GTA Monthly Roundup: May 2025

The Global Trade Alert team documented 427 new trade and industrial policy interventions during the last four weeks. These trends emerge:

• First US "trade deals" materialise. The Trump Administration concluded bilateral agreements with the United Kingdom and China in the first half of May. The UK deal established framework commitments for future implementation, while China's one immediately rolled trade restrictions back to early April 2025 levels.

• More countries react to the US tariffs. Beyond bilateral deals, trading partners implemented measures to defend their economies from US trade policies. The EU launched a new public consultation on countermeasures following the US “reciprocal tariffs” and automobile tariffs, Thailand approved a package to enhance entrepreneurs' competitiveness amid global trade tensions, and South Korea allocated KRW 13.8 trillion for trade risk response alone. 

• Sanctions proliferation accelerates. The EU and UK expanded their sanctions regimes against Russia, focusing on freezing funds and maritime restrictions. Meanwhile, the US focused on Iranian oil trade networks, sanctioning entities across China, Hong Kong, the Seychelles, and Singapore.

• Investment incentives gain momentum. Countries implemented substantial financial programmes to attract investment. China launched a CNY 5 billion semiconductor fund in Shenzhen, Mexico introduced tax incentives for its new “Economic Development Poles for Welfare", India expanded semiconductor manufacturing capabilities, and Vietnam published its “Action Plan for Private Economic Development”.

• Trade defence actions against China intensify. The US imposed provisional antidumping and countervailing duties on several Chinese imports, ranging from glass products to active node materials. The EU initiated antidumping investigations on pneumatic tyres, imposed definitive antidumping duties on flat-rolled products of iron or non-alloy steel, whilst Canada launched similar actions on steel strapping.

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 expanded its trade policy in May 2025, announcing “trade deals” with the UK and China and enacting policies that impacted multiple economic sectors. The GTA team documented 47 new interventions during the last four weeks.

The Bureau of Industry and Security (BIS) announced the rescission of the "AI Diffusion Rule", which had imposed export licensing requirements on advanced computing chips, AI model weights, and data centre operations outside the US. BIS also identified Huawei Ascend AI chips (910B, 910C, and 910D) as items likely developed in violation of US export controls, warning that parties using them could face enforcement action.

Furthermore, the Trump Administration issued an Executive Order directing federal agencies to review export controls on pharmaceutical drugs and precursor materials. The Secretary of Commerce is directed to consider "all necessary action" regarding exports that may be fuelling global price discrimination.

On 28 May 2025, the US Court of International Trade unanimously struck down President Trump's "Liberation Day” reciprocal tariffs and “Trafficking Tariffs” targeting imports from China, Mexico, and Canada. The Court ruled that the President had exceeded his executive authority under the International Emergency Economic Powers Act (IEEPA) and violated constitutional limits. The following day, the US Court of Appeals for the Federal Circuit granted an administrative stay that temporarily keeps the tariffs in effect while the Trump administration appeals the decision, with briefing scheduled through early June 2025.

Following the bilateral US-China Economic and Trade Meeting in Geneva on 12 May 2025, the Trump Administration suspended the 125% “reciprocal tariff” on Chinese imports for an initial 90-day period. During this suspension, the tariff on applicable Chinese goods was reduced to a baseline rate of 10%. Moreover, the White House reduced the ad-valorem duties on low-value imports from China from 120% to 54% and maintained the specific per-item postal duty of USD 100.

On 8 May 2025, the US announced the “Economic Prosperity Deal” with the United Kingdom. Under the agreement, the US agreed to establish several import tariff-rate quotas for British products. This includes a duty-free quota of 13’000 MT for beef, of 100’000 vehicles with a preferential 10% tariff, and tariff-rate quotas for steel and aluminium products at MFN rates. None of these future commitments were officially implemented at the time of writing.

In other developments, an Executive Order directed agencies to facilitate the importation of drugs from developed countries. It tasks the Secretary of Health and Human Services to evaluate importing drugs that pose no additional public health risk. Separately, the Department of Commerce initiated a Section 232 investigation into commercial aircraft and jet engines, with potential import tariffs and quotas to follow based on national security findings.

