Trade and international update February 2025

It has been an incredibly busy start to the year on the international front. The Prime Minister made history as the first UK leader to attend the EU Summit since Brexit, joining leaders of the EU27 to discuss defence and security cooperation. Further afield, the Chancellor led the UK’s delegation to Beijing for the first UK-China Economic and Financial Dialogue since 2019. The Secretary of State for Business and Trade also announced he will be visiting India this month to relaunch negotiations for a UK-India Free Trade Agreement.

And that’s just the UK – across the Atlantic, we have seen the US administration get firmly underway with its new approach to trade, capturing global headlines and sparking retaliatory announcements from Canada and Mexico.

US tariffs

We have been closely monitoring POTUS’ announcement of tariffs on Canada, Mexico and China and on steel imports more widely. Members are understandably worried as they look to understand the potential impacts of these tariffs – now partially paused – and any potential incoming UK tariffs on their business. And we have created an explainer to answer some of the most important early questions.

Through officials in DBT, FCDO and the Treasury, we are feeding in the insights of our members to ensure the views and concerns of UK business are fully considered as government look to plan their next steps. BusinessEurope have also begun planning for potential announcements on tariffs levied on EU exports to the US and we will continue to work closely with our sister federations to gather intelligence and ensure the voice of UK business is heard.

EU-UK reset

After meeting with the European Council, the Prime Minister reaffirmed that the UK will not be choosing between the US and the EU – a commitment which is very much welcomed by business.

Though defence was the main focus of the EU Summit he attended, the Prime Minister called for a renewed emphasis on research and development and deeper industrial collaboration, as well as more military collaboration between the UK and the bloc.

Given our shared geopolitical challenges, more collaboration on defence will offer real benefits to both sides. However, business continues to call for stronger cooperation across areas like regulation, mobility, and energy and climate as the countdown begins for May’s EU-UK Summit.  We have been engaging with Cabinet Ministers and government officials on what business would like to see from the reset and we will be working with BusinessEurope to present a pan-European business voice, where future action would boost growth for both economies.

Whether on US tariffs, the EU-UK reset or more, do get in touch with us to share any thoughts you have and barriers you are facing when it comes to international trade.