International Trade News for May 2025
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UK–India Free Trade Agreement Finalised
On 6th May 2025, the UK and India concluded a landmark Free Trade Agreement (FTA), marking a significant milestone in bilateral relations. This comprehensive deal aims to eliminate tariffs on 90% of British exports to India, including key sectors like whisky, automotive, and aerospace. The agreement is projected to boost bilateral trade by up to $34 billion annually by 2040. Complete information available in government update.
UK–EU Relations: A New Chapter
On 19th May 2025, the UK and EU signed new agreements aimed at revitalising their post-Brexit relationship. This will include easing trade barriers by reducing border checks and aligning food standards, benefiting UK exporters.
These agreements are expected to foster healthier trade relations between the UK and EU. More details available here.
USA Tariff Changes for China/Hong Kong-Origin Shipments
Effective 14th May 2025, the United States implemented significant changes to import tariffs on goods originating from China and Hong Kong:
- Temporary Tariff Reduction: US import tariffs on Chinese goods have been reduced from 145% to 30% for a 90-day period during ongoing negotiations.
- Reciprocal Trade Measures: China has reduced tariffs on US goods from 125% to 10%.
- Postal Clearance & De Minimis Threshold: Goods from China/Hong Kong are no longer exempt from duty under the $800 de minimis threshold. Postal items valued at or below $800 will incur a 54% duty on value or $100 per item (whichever is higher), increasing to $200 per item from 1st June 2025.
SPOTLIGHT OF THE MONTH: Australia 🇦🇺 & New Zealand 🇳🇿
Australia and New Zealand are hot spots for UK eCommerce growth, with double-digit growth rates. Strong trade ties, tariff-free agreements and English-speaking consumers make them ideal for British brands.
With over 91% internet usage in both countries, the customer base is ready and waiting.
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