GTA Monthly Roundup: June 2025

The Global Trade Alert team documented 414 new trade and industrial policy interventions during June 2025. Five notable trends emerge:

1. Defence spending accelerated across major Western economies. The UK identified the defence sector as a priority in its new Modern Industrial Strategy, further allocating GBP 5 billion to accelerate sector investments. Meanwhile, the European Investment Bank signed a EUR 500 million loan for SMEs in the security and defence supply chain.

2. American import restrictions escalated through substantial tariff increases. Steel and aluminium duties doubled from 25% to 50% for all countries except the UK, which retained preferential rates under the “Economic Prosperity Deal”. Additionally, the Bureau of Industry and Security expanded the tariff coverage to consumer appliances.

3. Washington began to selectively implement bilateral "trade deals" with the UK and China. The Trump Administration partially formalised the "Economic Prosperity Deal" with the UK through an Executive Order, relaxing additional tariffs on UK aerospace products and certain automotive parts whilst establishing preferential vehicle access quotas. However, promised import tariff-rate quota arrangements for UK beef, steel, and aluminium products remain unimplemented. Separately, China granted export licences for rare earth materials following bilateral high-level talks in London. China’s Ministry of Commerce confirmed both sides had finalised framework details, though no official implementation document has been disclosed by either party.

4. Sanctions regimes showed divergent geographical focus. While most jurisdictions concentrate efforts on Russia and Belarus, Washington targeted entities facilitating Iran's oil sales and defence sector operations and Mexican entities for their alleged involvement with illicit opioid trafficking. 

5. Strategic investment initiatives continued across major economies. Beyond defence priorities, the UK's Modern Industrial Strategy called for new incentives in eight priority sectors. China established fresh investment funds targeting semiconductors and artificial intelligence, with Sichuan Province launching a CNY 5 billion Sci-Tech Achievement Application Investment Guidance Fund. Japan's Bank for International Cooperation concluded significant loans for overseas activities.

The GTA Monthly Roundup provides a rapid overview of changes in import barriers, export curbs, subsidies, and related industrial policy measures. It is organised by geography, beginning with the United States, China and the European Union. The final section briefly summarises developments in further regions covered by the GTA. Links to official sources are included in the references.

The United States began the implementation of the “trade deals” signed with the UK and China, announced tariff increases on steel and aluminium imports while expanding coverage to consumer products, and sanctioned several entities. The GTA team documented 30 new interventions during the last four weeks.

The United States issued an Executive Order (EO) to implement the “Economic Prosperity Deal” signed with the United Kingdom. It formalised the preferential treatment arrangements that had been announced in principle in May. The implementation involved the relaxation of the additional tariffs on aerospace products and certain automotive parts of UK origin, as well as an import tariff quota arrangement establishing preferential access for UK vehicles. The EO did not implement the tariff-rate quota arrangements for UK beef and steel and aluminium products, although it authorised the Secretary of Commerce to design the latter. 

The White House increased the Section 232 tariffs on imports of steel and aluminium articles from 25% to 50%. The measure targets all countries except the United Kingdom, which continues to be subject to a 25% rate under the terms of the “Economic Prosperity Deal”. Complementing this broader tariff increase, the Bureau of Industry and Security expanded the scope of steel derivative products subject to these tariffs to include certain consumer and household products containing steel. The newly included products, which face a 50% additional duty, encompass combined refrigerator-freezers, washing machines and dryers, dishwashers, chest and upright freezers, cooking stoves and ovens, food waste disposals, and welded wire racks.

Washington published an Executive Order aimed at expanding the domestic and international competitiveness of drones. The EO includes provisions for government procurement preferences and domestic content requirements designed to strengthen the American drone manufacturing industry. With this measure, the Administration issued instructions to the Defense Department, the Export-Import Bank, and the U.S. International Development Finance Corporation to provide trade finance and export incentives to support the sector.

The United States imposed definitive countervailing and antidumping duties on imports of crystalline silicon PV cells from Cambodia, Malaysia, Thailand and Vietnam. The duties correspond to investigations started in May 2024 and reach up to 3'404%. It also set provisional countervailing duties on Chinese imports of steel fencing. Regarding new investigations, the International Trade Administration published notices initiating parallel antidumping and countervailing investigations on imports of hardwood and decorative plywood from China, Indonesia, and Vietnam. Additionally, the United States launched antidumping and countervailing investigations on imports of L-lysine from China. 

