Welcome to the April BABN Policy and Trade Update.

The military operation against Iran has had a direct impact on businesses and consumers in both the U.S. and UK as energy costs rise and the halted transit of oil and goods through the Strait of Hormuz slows global trade. In both the U.S. and UK, this has placed energy policy back in the spotlight, which is an area BAB has consistently advocated for a sensible and pragmatic approach towards on both sides of the Atlantic. On a positive note, we welcome the UK government's decision to overhaul nuclear planning and regulation to reduce costs and accelerate new projects.

We continue to monitor the outcome of the U.S. Supreme Court's decision overturning the reciprocal tariffs introduced under IEEPA. There are several new and ongoing Section 301 and 232 investigations that will likely result in new tariffs later this year. This includes a Section 301 investigation into whether several countries, including the UK, have a ban on the importation of goods produced with forced labor. BAB will providing a submission to the consultation on this topic.

See below for a breakdown of policy and trade headlines and our published works.

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BAB Report on Priorities for U.S. - UK Defense Cooperation

1 April 2026

Overview: BAB published a new report identifying priority areas where U.S.-UK defense cooperation should be strengthened to maintain military advantage, enhance resilience, and leverage the scale, innovation, and investment capacity of U.S. and UK defense companies. The report incorporates contributions by BAB members and focuses on strengthening defense cooperation in four key areas: strengthening the defense industrial base; accelerating development of advanced land, air, and sea technologies; enhancing space and cyber capabilities; and securing resilient energy for defense. Taken together, these priorities provide a practical roadmap for deepening U.S.-UK defense cooperation to meet the realities of the future battlespace. 

Read more: See the report here.

Read more: See our press release here.

UK Releases Steel Strategy

19 March 2026

Overview: The UK published a Steel Strategy, which includes a comprehensive set of measures to secure and enhance the long-term future of UK steelmaking, strengthen national security and position the UK as a world leader in clean, modern steel production. A key part of the strategy is the introduction of a new trade measure to ensure the future of domestic steel production in the face of global overcapacity, given the sector’s central role in critical national infrastructure, defense, and economic resilience. From 1 July 2026, overall quota levels for steel imports will be significantly reduced by 60% compared with the safeguard, and steel coming into the UK above these levels will be subject to a 50% tariff. This measure will apply to imported steel products that can be made in the UK.

Read more: See the strategy here.

Read more: See our statement on the strategy here.

UK Releases Fusion Strategy

16 March 2026

Overview: The UK published a Fusion Strategy, which aims to accelerate growth of the fusion industry, grow supply chains and skills, and position the UK as a global leader in commercial fusion. The strategy builds on the government’s £2.5 billion investment in fusion research and development. As part of the strategy, the government is investing £45 million to fund a fusion‑dedicated AI supercomputer, developed in collaboration between UKAEA and the University of Cambridge. The strategy positions to the UK to attract greater foreign direct investment and UK-based manufacturing to support its clean energy transition.

Read more: Read the strategy here.

UK Launches NPM Consultation

25 March 2026

Overview: The UK Government has launched a consultation on applying the updated Nutrient Profiling Model (NPM) to advertising and promotions restrictions. The proposal would replace the current model used under high fat, salt or sugar (HFSS) regulations with the 2018 version, potentially expanding the range of products subject to restrictions on advertising, promotion, and placement. BAB has prepared a letter to the relevant secretaries of state highlighting concerns around implementation timelines, regulatory stability, and the cumulative impact of regulation on the food and drink industry.

Read more: See the consultation here.



Court of International Trade Orders U.S. IEEPA Tariff Refunds

4 March 2026

Overview: On 4 March, the Court of International Trade (CIT) issued a ruling directing U.S. Customs and Border Protection (CBP) to provide immediate refunds of tariffs imposed under IEEPA. The ruling applied nationwide and extends to all importers on record, regardless of whether they filed a suit. On 6 March, the CIT suspended its ruling after CBP responded stating that it could not immediately remove and refund IEEPA tariffs through the entry-by-entry liquidation and reliquidation process required by the court. Instead, CBP indicated it is developing a new system in its Automated Commercial Environment (ACE) to process refunds, estimating as of 12 March that the ACE upgrades are 70% completed overall.

Implications: The ruling potentially allows importers to receive billions of dollars in refunds even if they did not previously file a suit. However, importers should remain vigilant regarding CBP procedures and potential appeals.



USTR Launches Section 301 Investigation on Forced Labor

12 March 2026

Overview: On 12 March, USTR launched investigations of 60 economies under Section 301(b) of the Trade Act of 1974, including the UK. The investigations will determine whether acts, policies, and practices of each of these economies related to the failure to impose and effectively enforce a ban on the importation of goods produced with forced labor are unreasonable or discriminatory and burden or restrict U.S. commerce. 

Read more: See USTR's press release here.

Thank you for reading this month's Policy and Trade Update. If you have any feedback or comments please contact us.

BAB participates in and offers policy and trade support to the BritishAmerican Business Network, a group of 18 independent trade organisations across North America and the U.K. If you would like to learn more about the network and its activities, please visit our website.



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