Welcome to the May BABN Policy and Trade Update.

The month of April has seen continued movement of the US trade environment and the progression of US-UK negotiations which hopes to reach a satisfactory deal, providing greater certainty to both economies. UK Chancellor of the Exchequer, Rachel Reeves headed to Washington DC for her first Spring Meetings of the International Monetary Fund (IMF) and to meet US Treasury Secretary Scott Bessent.

Trade and tariff discussions have remained the center-point of transatlantic policy as the US administration stalled the implementation of some higher-level tariffs for 90-days to negotiate a deal. Globally, around 75 countries are pursuing negotiations with the US on related matters; with 17 countries to be said among those with whom the US aim to secure a deal soon. The UK remains at the lowest level of 10%, and continued high-level UK and US government visits illustrate the desire for both sides to find a mutually beneficial arrangement.

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

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Chancellor Visit to Washington D.C.

23-25 April 2025

What happened: The Chancellor headed to DC for her first Spring Meetings at the IMF. During a 3-day visit to the US, the Chancellor held meetings with G7, G20, and IMF counterparts about the changing global economy. She made the case for open trade that provides stability for businesses.

The Chancellor also held discussions with her US counterpart Treasury Secretary Scott Bessent about working together to deepen the UK-US economic partnership through a new trade agreement.



Read more: You can read our full submission here.



UK-US Trade Deal

8 May 2025

What happened: The US and UK announced an agreement to ease some of the recently imposed tariffs on UK exports to the US, and to increase market access for certain food and agricultural products. There was also discussion about a future digital economy agreement in the works.

How BAB responded: We must be clear that this agreement still means that UK exporters to the US face higher costs than before April 2nd as the general 10% 'reciprocal' tariffs remain in place. The agreement provides a foundation, but not a finish line for US-UK trading conditions.



Read more: You can read our full statement here.



Tariff Update

April 2025

Latest tariff developments: here is a breakdown of the latest developments on US tariffs, accurate as of May 7th.

Tariffs currently in force

• China: Tariffs on Chinese imports have escalated significantly. Originally set at 20%, they now total 145% following a series of increases announced in April 2025.
• Steel, Aluminium, Autos: Section 232 tariffs remain unchanged, continuing to apply to a broad range of imports. They are currently at 25% for steel, 10% for aluminium, and 25% for autos and auto parts.
• However this week, Trump announced that autos and auto parts subject to his new 25% Section 232 autos tariffs will no longer be also subject to other 25% tariffs that he has imposed on steel and aluminium or on Canadian and Mexican goods related to the U.S. fentanyl crisis.
• Venezuelan Oil: Tariffs remain in place at 35%.
• Fentanyl-related Products: Imports from non-USMCA countries face a 25% tariff, while Canada and Mexico remain exempt under USMCA.
• 10% baseline tariff: A new 10% "universal" tariff on almost all imports from all countries (in addition to MFN rates).
• Products that are subject to 232 tariffs, such as steel and aluminium, and autos and auto parts, or to be planned 232 tariffs, such as pharmaceuticals and semiconductors, are *exempt* from the additional reciprocal/universal baseline tariffs.
• For products that include US content, the US content is exempt from the new tariffs, as long as the US content is at least 20% of the value of the imported product. E.g. a Korean car that includes a 30% US content will only be tariffed at 70% of the import price.

Tariffs paused or delayed

• While the baseline 10% tariff introduced on April 5th for several trading partners (excluding Canada and Mexico) remains in effect, the additional "discounted reciprocal rate" that Trump had announced for 60 named countries has been delayed for 90 days. The pause is set to expire in early July, pending the outcome of ongoing trade negotiations.
• Electronics Exemption: As of April 11, 2025, smartphones, computers, semiconductors, and other key electronics are exempt from new tariffs.

Tariffs under investigation

• IEEPA & Section 232 Reviews: The administration is actively reviewing additional tariff measures under the International Emergency Economic Powers Act (IEEPA) and Section 232, targeting sectors such as automotive, pharmaceuticals, and rare earths.

Want more information?: On April 10th, BAB held a trade and tariff briefing to outline the latest developments on US-UK trade. The discussion was held prior to the roll back of reciprocal tariffs with China, and 90-day period that was implemented for countries to hold negotiations. You can find the readout here.



Summit on the Future of Energy Security

24-25 April 2025

What it was: The International Energy Agency and UK government convened an internationla Summit on the Future of Energy Security in London on 24-25 April, co-hosted by Ed Miliband and Fatih Birol.

Content included: The Summit looked to examine the geopolitical, technological and economic factors affecting energy security at the national and international level. Key areas included changes in demand, supply and trade of major fuels; the expanding role of electricity in many energy systems; the growth of clean energy technologies and their supply chains; and the availability of the minerals and metals required for many clean energy technologies.

Transatlantic importance: The US administration sent over a Senior White House official to the Summit, and US and UK counterparts had the opportunity to discuss areas of energy collaboration at the Fringes of the conference.



US-UK SME Dialogue

30 April 2025

Overview: On Wednesday 30 April, the office of the US Trade Representative and UK Department for Business and Transport convened the ninth US-UK SME Dialogue in Charlotte, North Carolina. Attendees engaged in conversation with trade experts to learn about the opportunities and challenges that SMEs face in the transatlantic corridor.

Breakdown of the Dialogue: The one-day Dialogue saw the following four panels:

1. Opportunities and obstacles for SMEs in US-UK trade
2. US-UK SME Commercialization of Innovative Technologies
3. Small Business Disaster Mitigation and Recovery Strategies: Future-Proofing Natural Disasters and Pandemics
4. Financing SME exports and start-up

The next Dialogue will be held in the UK.

2025 SelectUSA Investment Summit

11-14 May 2025

Overview: The SelectUSA Investment Summit is the highest profile event in the United States to facilitate business investment by connecting thousands of investors, companies, economic development organizations (EDOs), and industry experts to make deals happen.



The 2025 SelectUSA Investment Summit returned to National Harbor, Maryland this week to establish new connections and opportunities to grow through investing in the United States.

Overview of the Summit:

• Plenary sessions, armchair discussions, panels, academy sessions, pitching sessions, and programs on SelectUSA's traditional agenda.
• Hundreds of EDOs, service providers and industry experts.
• Networking with representatives from 50+ states and territories, companies from 90+ markets, industry experts, and government officials to make investment deals happen.
• 100+ sessions providing actionable instruction on everything from developing a workforce to understanding incentives from industry experts.

Who attends: SelectUSA welcomes investors representing international businesses of all sizes that are seeking to establish or expand operations in the United States, as well as U.S. economic development organizations, representatives from U.S. state and local governments, service providers, and associations facilitating direct investment into the United States.

BABN Transatlantic Conference North Carolina

30 April - 2 May 2025

Overview: The 2025 BABN Transatlantic Conference was held in Charlotte, North Carolina between Wednesday 30th April and Thursday 1st May. It had significant UK and local government participation, including the UK's new Trade Commissioner for North America, Oliver Christian and the Deputy Ambassador at the British Embassy in Washington DC, James Roscoe MVO. the conference also coincided with a UK Parliament delegation to North Carolina.

More information: Annually, the British American Business Network (BABN) brings together members of the 20 chapters throughout the US, UK and Canada for a conference. The purpose is to convene high-level business discussions with senior executives and decision-makers, thought-leaders and government representatives actively involved in bilateral trade, investment and business flows between the UK and US.