Monthly Trade News · July 2026

UK Trade News Roundup: July 2026 — What Changed and What To Do Now

July delivered more regulatory change than most years manage in twelve months. A landmark trade deal with India finally went live. Steel safeguards tightened. The EU ended its low-value parcel exemption. A new US tariff regime replaced the old one. And UK shipping picked up a carbon bill for the first time.

If you move goods in or out of the UK, at least one of these changes touches your costs, your paperwork, or both. Here are the five stories from July that matter most — and exactly what UK exporters and importers need to do about each one.

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1. The UK–India Trade Deal Finally Goes Live — and the Clock Starts Now

On 15 July 2026, the UK and India brought their Comprehensive Economic and Trade Agreement (CETA) into force, alongside a companion agreement on social security, the Double Contribution Convention (DCC). Together, the two deals remove or reduce tariffs on 99% of Indian exports and 90% of UK exports, and they cap social security contributions for workers who move between the two countries for up to five years.

For UK exporters: your paperwork enables your customer's saving

None of this happens automatically. Your Indian customer claims the preferential rate on import — but only if you provide a valid origin declaration proving your goods meet CETA's rules of origin. Register with HMRC to issue Origin Declarations, check each product line against the rules of origin (sufficient UK or India content, or qualifying processing), and brief your customer so they know to claim preference correctly.

Key action: confirm origin status product-by-product before your next shipment, not after a customer's claim gets rejected at the Indian border.

For UK importers: ask your supplier for origin evidence now

If you import from India, request a supplier's declaration or equivalent origin evidence before your next order, and claim preference on your own import declaration using the correct preference document code. Cheaper Indian inputs — textiles, machinery parts, food ingredients — may now be worth a fresh look at your sourcing.

We covered registration, rules of origin and preference claims in full detail in our UK–India trade deal explainer, and our Using the UK–India Trade Agreement course works through live worked examples if you want practice before you rely on it commercially. The official government guidance confirms the full tariff schedules and phasing periods.

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2. US Tariffs Reset Again — Section 301 Replaces the Section 122 Surcharge

At 12:01am US Eastern time on 24 July 2026, the temporary 10% Section 122 import surcharge expired after hitting its 150-day legal limit. The US Trade Representative replaced it immediately with new Section 301 tariffs targeting 60 economies over forced-labour enforcement — the UK among them.

For UK exporters to the US: the rate is stable, but check the mechanics

Confirm your customs broker is filing under the correct Section 301 provision rather than the expired Section 122 code — an entry filed under the old basis risks rejection or delay. If you trade on DDP terms, update your landed cost calculations to reflect the new legal basis. If you resell EU-manufactured goods to US customers, double-check your country-of-origin paperwork: origin, not shipping point, decides the rate.

For UK importers: limited direct effect, but watch your US supply chain

This change doesn't touch goods entering the UK. But if your US-based suppliers source components from higher-tariff economies, expect some of that cost to filter into their pricing over the coming months.

We published a full breakdown of the three US tariff regimes since February in our dedicated US tariffs blog — worth a re-read if you haven't checked your exemption category yet. Our Exporting to the USA: Duties and Tariffs course covers how to build these changes into your pricing with confidence.

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3. The EU Ends Its Low-Value Parcel Exemption — a New Cost for UK Sellers

From 1 July 2026, the European Commission introduced a flat €3 customs duty on every product type within parcels valued under €150 sent from outside the EU, ending decades of duty-free treatment for low-value e-commerce.

For UK exporters and online sellers: work out your true landed cost per SKU

If you sell direct to EU consumers, decide now whether you absorb the €3 per item or pass it on, and check your IOSS registration and pricing reflect the change. Multi-item orders cost more, so review whether bundling several product types into one parcel still makes commercial sense. Delivered Duty Paid (DDP) terms keep the experience seamless for your customer but shift the admin — and the cost — onto you.

For UK importers: no direct impact, but worth knowing

This duty applies only to goods entering the EU, so if you import into the UK from outside the EU, it doesn't touch your costs directly. It's still worth understanding if you also sell into the EU as a secondary channel.

Deciding who owns this cost is fundamentally an Incoterms question. Our Understanding Incoterms 2020 course covers exactly this DDP vs DAP decision for cross-border e-commerce. Full detail on the new duty is available from the European Commission.

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4. UK Steel Safeguards Tighten — With a Late Transitional Lifeline

From 1 July 2026, HMRC cut tariff-free steel quotas by around 60% and introduced a 50% safeguard duty on imports above quota.

For UK importers of steel: check your contract dates and gather evidence now

Review any contracts signed before 14 March 2026, and if you plan to rely on the exemption, assemble your paperwork before the goods arrive — HMRC can request evidence after clearance, and gaps in your file could cost you the exemption retrospectively. Track your quota usage closely: once your country's allocation runs out, the 50% duty applies regardless of the overall global limit.

For UK exporters: watch input costs on steel-heavy products

If you manufacture goods using imported steel, expect input costs to rise, and build this into quotes for export orders placed from now on — particularly anything with a long lead time between quote and delivery.

Getting the right commodity code matters more than ever when quota allocation depends on it. Our Applying Commodity Codes and Classification of Goods course builds the skills to get this right first time. Full detail on the measure is available on GOV.UK.

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5. Shipping Gets Its First Carbon Bill — UK ETS Extends to Maritime

From 1 July 2026, the UK Emissions Trading Scheme extended to domestic maritime transport, covering ships of 5,000 gross tonnes or more travelling between UK ports.

For UK importers and exporters using coastal or short-sea freight: expect gradual cost pass-through

This obligation sits with ship operators, not with you directly. But carriers will factor allowance costs into freight rates over time, particularly on regular UK-to-UK sea legs. Ask your freight forwarder whether a carbon charge has started appearing on quotes yet.

Longer term: treat this as a signal, not a one-off

Government proposals would extend coverage to international voyages from 2028. This month's change is domestic and modest in scope, but it marks the direction of travel for anyone shipping by sea.

If you want a fresh set of eyes on where freight and compliance costs are heading in your supply chain, our Export Consultancy Services team can help. Full compliance guidance is on GOV.UK.

Quick Answers

Do I need to do anything now the UK–India trade deal is live?

Yes, if you trade with India. Exporters need to register with HMRC to issue Origin Declarations and confirm their goods qualify under the rules of origin. Importers should request origin evidence from their Indian suppliers and claim preference correctly on their own import declarations. Neither saving applies automatically.

Does the EU's new parcel duty affect goods I import from the EU into the UK?

No. The €3 duty applies only to parcels entering the EU from outside it. It has no direct effect on UK imports, though it's worth understanding if you also sell into the EU as a secondary sales channel.

Has the US tariff rate on UK exports actually gone up?

For most UK-origin goods, no. The headline rate stays at 10% — what changed is the legal basis, from a temporary Section 122 surcharge to a permanent Section 301 tariff. The practical risk this month is filing under the wrong provision, not a higher bill.