May was a historic month for UK international trade, with THREE major trade agreements announced alongside important regulatory developments and shipping updates.
Here’s what you need to know:
UK-India Trade Deal Agreed
The UK and India announced a landmark trade agreement – the UK’s most economically significant bilateral deal since leaving the EU.
Key Benefits:
• Tariff Reductions: 90% of Indian tariff lines reduced, 85% becoming fully tariff-free within 10 years
• Spirits: Whisky/gin tariffs halved from 150% to 75%, reducing to 40% by year 10
• Automotive: Tariffs cut from over 100% to 10% under quota
• Other Sectors: Major reductions on cosmetics, medical devices, aerospace, lamb, salmon, electrical machinery
U.S.-UK Tariff Deal
A landmark “Economic Prosperity Deal” was announced – the first major trade pact since US “Liberation Day” tariffs – saving thousands of UK jobs and establishing preferential trading arrangements.
Major Wins for UK Exporters:
• Automotive: Tariffs slashed from 27.5% to 10% for first 100,000 vehicles (saving JLR hundreds of millions annually)
• Steel & Aluminium: Tariffs reduced to zero (from 25%), protecting UK steel industry jobs
• Aerospace: UK aerospace parts can enter US market tariff-free
UK-EU Strategic Partnership Agreement
A comprehensive new agreement with the EU – the UK’s largest trading partner – will reduce costs and complexity for businesses.
Key Trade Benefits:
• SPS Agreement: Removes routine checks on animal and plant products, enabling free flow of goods
• Food Exports: UK can again sell food products to EU markets with ease
• No Time Limit: Permanent agreement providing business certainty
• Reduced red tape and border delays
Other Important Developments
Germany Recognised as Foot-and-Mouth Disease Free
Following the January 2025 FMD outbreak, Germany has been recognized as FMD-free, allowing resumed trade in affected commodities.
Restrictions Lifted For:
• Live ruminants and porcine animals
• Fresh meat (chilled/frozen) from ruminants and porcine
• Meat products, milk, and dairy products
• Hay, straw, and certain animal by-products
Shipping Update: China-Europe Capacity Constraints
Due to the impact of US tariffs, carriers have redirected vessels from European routes back to US routes to meet surging demand.
We advise you book space early for China-Europe shipments and consider alternative routing options where possible.
Looking Ahead to June: US-EU Tariff Deadline Extended
Breaking Development: President Trump has postponed planned 50% tariffs on EU imports from June 1 to July 9, 2025, following negotiations with European Commission President Ursula von der Leyen.
Current Status:
• 25% tariffs on steel, aluminium, and vehicles remain in place
• Trade negotiations ongoing between US and EU
• EU has suspended counter-tariffs on €21 billion of US goods until July 14
• Potential for €95 billion in retaliatory EU tariffs if no deal reached
Why This Matters: The extension provides breathing room for negotiations but maintains uncertainty for EU-US trade. UK businesses benefit from the new UK-US trade deal’s preferential terms while EU competitors face continued tariff threats.
We’ll provide full details in our June roundup.
How We Can Help
We have the expertise and global network to streamline your logistics, reduce costs, and simplify customs compliance.
As we move into June, we remain dedicated to providing you with reliable, cost-effective logistics solutions tailored to your business needs. Our team continuously monitors market developments to help you navigate disruptions and capitalise on opportunities in the coming months.
Please contact us with any questions about these updates or for assistance with your freight requirements.
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