Category Archives: International trade

Trump’s deal with Putin will have little impact on US diesel prices, experts say

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Analysts say fuel will take weeks to ship and quantity is too small to affect prices, while full deal is unlikely to be met given damage to Russian refineries

Donald Trump’s deal with Vladimir Putin to temporarily lift sanctions on US imports of Russian diesel will have little “meaningful” effect on motorists and businesses in the US and overseas, energy and foreign policy analysts have predicted.

The US president infuriated Volodymyr Zelenskyy when he announced the deal on Friday, writing on Truth Social that the agreement with his Russia counterpart to supply millions of tonnes of diesel was essential to reduce fuel prices in the US, which have soared after his decision to go to war against Iran.

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UK car industry faces ‘difficult trade-off’ between Chinese and EU markets

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Britain under pressure to put tariffs on cheap Chinese vehicle imports ahead of protectionist trade measures

Britain’s car industry is grappling with a “difficult trade-off” between China and Europe, as manufacturers struggle to balance the benefits of both markets ahead of looming trade measures that could restrict UK exports to the EU.

The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US has shut them out almost entirely, and the EU imposes duties of up to 45%.

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Britain in talks with European allies over release of emergency diesel stockpiles amid Trump pressure

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Ministers discuss drawing down EU countries’ reserves after Donald Trump threatens to cut off US supplies

Britain is in talks with European allies over releasing emergency diesel stockpiles after Donald Trump threatened to cut off US supplies of the fuel.

Ministers held calls with counterparts from the European Commission (EC), Germany, France, Italy and Ireland on Thursday to discuss whether to draw down reserves after the Trump administration told Germany and France to release their stockpiles to help ease soaring global energy prices or face a US export ban.

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UK food and drink trade deficit largest since 2000 at £21bn

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Industry leaders call on government to protect homegrown produce in the interest of national security

The gap between Britain’s food and drink exports and imports has neared its highest this century, as a combination of Brexit, war in the Middle East and US tariffs dented deliveries overseas while imports soared.

The UK’s food and drink trade deficit has risen to more than £21bn – the largest since 2000 – in what industry leaders said was a “wake-up call” for the government to protect homegrown produce in the interest of national security.

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UK losing up to £6.5bn a year in EU trade due to mismatched product rules

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IPPR finds failure to align testing standards has forced companies to abandon exporting to EU and is costing costing 0.18% of national income

The UK is losing out on annual exports to the EU that could be worth as much as £6.5bn without a deal with Brussels that allows manufacturers to jettison duplicate product testing.

In the latest attempt to calculate the loss of trade with the EU after Brexit, the IPPR thinktank said many companies have given up selling goods to the EU or set up subsidiaries inside the trade bloc after successive governments failed to secure a mutual recognition agreement that would avoid the extra administration costs.

Motor vehicle and part exports would have been between £2.48bn and £3.42bn higher each year.

Electronic exports could have been between £1.17bn and £1.67bn higher.

Pharmaceutical exports would have had an estimated annual uplift of between £740m and £820m.

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Macron and Carney announce closer France-Canada ties amid Trump tensions

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Two leaders meet in French territory off Canada as Ottawa seeks stronger relations with EU while fighting trade war with US

The leaders of France and Canada have pledged closer ties to grapple with rising geopolitical tensions, climate change and the erosion of democratic values, after ⁠they met in a ⁠French territory off Canada’s Atlantic coast.

The two leaders’ visit to Saint-Pierre ​and Miquelon – the first by a French president since 2014 and the first by a Canadian prime minister – came just weeks ⁠after Donald Trump posted an image showing the islands, as well as all of Canada and other countries in North America, covered by the US flag.

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All smiles in Strasbourg but uncertainty clouds Canada’s EU membership plan

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Although Mark Carney welcomed offer to become bloc’s first associate member, no one seems to know what that means

Mark Carney received a rapturous reception in the European parliament when he gave his speech on Thursday welcoming a proposal for Canada to become the EU’s first-ever associate member.

Politicians queued to shake his hand and take selfies. One described the speech as a historic moment. “Europe has extended a hand, and Canada has taken it,” said the German Green MEP Terry Reintke, who borrowed a Canadian ice hockey shirt for the occasion.

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Trump threatens to stop trading with EU over ‘laughable’ membership offer to Canada

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US president responds as Mark Carney seeks to move closer to Europe and diversify defence ties

Donald Trump has threatened the EU with “serious tariffs” and a halt to trade after the bloc proposed making Canada its first ever associate member – an idea he derided as “laughable”.

The US president said that if the EU moved forward with the plan, Washington could impose “very serious tariffs or stop trading with Europe”. He added: “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.”

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George Osborne calls for UK to rejoin EU customs union and boost trade

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Ex-Tory chancellor says economy has ‘fallen off a cliff’ since Brexit but rejoining union could be ‘quite simple’

The former chancellor George Osborne said Britain’s economy had “fallen off a cliff” since Brexit and that rejoining the European Union’s customs union would be the fastest route to recovery.

Osborne, who was sacked as chancellor by Theresa May after being part of David Cameron’s cabinet at the time of the referendum, said it was important to rebuild links with the EU.

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US bans Canadian dairy, alcohol and motorcycles as trade war escalates

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Trump responds after Canada imposes $20bn in retaliatory tariffs and Canadian PM vows to diversify trade abroad

The US is banning dairy products, most alcoholic beverages and motorcycles from Canada, the White House said on Tuesday, as the trade war between the two neighbors and longtime allies escalates.

