In an increasingly complex trade landscape, UK-based importers and exporters face mounting pressures from shifting global alliances, evolving customs frameworks, and regulatory revisions. This week, significant developments have emerged across the HMRC landscape, transatlantic negotiations, and steel sector policy. Whether you’re moving vehicles, pharmaceuticals, or industrial goods, staying on top of these stories is critical to business continuity and opportunity. Here’s a detailed review of the most pressing international trade news from June 6–13, 2025.
UK and US Finalize Bilateral Trade Deal to Ease Automotive and Agricultural Tariffs
The UK government has reached a milestone agreement with the United States aimed at de-escalating trade tensions and revitalizing bilateral commerce. At the heart of the deal is a substantial reduction in automotive tariffs—from a punitive 27.5% to a more manageable 10%—which directly affects up to 100,000 British-made cars exported to the US annually.
This trade deal also includes UK concessions: the country has agreed to cut import duties on over 13,000 tonnes of American beef and to facilitate the inflow of more than 1.4 billion litres of US-produced ethanol. These agricultural elements reflect a balancing act, as the UK aims to lower domestic food prices and secure energy components while maintaining standards.
Though the agreement is not yet enacted into law—pending formal procedures in Westminster and Washington—industry stakeholders have responded positively. The British automotive sector, already under strain from supply chain inflation and declining US sales, stands to benefit most. Trade experts suggest this deal could serve as a platform for a more comprehensive trade pact in the post-Brexit era.
Record Monthly Drop in UK Exports to the US Amid Tariff Clampdown
Disappointingly in international trade news this week, despite the promising trajectory of UK-US trade relations, April 2025 saw the steepest decline in British exports to the United States since official records began in 1997. The Office for National Statistics reported a £2 billion plunge—reflecting the immediate and harsh impact of the US’s new trade tariffs announced earlier in the year.
These protectionist measures, introduced under President Trump’s “Liberation Day” campaign, targeted high-value sectors such as automotive manufacturing, steel, and pharmaceutical goods. UK businesses in those sectors now face duties of up to 25% on products previously traded with minimal friction.
The dramatic slump reveals a critical gap between policy intent and short-term economic consequence. While the UK government pursues remedial agreements (as seen in Story 1), exporters are calling for immediate relief measures and guidance. Many have already begun reassessing their supply chains, with some considering relocation of assembly operations to avoid direct tariff exposure.
Economic analysts warn that unless offset by fast-acting deals or domestic support packages, these new barriers could cause ripple effects throughout the UK’s broader export economy, particularly among small to mid-sized firms with heavy US dependency.
HMRC Introduces Key Tariff and Classification Updates for UK Traders
HM Revenue & Customs (HMRC) released a suite of changes this week affecting the tariff framework and customs procedures that govern UK imports and exports. These revisions impact thousands of transactions daily and require immediate attention from customs brokers, logistics managers, and international trade teams.
Key changes include:
- Pharmaceutical Tariff Suspension Modifications: HMRC adjusted the suspension status on several pharmaceutical commodity codes, revising the applicable duty rates. This directly affects importers sourcing medicinal ingredients or finished drugs under tariff suspensions, especially those reliant on global supply chains in Asia or continental Europe.
- Commodity Code Reclassification: In line with the EU’s integrated tariff systems (TARIC), the UK has restructured several commodity codes to ensure seamless customs processing and classification accuracy. These changes help avoid border clearance delays and potential misdeclarations, both of which can trigger costly penalties or cargo seizures.
- Simplified Procedure Value (SPV) Updates: Changes to the SPV framework, which defines the basis for valuation under customs declarations, could alter how companies assess duty obligations. SPV revisions may benefit some businesses that declare goods based on simplified criteria, although HMRC recommends recalculating existing import cost structures.
HMRC has urged all importers and exporters to review the latest stop press notices and subscribe to email alerts for upcoming rule changes. Stakeholders should also update their digital declaration software, where applicable, to reflect the new codification.
For further information click here: Tariff Stop Press Notice – 09 June 2025 – UK Integrated Online Tariff
Tata Steel Warns UK-US Trade Pact Could Jeopardize £150m in Exports
While the UK-US trade agreement has been broadly welcomed, not all sectors expect a smooth transition. Tata Steel, the largest steel manufacturer in Britain, has issued a stark warning: as much as £150 million in annual exports to the US may be blocked due to strict “melted and poured” origin rules set by Washington.
These rules stipulate that any steel imported into the US must be both melted and poured in the country of origin. Tata, however, plans to shutter its traditional blast furnaces at Port Talbot and instead import semi-finished steel from facilities in India and the Netherlands for final processing in the UK. This move aligns with its strategy to decarbonize operations, but it directly conflicts with the US rulebook.
UK trade officials are currently lobbying the US for a sector-specific exemption or transitional arrangement. Without it, Tata risks losing access to one of its most lucrative overseas markets. As the US remains the second-largest buyer of British steel—valued at over £400 million in total—any disruption could reverberate across Wales’ industrial heartlands and UK steel-dependent sectors like construction and manufacturing.
The incident illustrates the complexity of trade rule harmonization even in the context of friendly bilateral agreements. For UK exporters, the case underscores the necessity of aligning production methods with destination-market compliance rules, not just origin-market regulations.
The current international trade news cycle highlights the duality facing British importers and exporters: while major trade deals and regulatory clarity signal long-term opportunities, short-term disruptions remain an operational reality. Whether due to compliance with foreign protectionist measures, sudden tariff code changes, or shifts in customs value definitions, traders must invest in agile compliance strategies.
Exporter Services can help your business navigate these challenges with a range of operational services and training. For further information click below:
Operational support: Export Consultancy – Exporter Services
Training: Import Export Training Courses UK – Exporter Services
