Today marks the start of the biennial Defence and Security Equipment International (DSEI) exhibition at the Excel conference centre in London, hot on the heels of the UK government publishing its Industrial Strategy sectoral plan for the defence sector. The trade show is set to attract protests from anti-arms campaigners, with Israeli arms manufacturers in attendance.
Also today in trade, the US Treasury secretary, Scott Bessent, has warned that the Trump administration may have to issue tariff refunds if the Supreme Court strikes down its ‘Liberation Day’ duties, while there’s a collapsing government in France and a new one in Norway.
But we begin in the UK, where the government is launching a new campaign to raise awareness of upcoming border checks for travellers to the EU.
EES campaign
The British government is launching a new publicity campaign to prepare the public for the introduction of the EU’s Entry/Exit System (EES) – a new automated system requiring travellers to scan their passport and have their fingerprints and photograph taken when crossing into mainland Europe. The EU tried to introduce EES last year, but delayed it due to many member states not having the technology needed to implement it.
Ahead of the delay, British businesses and port operators had raised concerns that teething issues with the new system could cause havoc for the tourism industry, as well as knock-on effects for professional services and supply chains. In January of last year, operators including the Port of Dover delivered written evidence to the European Scrutiny Committee, saying:
“[There is an] existential risk facing critical supply chains, businesses, communities, and the tourism economy of nations on both sides of the Channel from the current lack of appropriate regime for the introduction of the EU EES.”
The UK government provided operators with £10.5m in funding to help them prepare for the new system. With the postponed introduction of the new system now due to take place on 12 October 2025, a government spokesperson said:
“While we have done everything we can to ensure the required infrastructure is in place, anyone who is planning a trip to the European mainland once these checks are introduced will still need to allow more time for their journey as the new EU systems bed in.”
The government warns that checks should take up to two minutes per traveller entering the European mainland, including the Schengen area. This could “lead to longer wait times at border control,” it said.
DSEI opens – protests expected
DSEI, a major defence exhibition, is beginning today in London at the Excel centre. The conference comes shortly after the UK government published a new 10-year plan for the sector, with defence minister John Healey due to speak on Thursday.
It is expected to attract protests, with 51 Israeli arms manufacturers due to exhibit at the four-day conference. Emily Apple, from the Campaign Against Arms Trade (Caat), told the Guardian that the group had “never seen this level of interest in anti-arms trade protests”, with the newspaper predicting that there will be up to a thousand demonstrators present at the show’s opening this morning.
The exhibition begins after Sir Keir Starmer met with the president of the Palestinian Authority, Mahmoud Abbas, yesterday evening.
“They discussed the intolerable situation in Gaza, and the Prime Minister reiterated the need for an urgent solution to end the horrific suffering and famine – starting with an immediate ceasefire, the release of all hostages and a huge surge in humanitarian aid,” a government read-out states.
The Labour government suspended 30 export licences shortly after assuming power last year, due to the “clear risk” of the items being used in breach of international humanitarian law. Campaign groups, including Amnesty International, criticised the government for not going further.
Israel’s Ministry of Defense will not be at the London conference though. It released a statement ahead of the exhibition saying the UK government had “imposed unilateral restrictions on the official participation of Israeli government and military representatives”, Defense Magazine reports.
The DSEI conference comes the day after the Spanish government announced a total arms embargo on Israel.
European security also in focus
Ongoing war in the east of Europe is also likely to be a major theme of the conference.
Following fears that the Trump-led US might withdraw some its support for Ukraine, the Starmer government has taken steps to enhance the UK defence sector and to form a “coalition of the willing” among other European allies. This has resulted in defence investment reaching record highs of £5.4bn in 2024, according to figures from Heligan Group reported in Defense Magazine.
The outlet further notes that SMEs are likely to be a major focus at the conference. Will Ashford-Brown, director of Heligan Strategic Insights, told Defense Magazine that the government has realised that “there's a really fast-growing ecosystem of [SMEs]” that “have really innovative technologies that they are developing” which could support larger manufacturing projects, including aircraft carriers.
Bessent fears US tariff refunds
US Treasury secretary Scott Bessent has said that he is confident that President Trump’s tariff regime will be ruled as legitimate when it reaches the Supreme Court.
However, he added that, were the court to rule in favour of federal court rulings that the tariffs exceed the president’s authority, the Trump administration could have to refund some of the levies paid since the duties were introduced.
If the tariffs are struck down, “we would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” he said in an interview with NBC.
Cheesed off
The tariffs, as they stand, have been bad news for British cheesemakers, according to Politico.
Currently, UK firms have to pay a new 10% duty on top of the US’s preexisting Most Favoured Nation (MFN) rates. The 10% baseline additional tariff was secured as part of the UK-US Economic Prosperity Deal signed earlier this year, and is lower than that faced by other US partners including the EU, which has a 15% baseline rate.
However, the 15% baseline rate secured by the EU last month only applies where there isn’t already a higher MFN rate. This exception doesn’t apply under the UK’s deal.
“That means many UK products with an MFN rate above 5% will now be hit by higher tariffs than competing EU products,” Politico’s Sophie Inge writes. This has affected UK cheese, with some British producers telling Politico that they now fear being undercut by European competitors.
Quote of the day
A government spokesperson has welcomed the new ‘Reimagining UK-EU Trade and Cooperation’ report published by the Chartered Institute of Export & International Trade yesterday.
"We welcome this report from the Chartered Institute. We have reset our relations with European partners to improve the lives of working people - to deliver stronger borders, bring down bills and protect jobs.
"We will continue working with exporters and traders to ensure that their interests are at the heart of any deal with the EU."
You can read the report here.
Also in the news
· Scotland’s First Minister John Swinney is in Scotland for talks with the Trump administration to reduce tariffs on Scotch whisky, the BBC reports
· French prime minister François Bayrou lost a confidence vote, leaving president Macron’s government in peril, according to Politico
· The centre-left Labor Party won the general election in Norway, also in Politico
Yesterday in trade
· The Chartered Institute published its new report on the future of UK-EU trade and cooperation
· New business and trade secretary Peter Kyle got to work in his new role after the cabinet reshuffle
· The government published its new Defence Industrial Strategy
You can all about it here.