With regards to sanctions, the Treasury Department’s Financial Crimes Enforcement Network sanctioned three Mexican financial entities for their alleged involvement in money laundering in connection with illicit opioid trafficking. Separately, the Department froze the assets of Yemeni entities for alleged involvement in facilitating oil sales and China-based entities for involvement in procurement and transhipment of sensitive machinery for Iran's defence industry. It also imposed financial sanctions on entities owned or controlled by designated persons supporting Iran's nuclear and ballistic missile programmes, and Turkey-based Edisa Dis Ticaret Limited Sirketi for involvement in the procurement and transhipment of sensitive machinery for Iran. Earlier, it had sanctioned 17 Hong Kong-based entities and five United Arab Emirates-based entities operating as front companies on behalf of Iranian entities. 

Following previous similar measures, the Trump Administration further delayed the TikTok ban until 17 September 2025. Until then, the Department of Justice cannot enforce the “Protecting Americans from Foreign Adversary Controlled Applications Act”.

During June 2025, China granted new rare earth export licenses and continued with measures to support its technological self-reliance by expanding domestic economic support policies. The GTA team documented 27 new interventions.

Following the export licensing requirements for rare earth materials introduced in April, the Chinese government reportedly granted several Chinese suppliers licenses to export medium and heavy-rare-earth materials to US automotive manufacturers. Suppliers for General Motors, Ford, and Stellantis received licenses valid for six months. Subsequently, JL MAG Rare-Earth Co announced that it had been granted an export license for magnetic materials, components, and motor rotors. This announcement came one day after Chinese and US negotiators met in London on 9 and 10 June, where both sides reached an agreement in principle on implementing the consensus from previous high-level talks. In late June, MOFCOM confirmed that China and the US have further finalised details of a framework. China would review and approve qualifying export applications for controlled items, while the US would correspondingly cancel restrictive measures against China. No official agreement document has been disclosed by either government.

The Chinese government increased its 2025 import quota for naphtha by 12 million tonnes, bringing the total annual quota to 24 million tonnes. According to the reports, the quotas were granted, among others, to state-owned companies Sinopec and CNOOC.

Multiple ministries adopted a comprehensive guideline to strengthen financial support for consumption. The measures called for increased loan support for service sectors, including wholesale and retail, accommodation and catering, tourism, and education. It also promoted enhanced state aid for the real economy and encouraged qualified consumer industry enterprises to raise funds through listing.

At the subnational level, Sichuan Province established a CNY 5 billion Sci-Tech Achievement Application Investment Guidance Fund, targeting capital injections in key core technologies including artificial intelligence, semiconductors, new energy, and new materials. Earlier in the month, Beijing launched the Chengtong Science and Technology Innovation Investment Fund with an initial scale of CNY 10 billion and a target capital size of CNY 30 billion. The fund focuses on three core areas of new materials, advanced manufacturing, and new generation information technology, aiming to accelerate the application of new technologies to traditional industries.

Shandong Province adopted support measures for the high-quality development of the private economy. The province introduced R&D investment support with subsidies up to 5% of companies' previous year R&D expenditure, capped at CNY 5 million per enterprise, up to CNY 5 million for digital transformation initiatives achieving national-level benchmarks, for technological transformation and equipment renewal projects in industries such as petrochemicals, steel, and automobiles, and up to CNY 10 million support for high-level innovation platforms. In addition, Guangzhou launched a three-year action plan for the intelligent connected new energy vehicle industry. The municipality introduced production incentives, offering up to CNY 500 million for manufacturers building new NEV production lines producing over 100’000 extra vehicles within three years, and up to CNY 100 million for those exceeding 30’000 vehicles in their first full year. Guangzhou's plan also encompassed R&D support for core technologies, including fuel cell systems and smart driving technologies. Further measures included state aid for automotive component production lines up to CNY 100 million per company, and support for battery recycling projects with funding up to CNY 100 million for waste power battery cascade utilisation and remanufacturing initiatives.

