The US led the week’s trade stories again, as it continued to wrestle with China over export controls, slapped new sanctions on Russian oil and, today, stopped trade negotiations with Canada over a TV advert.
The big picture: Today’s major development is US president Donald Trump’s decision to cancel all trade talks with Canada over an advert run by the province of Ontario.
The advert featured snippets of a speech delivered by Ronald Reagan in 1987, in which the former president said that “high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars”, something which can endanger businesses and jobs.
The Ronald Reagan Foundation said it is “reviewing its legal options” over the use of the footage, which it says was done without authorisation, and that the advert “misrepresents” Reagan’s argument.
Trump was rather less measured in his criticism, writing on his Truth Social platform:
“They only did this to interfere with the decision of the US Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE US. Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
Good week/bad week: There have been some green shoots for the US-China trade relationship this week, after turbulence over China’s imposition of new restrictions on rare earth exports. Today’s news of a planned meeting next week between Trump and Chinese leader Xi Jinping in South Korea will be the first between the two leaders since Trump returned to power, while officials from both countries will meet in Malaysia today.
A tougher week for Russian oil giants Rosneft and Lukoil, which have been hit with new US sanctions as Trump became exasperated with Russian president Vladimir Putin’s failure to come to a ceasefire agreement. Reports suggest Indian and Chinese firms could be limiting their Russian oil purchases, at least in the short term, as a result.
How’s stat: 3.8%. That’s the UK inflation rate logged on Wednesday by the Office for National Statistics (ONS). It unexpectedly matched last month’s rate, dodging the anticipated increase, and gave chancellor Rachel Reeves some good news before next month’s Budget.
The week in customs: We looked at ongoing challenges for EU-bound exports in our round-up of the latest news for the food and drink sector, as well as offering an update on the EU Deforestation Regulation (EUDR).
Quote of the week: "If these export controls - whether it's software, engines or other things - happen, it will likely be in coordination with our G7 allies."
An indication from US treasury secretary Scott Bessent that the US will seek support from others to pressure China over its new rare earth export controls, with plans for its own restrictions on the export to China of goods using US software.
What else we covered this week: Yesterday marked the 2025 graduation ceremony for those who have achieved new qualifications with the Chartered Institute of Export & International Trade and the UK Customs Academy. You can read our full write-up of the evening’s events here.
In our latest Trade Insights feature, we explored the collapse of efforts to push through new rules aimed at cutting global emissions from shipping at the International Maritime Organization (IMO).
China’s latest five-year plan came into focus in our China Trade Digest, as the country looks to bolster domestic consumption while doubling down on advanced tech in its bid to sustain growth through to 2030.
The US and Australia struck a new critical minerals deal in a bid to boost supplies beyond those made available by China.
True facts: It’s 80 years to the day since the formal establishment of the United Nations. As well as aiming to “save succeeding generations from the scourge of war”, it also works to support countries to trade through UN Trade and Development (UNCTAD).