The ban will take effect in three weeks and comes after Canada imposed retaliatory tariffs on $20bn in US imports earlier on Tuesday.

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Deadly escalation in Black Sea attacks prompts fears of even higher food prices

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Russian and Ukrainian strikes in July killed more crew than in whole war to that month, preventing grain exports

A summer of hostilities in the Black Sea proved deadly for seafarers, as Russia and Ukraine attacked each other’s ships and port infrastructure, preventing vital grain exports and prompting concerns that the conflict will push global food prices even higher.

More crew were killed in the Black Sea in July than during the entirety of the war before that month as the conflict has intensified, making the body of water the most dangerous in the world for commercial shipping. This is despite the conflict between the US and Iran, with vessels still being targeted in the strait of Hormuz, Red Sea and Gulf of Aden.

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Iran vows to retaliate against countries that cooperate with fresh US sanctions

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Test of US rhetoric will rest on whether nations such as India, China and Russia view economic threats as credible

Tehran has vowed to retaliate against any country that cooperates with the US attempt to impose fresh sanctions against Iran in what the Treasury secretary, Scott Bessent, has billed as “the single greatest financial offensive ever marshalled against an adversary”.

In advance of the US announcement, the United Arab Emirates, Iran’s single biggest trading partner in the Middle East, announced it was ending all trade with Iran, a move Tehran believes was coordinated between Washington and the UAE.

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Trump threatens Iran’s trade partners, as military strikes make way for economic pressure

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US president pivots towards ‘crushing’ economic operation against Iran and its trading partners as military strikes fail to bring Tehran to the table

Donald Trump has announced a new campaign to isolate Iran’s economy, threatening “tremendous economic consequences” on any country that helps or does business with Tehran, a move that could set up a fresh confrontation with China if implemented.

“Today, I am announcing the most crushing economic operation ever taken against any country!” Trump wrote on Truth Social. “Any country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face tremendous economic consequences.”

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‘Mamma mia!’: Trump tariffs refund ignites 53% profit spike at Nintendo

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Profit jump fuelled largely by unknown US refund amount as Japanese video game firm records quarterly sales drop

Nintendo has reported a jump in profits, as the Japanese game maker’s earnings were buoyed up by a long-awaited refund on Donald Trump’s tariffs.

The company said profits surged 53.5% to ¥147.4bn (£694m) over the three months to June, substantially beating expert forecasts for ¥77.8bn.

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China’s economy grows at 4.3%, one of its lowest rates on record

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Worse-than-expected figures for three months to June come amid concerns over lopsided economy

China has posted worse-than-expected growth figures for the three months to June as its economy expanded by just 4.3% – one of its lowest quarterly readings on record.

The rate, which came in under the government’s target of 4.5% to 5%, was one of the weakest since reporting on official quarterly GDP figures began in the early 1990s.

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EU accused of dragging its feet over ban on trade with illegal Israeli settlements

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Foreign ministers will discuss options on Monday but decision on imports is not expected for months

The EU has been accused of dragging its feet over upholding international law, on the eve of a long-awaited debate about banning trade with illegal Israeli settlements.

EU foreign ministers meeting in Brussels on Monday will discuss a possible ban on imports from the settlements, against an ongoing humanitarian crisis in Gaza, where a UN inquiry found Israel to be committing a genocide, and surging state-backed violence in the occupied West Bank, which has killed at least 235 children.

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Oil price falls to pre-Iran war levels as more tankers exit strait of Hormuz

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Stock markets on both sides of Atlantic up as concerns ease over prospect of another inflationary shock

Oil prices have fallen to pre-Iran war levels as more oil tankers exited the strait of Hormuz.

Brent crude, the global benchmark, fell to a low of $72.24 a barrel on Thursday, slightly lower than the day before the US and Israel launched missile attacks on Tehran on 28 February. Prices have fallen more than 20% this month.

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Rejoining customs union would not fix damage caused by Brexit, research finds

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Exclusive: Economists find Brexit caused 12% depression in UK exports, most of which is due to leaving single market

Brexit has depressed UK exports to the EU by 12%, and rejoining the customs union would undo only a fraction of the damage, research shared with the Guardian shows.

With the UK’s future relationship with the bloc likely to feature prominently in a potential Labour leadership contest, the economists John Springford and Anton Spisak, of the Centre for European Reform, provide fresh evidence of the damage caused by exiting.

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Pro-Palestine activists believe ‘sea change’ coming in Labour’s approach to Middle East

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Green surge in local elections and recent polling of Labour members may cause government to toughen stance on Israel

Pro-Palestine activists believe there could be a “sea change” in the Labour party’s approach to the crisis in the Middle East which could result in the government taking a tougher stance on Israel.

Campaigners have pointed to the threat posed to Labour by the Green surge in the local elections, the likely departure of Keir Starmer from No 10, and new polling which shows an appetite among Labour members for a ban on all arms shipments to Israel.

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‘Immediate national priority’: ministers accused of complacency over UK food supply

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Cold storage and logistics body warns food supplies at risk from fuel shortages, cyber attacks and extreme weather

Ministers have been accused of being complacent about the risks to vital supplies of food into the UK amid concerns over fuel shortages, cyber attacks and extreme weather.

The trade body for cold storage and logistics has urged the government to make potential disruption to the UK’s food system an “immediate national priority”.

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