The US Administration modified the Section 232 tariff regime on imported automobile parts to introduce tax credits (offsets) of up to 3.75% for manufacturers assembling vehicles domestically. The measure aims to reduce companies’ tariff burden on imported parts based on their domestic assembly operations. The tax credits will be reduced in May 2026 to 2.5%.

The House of Representatives passed the “One Big Beautiful Bill Act”. The bill allocates federal funding to strategic sectors linked to national defence and industrial capacity. This includes support for US shipbuilding, integrated air and missile defence systems, munitions and the defence supply chain. Additionally, the bill proposes the termination of several clean energy tax credits and related programmes originally supported under Biden’s  “Inflation Reduction Act”.

The Treasury Department imposed sanctions on entities from China, Hong Kong, Seychelles, and Singapore allegedly involved in supporting Iran's oil trade. These entities were added to the Office of Foreign Assets Control's Specially Designated Nationals List, blocking their properties and prohibiting US persons from transacting with them.

BIS issued two other documents regarding chips use and due diligence. The first warned against using Chinese advanced chips, particularly Huawei's Ascend 910B/C/D models. The second provides practical compliance and due diligence tools to prevent the illegal diversion of advanced computing chips.

The International Trade Administration imposed provisional antidumping duties on thermoformed moulded fibre products from China and Vietnam, and ceramic abrasive grains from China. It also imposed provisional countervailing duties on float glass products, erythritol and active node materials from China and other countries. Furthermore, ITA raised the definitive countervailing duties on imports of aluminium containers, pans, trays, and lids from China.

China took reciprocal steps to de-escalate trade tensions with the United States whilst simultaneously expanding domestic support measures across multiple sectors. The GTA team documented 31 new interventions.

After the US-China economic and trade negotiations in Geneva, China modified its export control regime targeting American companies. The Ministry of Commerce (MOFCOM) temporarily suspended the addition of 17 US companies to China's “Unreliable Entity List”. The measure effectively lifts the ban on these entities engaging in China-related export activities for 90 days. Concurrently, the Ministry announced the temporary suspension of export control restrictions on 28 US companies that had been placed on China's “Dual-Use Export Control List”. During the suspension period, these companies can apply for export licences, with the Ministry to review applications in accordance with existing regulations. 

China de-escalated measures to ease import duties applicable to US imports. It temporarily decreased additional duties in response to the “reciprocal tariffs” from 125% to 10% for an initial 90-day period. 

Beijing also temporarily suspended import restrictions on 17 US defence companies that had previously been added to the Unreliable Entity List. This suspension allows these entities to resume import activities with Chinese partners, subject to standard regulatory procedures.

Several Chinese ministries adopted guidelines on strengthening sci-tech innovation and self-reliance, calling for additional financial support to accelerate the establishment of a robust financial system for scientific and technological development. A "Special Action Plan for Accelerating the Development of Digital Supply Chain" called for state aid to cultivate 100 leading digital supply chain companies and promote digital transformation across the agricultural, manufacturing, wholesale, and retail sectors.

The China Development Bank granted CNY 20 billion for Shaanxi Coal Group's Yulin Chemical Company Phase II project, aimed at developing coal-to-chemicals production capabilities and advancing industrial transformation in the energy sector. China’s Central Bank also provided CNY 300 billion for technical transformation and equipment renewal. 

Regarding agriculture, the Central Bank implemented an additional CNY 300 billion relending facility for agriculture businesses and SMEs, whilst the Ministry of Finance allocated CNY 1.4 billion in disaster relief funds to grain farmers across 30 provinces. This support targets the purchase of pesticides and equipment needed for crop disease prevention and control. 