China renewed definitive antidumping duties on imports of toluidine from the European Union and the United Kingdom. These duties are the result of a 2012 investigation. Similarly, it also extended the antidumping duties on stainless steel billet and hot-rolled stainless steel plate (coil) imports from the EU, the UK, South Korea and Indonesia.

The EU focused on enhancing industrial competitiveness through strategic support measures whilst tightening restrictions against Russia and Belarus. The GTA team documented 75 new interventions announced by the EU and its member states.

As part of the proposal to ban imports of Russian natural gas, the Commission would prohibit EU operators from providing LNG terminal services to Russian entities. Exceptions are provided for services under contracts concluded before 17 June 2025 that remain unmodified thereafter.

The European Union made two adjustments to its autonomous tariff regimes on the last day of June. First, Brussels temporarily decreased or eliminated import duties on 79 industrial products across 48 six-digit tariff subheadings. Conversely, the same regulation increased import duties on four industrial products, including plastics and rubber. Second, Brussels opened new import tariff-rate quotas for nine products as an update to autonomous import tariff-rate quotas for the second half of 2025. The measure covers specialised chemical and industrial products, such as turbine ring segments. 

The Commission proposed to prohibit imports of Russian natural gas, both pipeline and LNG, starting from 2026. The proposal, which also mandates Member States to develop "national diversification plans", will now go to the European Parliament and Council to continue the adoption process. In addition, Brussels is progressively increasing customs duties on certain fertilisers imported from Russia or Belarus. It announced higher tariffs for 2026-2027and 2027-2028, to eventually reach up to 6.5% plus EUR 430 per tonne from 2028 onwards. The regulation also introduces an additional 50% customs duty on 101 agricultural and industrial goods from these countries. 

In a separate development, the Commission temporarily suspended GSP+ benefits for ethanol imports from Pakistan. The action cited "serious disturbance to the Union ethanol market" caused by Pakistani imports during the 2021-2024 period.

In early June, the EU reinstated annual import tariff-rate quotas for certain Ukrainian agricultural products. The measure reverses a 2022 suspension of restrictions after Russia's invasion.

The EU adopted the new "Clean Industrial Deal State aid Framework", enabling Member States to financially promote clean energy and industrial decarbonisation more effectively. Future state aid measures will be assessed under these special rules, valid until 31 December 2030. The measure replaces the Temporary Crisis and Transition Framework introduced in March 2023.

The Commission recognised 13 critical raw material projects in third countries as "strategic projects" under the Critical Raw Materials Act. These projects span across a range of materials, including graphite, nickel, cobalt, lithium, boron, copper, tungsten, rare earth elements for magnets, and manganese. They will benefit from "coordinated support by the Commission, Member States and financial institutions in the form of facilitating access to finance and contacts with relevant off-takers".

The European Investment Bank signed a EUR 500 million framework loan with Deutsche Bank to support SMEs in the security and defence supply chain. Additionally, the European Investment Fund approved a EUR 138 million guarantee facility with Citadele Bank for Baltic companies and guarantee agreements supporting Spanish SMEs and mid-caps.

Salient national initiatives include Italy’s targeted industrial support measures, with the government approving EUR 200 million for Acciaierie d'Italia to ensure production continuity. Ireland will deploy a EUR 211 million tax credit scheme for the production of unscripted audiovisual programmes with Irish and European cultural content.

The Commission initiated an antidumping investigation concerning imports of 1,4-Butanediol from China, Saudi Arabia, and the United States. The investigation followed a request from INEOS Solvents SA. It also imposed provisional antidumping duties ranging between 95.4% and 120.8% on Chinese imports of choline chloride. 

Brussels implemented procurement restrictions against China under the International Procurement Instrument (IPI). Specifically, it excluded Chinese companies from government purchases of medical devices exceeding EUR 5 million and established procurement restrictions for Chinese bidders for purchases under EUR 5 million.

The GTA documented 282 new interventions announced by jurisdictions outside the US, China, and the European Union in the last four weeks. Significant developments include:

Argentina approved Rincón Mining Pty Ltd's "Proyecto Rincón" as a beneficiary of the Incentive Regime for Large Investments (RIGI). The project received exemptions from internal taxes on undisclosed imported products, import duty exemptions on certain goods, and tax benefits including a 5-year income tax cap of 25%, all effective retroactively from 19 May 2025.

