The European Commission has proposed halving the volume of steel imports entering the EU duty-free - from 30.5 million to 18.3 million tonnes annually - and doubling tariffs on imports exceeding that quota to 50%. The move, announced by EC president Ursula van den Leyen, aims to protect the struggling European steel industry, which operates at just 67 percent capacity and faces heavy competition from cheap, subsidised steel, especially from China. Global steel overcapacity, now at 600 million tonnes, is projected to exceed 720 million next year, pressurising European producers and leading to the loss of 18,000 jobs across the bloc. The new measures, including a ‘melt and pour’ rule to trace steel origins, are designed to curb tariff circumvention and lift EU production to 80% capacity use. While the plan also affects US imports, Brussels hopes for cooperation with Washington to address global surpluses. The proposal now awaits approval from EU member states and the European Parliament.

President Luiz Inácio Lula da Silva has urged Donald Trump to remove the 40% tariff recently imposed on Brazilian imports. The two leaders held a thirty-minute phone conversation, exchanging direct contact numbers and discussing trade and economic cooperation. Lula reiterated his invitation for Trump to attend the upcoming climate summit in Belém and said that Brazil remains one of the few G20 nations with which the United States enjoys a trade surplus. Trump described the discussion as positive, noting plans for future meetings in both countries. The tariffs, added to an earlier 10% duty, were justified by the Trump administration as a response to Brazil’s internal political instability following former president Jair Bolsonaro’s conviction for attempting a coup. Despite tensions, the leaders’ dialogue signals an effort to preserve economic ties and foster mutual understanding between the Western Hemisphere’s two largest democracies.

Donald Trump is intensifying pressure on the EU and other nations over digital regulations and taxes which he argues unfairly target American technology companies. Threatening new tariffs and restrictions on exports, he has warned that countries with policies he deems discriminatory will face consequences unless they roll back their measures. At the heart of the dispute are the EU’s Digital Services Act and Digital Markets Act, designed to curb monopolistic practices and require platforms to tackle harmful content, but viewed by Washington as an attack on US firms like Google and Meta. The standoff raises tensions at a delicate stage in transatlantic trade talks, with many issues unresolved despite a preliminary agreement. Analysts caution that Europe is unlikely to reverse rules which represent long-sought goals of digital sovereignty, while Trump’s negotiating tactic is seen as ‘keep on pushing, keep on demanding: nothing is ever fully agreed upon.’

Donald Trump has extended the trade truce with China by another ninety days, narrowly avoiding a major escalation between the world’s two largest economies. The announcement came just hours before the previous deadline was to expire, averting a spike in US tariffs on Chinese imports and likely retaliatory action from Beijing. Both governments confirmed the extension, maintaining existing terms while allowing more time for negotiation. This delay is seen as a temporary relief for global markets and US companies which depend on trade with China. Earlier trade disputes saw tariffs soar to triple digits, severely disrupting international commerce and sparking volatility in financial markets. Although current tariff levels remain high, they are significantly lower than the peak rates imposed in May. Talks between Washington and Beijing continue, with hopes for a more permanent resolution and a possible summit between Trump and Xi Jinping later this year. However, key issues remain unresolved.

US-India relations entered a turbulent phase when Donald Trump tore into India for its continued oil imports from Russia and slow progress on trade negotiations. Formerly close to Prime Minister Narendra Modi, Trump, accusing India of funding Russia’s war in Ukraine, has vowed to raise tariffs on Indian exports to 50%. India regards its Russian energy imports as economically necessary; it has a longstanding relationship with Russia and is among the largest importers of Russian oil. Modi’s government has so far resisted Trump’s pressure, particularly over opening up US access to the heavily protected agriculture and dairy sectors. In response to Trump’s belligerent language, Modi has called on citizens to buy only Indian-made goods, leading to greater economic self-reliance. Political commentators note that it will be very difficult for Modi to give any large concessions in a trade deal, given the growing anger within India towards Trump.