At the subnational level, the Shenzhen Province launched a CNY 5 billion semiconductor and integrated circuit industry investment fund, managed by Shenzhen Capital Group. Shanghai introduced targeted support for advanced energy technologies through a new scheme to promote the construction of new power systems, offering up to CNY 50 million for individual advanced energy storage projects. Shandong Province launched a state aid package to support AI industrial chain development, whilst Guangdong Province introduced a package to stimulate market vitality in 2025-2027. Meanwhile, Hubei Province received EUR 138.7 million to foster low-carbon agriculture and soil health improvement.

The guidelines on strengthening sci-tech innovation and self-reliance also foresee increased support for foreign investment in domestic scientific and technology companies. Similarly, Guangdong Province’s market vitality package also sets incentives for foreign-funded multinational corporations that set up headquarters in the province. 

When MOFCOM temporarily removed 17 US companies from its Unreliable Entity List, it lifted the investment restrictions applicable to them. This allows these entities to pursue new investments in China during the 90-day suspension period.

The EU prepared a new countermeasure package against US tariffs, intensified its sanctions regime against Russia and expanded industrial support measures. The GTA team documented 95 new interventions announced.

The Commission launched a public consultation on a countermeasures package against US tariffs, which includes potential export restrictions on five items covering metal scrap and chemical products. The consultation, running until 10 June 2025, forms part of the EU's response to US "reciprocal tariffs" and automobile tariffs. Commission President Ursula von der Leyen emphasised the EU's commitment to finding negotiated outcomes while still preparing for all possibilities.

As part of its 17th sanctions package against Russia for its invasion of Ukraine, the EU extended export bans to certain chemicals, metals and machinery destined to Russia. It also added 31 entities to the list of firms that cannot receive exceptions from export bans on dual-use goods and technology. The affected entities were headquartered in Russia, Serbia, Türkiye, the United Arab Emirates, Uzbekistan, and Vietnam. In a related development, the Commission removed Chinese company Qisda Optronics (Suzhou) from the same list.

The EU’s proposal for a new countermeasure package against the US "reciprocal tariffs" and automobile tariffs also included potential tariffs on 4’951 US products. The affected products covered a broad range of industrial and agricultural goods, including whiskies and aircraft. 

Furthermore, the Commission presented a “REPowerEU Roadmap” anticipating measures to ban Russian gas imports, including LNG, by the end of 2027. The first legislative proposals under the initiative are expected by June 2025.

The Commission unveiled its "Choose Europe to Start and Scale" strategy to support technology-driven startups and scale-ups. Among others, the strategy sets the framework for the expansion of the European Innovation Council and the establishment of a future “Scaleup Europe Fund”. 

Concerning the green transition, the Commission approved a EUR 1.2 billion Dutch state aid scheme to support manufacturing companies in their decarbonisation efforts. The European Investment Bank (EIB) lent EUR 700 million to the joint venture between Equinor and Polenergia for the construction of two large-scale offshore wind farms in Poland. Germany's KfW IPEX-Bank supported the export of wind turbines by Siemens Gamesa to the same wind project. KfW also provided EUR 100 million for renewable energy projects. 

In terms of infrastructure development, the EIB signed a EUR 605 million loan with PKP Intercity for railway fleet renewal in Poland. Additionally, the bank provided a EUR 450 million loan to EWE for energy infrastructure renovation in Germany.

The Commission proposed measures to simplify the “Common Agricultural Policy” to enhance agricultural support. These include higher annual lump-sum payments for organic farming. In terms of national initiatives, France implemented a EUR 5 billion reinsurance scheme to support wine exports to the US, and Portuguese agricultural companies will be able to access EUR 75 million loans through the EIB's partnership with Santander.

Other financing highlights include the European Investment Fund’s portfolio guarantee agreement with BNP Paribas Leasing Solutions for up to EUR 200 million and an EUR 150 million investment to support the development of new drugs and medical treatments. At the national level, Spain expanded its international financing efforts with a USD 200 million agreement between its Official Credit Institute and the Brazilian Development Bank BNDES. Italy’s Eximbank, SACE, supported Italian exports to Morocco with EUR 365 million. 