Australia launched both antidumping and anti-subsidy investigations on imports of steel grating from Malaysia on 29 May 2025. 

Bangladesh increased customs duties on several goods whilst simultaneously reducing duties on other products. The changes form part of the new 2025-2026 tariff schedule.

Cambodia halted all fuel and gas imports from Thailand, as announced by Prime Minister Hun Manet. The restriction is adopted following a border dispute between the two countries. 

Canada added 14 Russian entities related to the quantum sector to its sanctions list, whilst prohibiting exports of jet fuel and certain chemicals to Russia. It also banned imports of coal, metals, and other revenue-generating products from Russia. Ottawa initiated both antidumping and anti-subsidy investigations on certain polymer products from China. In response to US trade policies, Canada adjusted its existing counter-tariffs, established new tariff rate quotas, and announced "reciprocal procurement" restrictions targeting US suppliers in government procurement.

The Eurasian Economic Union collectively eliminated import duties on certain processed food products, affecting items such as apricot, pear, and peach purée, with termination dates varying from 2026 to 2028. The Union also increased import duties on printed bed linen made of cotton yarn from 10% to 12%.

India tightened controls on precious metal imports by imposing import licensing requirements on palladium, rhodium, and iridium alloys containing more than 1% gold by weight. A week later, it extended the measure to osmium alloy and ruthenium alloy. New Delhi also initiated an antidumping investigation on imports of methyl methacrylate from China, Thailand, and Saudi Arabia.

Indonesia’s Minister of Trade set an export quota on kratom plants, limiting exports to 25% of total production. In terms of subsidies, the country offered a 50% discount on work-accident insurance contributions for workers in specific industries. 

Iraq imposed an additional 20% customs duty on imported alcoholic beverages and restricted imports of rebar through most land borders. Additionally, Baghdad established an import licensing requirement for urea fertiliser.

Japan’s Bank for International Cooperation concluded a USD 252 million loan agreement with White Eagle Energy Limited to finance an LNG project in Poland. Additionally, JBIC agreed to a USD 240 million loan with UBE C1 Chemicals America Inc for the construction of a new organic solvent production facility in the United States. 

Mexico established new requirements for public procurement bidders in the pharmaceutical and health sectors. Specifically, bidders will now have to invest in domestic production chains, including building factories, laboratories, and warehouses. 

Russia introduced a 5% export duty on certain products and allocated funding for industrial development. National financial institutions, including VEB.RF, signed a RUB 45 billion loan with Three Volcanoes Park LLC and a RUB 24 billion loan to Kama JSC.

Saudi Arabia bolstered its agricultural sector through the Saudi Agricultural Development Fund, which approved loans and credit facilities for agricultural projects and provided additional financial support for food security initiatives.

South Africa unveiled five preferred bidders selected under the “Battery Energy Storage Independent Power Producer Procurement Programme”. The programme prioritises domestic content requirements and local procurement, with preferred bidders expected to invest ZAR 9.5 billion in battery energy storage capacity. 

South Korea’s Export-Import Bank unveiled USD 225 million in export financing, whilst the Korea Trade Insurance Corporation launched a new "Export Package Preferential Financing". The Korea Credit Guarantee Fund also signed a KRW 650 billion financial cooperation agreement for SMEs facing difficulties from "rapidly changing trade environments".

Thailand approved a THB 5.5 billion loan with the State Railway of Thailand, a state-owned enterprise under the jurisdiction of the Ministry of Transport. 

Turkiye exempted certain egg categories from export surcharges, specifically targeting small eggs and organic varieties to enhance competitiveness.

The United Kingdom government shared that it had started the parliamentary process to implement the measures agreed under the "Economic Prosperity Deal” with the United States. Specifically, the creation of a duty-free quota of 13’000 metric tonnes per year for US beef and 1.4 billion litres per year for US ethanol. In terms of industrial policy, London allocated GBP 5 billion to accelerate investments in autonomous and directed energy defence systems and published its Modern Industrial Strategy, calling for both new investment incentives and localisation requirements in public procurement bids in eight priority sectors.

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