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Tariffs

Global Trade Tensions Escalate as US Slaps Steel and Aluminium Tariffs on 400 Products

Strategic Insights

— 2 min read

The latest development in the global trade war has seen the US Commerce Department announce the imposition of 50% tariffs on over 400 products made using steel and aluminium, including wind turbines, railcars, and furniture. The move has sparked concerns among exporters, with the Chartered Institute of Export & International Trade warning that the new tariffs will make it harder for UK exporters to plan with confidence. Meanwhile, the British business minister, Jonathan Reynolds, is set to visit China in September to restart talks on trade and economic ties, which have been strained since 2019.

Key Takeaways:

  • The US Commerce Department has imposed 50% tariffs on over 400 products made using steel and aluminium, including wind turbines, railcars, and furniture.
  • The tariffs will affect automotive exhaust systems and electrical steel needed for electric vehicles, raising concerns in the global automotive sector.
  • Baby gear and motorcycles will also face new tariffs, according to Bloomberg.
  • The Chartered Institute of Export & International Trade warns that the new tariffs will make it harder for UK exporters to plan with confidence.
  • British business minister, Jonathan Reynolds, is set to visit China in September to restart talks on trade and economic ties.
  • The UK-China Joint Economic and Trade Commission (JETCO) has not met since 2019, when Boris Johnson's administration suspended bilateral talks following Beijing's assertive response to pro-democracy protests in Hong Kong.
  • The new government has been cautious but open to greater dialogue with China since winning last year's general election.
  • UK inflation rises to 3.8% in the 12 months to July, the largest increase since January 2024.
  • India and China agree to resume trade ties, with efforts ongoing to resolve long-running border disputes in the Himalayas.

Statistics:

  • 407 product categories set to qualify for the 50% tariffs imposed on goods made using steel and aluminium.
  • 50% tariffs to be imposed on products made using steel and aluminium, including wind turbines, railcars, and furniture.
  • 3.8% inflation rise in the UK, the largest increase since January 2024.

Sources:

  • Al Jazeera: "US Commerce Department to impose 50% tariffs on over 400 products made using steel and aluminium."
  • Bloomberg: "US to impose 50% tariffs on baby gear, motorcycles, in separate action."
  • Politico: "UK trade minister to visit China in September for talks on restarting trade and economic ties."
  • Office for National Statistics (ONS): "Consumer Prices Index (CPI) rose 3.8% in the 12 months to July."
  • Guardian: "India and China agree to resume trade ties, with efforts ongoing to resolve long-running border disputes in the Himalayas."
  • Chartered Institute of Export & International Trade: "New tariffs are a real concern, making it harder for UK exporters to plan with confidence."

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