s Excel, hot on the heels of the release of the government’s plan for the sector
- US Treasury Secretary Scott Bessent also warned that tariff refunds are a possibility, as the Supreme Court is set to begin hearing oral arguments on the legality of the measures this year
You can read more here.
