The US hikes tariffs on steel and aluminium to 50%, the EU imposes anti-dumping duties on Chinese tinplate, and US courts weigh in on the validity of Trump’s tariffs – plus other major developments.
Lexology PRO explores some of the most useful articles published on Lexology and externally across key areas of trade and customs over the past several weeks to help businesses stay abreast of key issues.
This key update was produced with the assistance of generative AI.
.jpg?VersionId=4mvt.n6.4Ti8J3bFawuy16aGH27GG3bw)
Shutterstock.com/GreenOak
US
Trade talks between the US and China resumed on 9 June 2025 in London. In May, senior representatives from the two countries met in Switzerland and agreed on a temporary truce on tariffs. The US agreed to lower its “reciprocal tariffs” on Chinese goods from 125% to 10%, while China's retaliatory tariffs on US goods dropped to 10% from 125%. However, since the negotiations, either side since accused the other of breaching the deal.
On 3 June 2025, US President Donald Trump announced increased tariffs on imported steel and aluminium, raising them from 25% to 50%. The changed rate took effect on 4 June 2025. Following a trade agreement between the UK and US on 8 May 2025, duties on UK steel and aluminium remain at 25%.
On 31 May 2025, the US Trade Representative announced a three-month extension of certain tariff exclusions under Section 301, which were set to expire that day. These exclusions apply to specific Chinese products, including graphics processing units, polymers, and chemicals.
On 29 May 2025, US Court of Appeals for the Federal Circuit temporarily stayed a decision issued by the US Court of International Trade (CIT) a day prior. The CIT ruled that the Trump administration’s tariffs were invalid and could not be implemented.
According to the CIT, Trump’s tariffs on Canadian, Mexican, and Chinese goods as well as the “reciprocal tariffs” imposed under the International Emergency Economic Powers Act 1977, exceeded presidential authority and infringed on Congress’s constitutional role in regulating trade. The Federal Circuit’s stay reinstated the tariffs until the appeals court decides whether to grant a longer-term stay pending appeal. The motion to stay was fully briefed as of 9 June 2025.
UK
The UK Department for Business and Trade announced on 6 June 2025 that bilateral trade between the UK and Australia reached AU$36 billion (US$31 billion) in 2024. Both countries reported that since the Australia-UK Free Trade Agreement took effect in May 2023, a substantial portion of traded goods have benefited from preferential tariffs.
China
The Export-Import Bank of China revealed on 6 June 2025 that it invested 460 billion yuan (US$64 billion) worth of loans in foreign trade in the first five months of the year. The bank has introduced programmes to aid small, and medium-sized businesses with foreign trade.
EU
On 5 June 2025, the European Commission launched a new surveillance tool to help protect the EU against surges in imports. The tool aims to prevent harmful trade diversion, which occurs when a large amount of goods that cannot enter other markets due to high tariffs are redirected into the EU. The Commission introduced the tool at the same time that Europe was being flooded with steel diverted from the US (subscription required).
The European Union (EU) imposed anti-dumping duties ranging from 13% to 62% on tinplate imports from China on 28 May 2025. According to an EU investigation, Chinese imports were dumped on the EU market, valued at €2.7 billion (US$3 billion) annually, causing harm to EU producers.
Mexico
On 3 June 2025, Mexico introduced a mandatory automatic notice for exports of specific goods (Spanish language only), including beer, tequila, engine parts, laptops, catalytic converters, and fibreoptic cables. Companies must request permits for exports of covered goods from Mexico’s Ministry of Economy, which will issue permits within 10 business days. The obligations will apply from 7 July 2025.
Global
International economic prospects are weakening due to substantial trade barriers and heightened policy uncertainty, according to an outlook published by the Organisation for Economic Co-operation and Development (OECD) on 3 June 2025. The OECD projects that global growth will slow from 3.3% in 2024 to 2.9% in both 2025 and 2026, with the US, Canada, Mexico, and Canada expected to hit hardest.