It’s been among the most significant years for global trade in recent memory, and as we deliver our last Daily Update newsletter of the year, we’re taking a look back at the major moments and developments from 2025.
The big picture: There was one trade story that loomed over all others this year: US tariffs. From US president Donald Trump’s second inauguration in January, there was a steady drumbeat of tariffs on goods including cars and steel, before the big one in April: ‘Liberation Day’.
List in hand, Trump announced ‘reciprocal’ tariffs on every one of the US’ trading partners. After numerous delays and deals, the US tariff rates on almost every country remain considerably higher than before Trump returned to office.
Perhaps the strongest challenge to the move came from China, which raised its tariff on US goods to 125% at the height of the trade war between the two nations. We covered every development in our US tariff live update, as well as in features throughout the year, including a look at the ongoing legal challenge to the protectionist programme and what some recent reductions in tariffs mean for the policy in 2026.
You can read our full recap of the tariff story in our recent The Year in US Tariffs digest, and there will be plenty more coverage to come on the policy in the New Year.
Good year/bad year: Despite the trade war, it’s been a good year for China’s trade surplus, which ticked over a trillion this month. Exports rose 5.9% year-on-year in November despite a fall in exports to the US, with suggestions from some economists that trans-shipments, where goods are moved through third countries to avoid duties, have helped them to stay buoyant.
It has remained a challenge this year for British SMEs to export to the same degree as their European peers. Trade minister Sir Chris Bryant said in the House of Commons recently that “only one in 10 British businesses exports, compared with three out of 10 French businesses and four out of 10 German businesses”. Bolstering this figure could be an opportunity for both partners – and some ways to achieve this are outlined in the Chartered Institute’s ‘Reimagining UK-EU Trade and Cooperation’ report, which you can read in full here.
How’s stat: £25.5bn – the increase in bilateral trade between the UK and India the UK government expects as a result of the free trade agreement (FTA) struck between the two nations in May. It also expects an extra 0.1% GDP growth per year thanks to the deal. It’s not the only deal the government has struck this year either, as it secured one of the earliest tariff reduction agreements with the US and a newly enhanced trade agreement with South Korea just this month.
Quote of the year: “AI can be regarded as an international public good that benefits humanity. It is crucial to widely engage in international AI cooperation.”
Chinese leader Xi Jinping on the technology that has played an even greater role in trade talks this year, featuring heavily in the UK’s talks with the US on a ‘Tech Prosperity Deal’ earlier this year (though this has recently hit the buffers).
The year in customs: It’s been another eventful year for customs professionals, with tariffs a major consideration as well as new measures implemented under the Windsor Framework and a stream of smaller announcements throughout the months. We’ve taken a look back at the most important changes this week in our The Year in Customs feature.
What else we covered: It wasn’t just customs we’ve been considering again this week, as we reappraised some of the big talking points from the world of export controls and sanctions on Thursday (18 December). There is a boost for the AUKUS pact between the UK, US and Australia, plus a range of sanctions updates on Russia, Belarus and Syria.
We tracked the ongoing ‘reset’ being pursued by the UK government with the EU, with a summit in May producing an agreement to negotiate a new Common Sanitary and Phytosanitary (SPS) Area. Other announcements have included the news this week that the UK will be returning to the Erasmus+ scheme in 2027 and senior cabinet ministers reiterating their desire to achieve a ‘UK-EU youth experience’ scheme.
The government’s Industrial Strategy came under our spotlight at its publication June, when then-business secretary Jonathan Reynolds said the world was entering a “new era” that demanded a “new economic approach”. We also looked at the government’s other strategies, including its dedicated Trade Strategy, which it said would “unlock billions of pounds worth of opportunities for UK exporters”.
True facts: This year was the year some had been waiting for – the return of Oasis to stadiums around the world for the first tour since 2009. The economic impact on the UK economy was considerable, with the University of Salford estimating that it contributed almost £1bn, with £544.9m “remaining within local communities”.