Donald Trump has paused a proposed 50% tariff on EU goods, extending the negotiation deadline to 9 July after a phone call with EC president Ursula von der Leyen. She requested more time to reach a deal, which Trump agreed to, calling the EU ‘willing to negotiate’. While both sides seek a resolution, the USA remains firm on maintaining a 10% base tariff, rejecting the EU’s recent offer to eliminate industrial tariffs and boost cooperation in AI and energy. Trump’s stance stems from concerns over the EU’s significant trade surplus and regulatory barriers. Meanwhile, the EU has approved retaliatory tariffs worth billions, set to begin on 14 July if talks fail. The escalating tensions risk sparking a costly trade war, which the IMF warns could shrink GDP on both sides. EU and US officials are set to meet next month in Paris to seek resolution. In preparation for these, the EU has requested firms to give details of their dealings with US companies: see

A federal court has blocked Donald Trump’s broad use of tariffs, ruling that the Constitution grants Congress - not the president - authority to regulate foreign commerce. The decision challenges Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping import taxes, a cornerstone of his ‘America First’ agenda. Two lawsuits, one by small businesses and another by a coalition of US states, sparked the ruling. The court also blocked tariffs on China, Mexico, and Canada, imposed under immigration and drug control claims. However, tariffs on specific goods like steel and cars were not addressed. Markets responded positively, with global stocks rising and the dollar strengthening. If the ruling is upheld, affected businesses may receive tariff refunds with interest. Legal experts suggest the decision may constrain executive power over trade, sending a strong constitutional message. The White House has vowed to appeal, calling the ruling a judicial overreach. In another development, the Trump administration has asked the supreme court to overturn a judge’s ban on deporting migrants without giving them a chance to seek legal relief: see Breaking news: the ban on tariffs has been temporarily paused by an appeal court.

Donald Trump is poised to announce a significant new trade agreement between the USA and the United Kingdom, marking a key step forward in post-Brexit trade relations. A ‘heads of terms agreement’ - essentially a preliminary framework - has been reached, laying the groundwork for a full trade deal. The announcement, expected from the Oval Office, follows weeks of high-level discussions amid global trade tensions. While the deal’s full details are pending, it is anticipated to address tariff reductions, particularly on UK steel and car exports, sectors hit hard by US tariffs. The British pound rose 0.4% against the US dollar following reports of the agreement. The deal comes as the USA also continues trade negotiations with other major economies, including China, South Korea, and Japan. UK officials have stressed the importance of balancing strong transatlantic ties with ongoing EU relations. The agreement is seen as a boost for UK industry and a strategic move to strengthen bilateral economic partnerships in an uncertain global climate. See also

Britain and the EU are set to formalise a new strategic partnership to strengthen trade ties and present a united front against Donald Trump's global tariff agenda. A leaked draft declaration, dated 25 April, affirms a mutual commitment to ‘free and open trade’ and to maintaining global economic stability. The agreement will be signed at a UK-EU summit on 19 May, marking a key moment in post-Brexit relations. Meanwhile, the Government is engaged in separate negotiations with the USA, aiming to soften the impact of existing tariffs - currently 10% on UK goods and 20% on EU exports. US press secretary Karoline Leavitt said that talks are ‘moving in a very positive way’. Rachel Reeves met with US treasury secretary Scott Besent last week, emphasising that both UK-EU and UK-US trade relationships are vital. Despite Trump reportedly viewing the 10% UK tariff as a minimum, British officials remain optimistic about securing a mutually beneficial deal.

Mark Carney’s Liberal Party has secured re-election in Canada, staging a dramatic comeback. Though the Liberals have not won a clear majority, their lead over the Conservatives is decisive. Carney credited the turnaround to a rise in Canadian nationalism sparked by Donald Trump’s aggressive rhetoric and tariff threats, including calls for Canada to become America’s 51st state. These actions galvanised support for the Liberals after the slump which followed former PM Justin Trudeau’s resignation amid economic discontent. Conservative leader Pierre Poilievre, who had echoed Trump’s anti-‘woke’ rhetoric, even lost his own parliamentary seat. Carney warned that hard decisions lie ahead:  Canada must now prepare to reduce its economic dependence on the USA while navigating a tense bilateral relationship. The election took place hours after eleven people were killed by a vehicle attack at a Vancouver street fair: see