The EU expanded its sanctions against Russia and associated entities. It froze the assets of several companies based in Russia, Türkiye, Belarus, Czechia, China, Hong Kong, Israel, occupied Ukrainian territories, the United Arab Emirates and the United Kingdom. Maritime restrictions were reinforced by prohibiting port access and related services to 189 vessels. These vessels allegedly "contribute to Russia’s warfare against Ukraine".

Beyond sanctions, the Commission launched the "Choose Europe Initiative" to attract researchers and scientists to the EU, potentially expanding labour market access for skilled professionals. 

In terms of trade defence, the Commission initiated an antidumping investigation concerning imports of certain pneumatic tyres from China. It follows an application by the Coalition Against Unfair Tyre Imports, representing the Union industry. Brussels also imposed definitive antidumping duties on Chinese flat-rolled products of iron or non-alloy steel ranging from 13.1% to 62.3%.

The GTA documented 254 new interventions announced by jurisdictions outside the US, China, and the European Union in the last four weeks. Significant developments include:

Afreximbank’s Member States established the USD 1 billion “Africa Film Fund” for the provision of equity to the continent's film and creative industries.

Argentina eliminated export duties for 4’442 industrial products, which previously faced duties ranging from 3% to 4.5%. The country also reduced import tariffs on video game machines, smartphones and laptops from 16% or 35% to 8% or 20%, with further reductions to 0% scheduled for January 2026. Finally, the government approved the "Proyecto de Licuefacción de Gas Natural" as a beneficiary of the “Incentive Regime for Large Investments” (RIGI) in the "Long-Term Export Promotion Project" modality. 

Brazil’s government allowed the national industry to obtain import authorisations for solid waste if used for transformation into strategic materials and minerals. The measure revokes a ban applicable since 2010 and aims to promote the circular economy whilst meeting industry demands. Some of these imports may be subject to quantitative restrictions.

Canada’s Ontario announced its plans to inject an additional CAD 1.3 billion into the “Ontario Made Manufacturing Investment Tax Credit”, including financing for foreign investments in the region. The country initiated antidumping investigations on steel strapping imports from China, South Korea, Türkiye, and Vietnam, whilst launching a parallel anti-subsidy investigation on steel strapping specifically targeting Chinese imports. 

The Eurasian Economic Union updated its Generalised System of Preferences, reinstating the status of Jordan, Lebanon, and Mongolia whilst excluding the Marshall Islands and El Salvador. Additionally, it changed the GSP status of Bhutan and São Tomé and Príncipe.

India approved a semiconductor “Outsourced Semiconductor Assembly and Test (OSAT) facility” developed jointly by HCL Technologies Limited and Foxconn Hon Hai Technology under a capital expenditure programme of December 2021. The government also prohibited all imports from Pakistan, applying to all direct or indirect imports and transit of goods. Moreover, the Bureau of Civil Aviation Security revoked the security clearance of Turkish firm M/s Celebi and its associated companies on the grounds of national security.

Kazakhstan benefited from a 150’000 tonnes duty-free quota for potato imports established by the Eurasian Economic Commission. The measure will be valid throughout June 2025. 

Malaysia granted Ancom Crop Care Sdn Bhd authorisation to import up to 300 tonnes of a pesticide containing Tebuthiuron as its active ingredient. These imports are prohibited under the Pesticides Act 1974.

Mexico implemented tax incentives for companies operating within the newly created "Economic Development Poles for Welfare". These include a 100% income tax deduction on investment in new fixed assets until September 2030. 

Russia adjusted its export quotas on mineral fertilisers from June to November 2025, lifted export bans on protective clothing and batteries and extended the export ban on waste and scrap precious metals until November 2025. Moreover, the country benefited from a higher in-quota volume of duty-free potato imports.

South Africa’s Cabinet approved a “Critical Minerals and Metals Strategy” calling for financial support for battery manufacturing, titanium processing, mining research and development, and others. This support would also be subject to localisation initiatives. Additionally, the government granted ZAR 51 billion guarantee facility for Transnet to support the state-owned company's capital investment programme and debt obligations. Its Revenue Service decreased the customs duty on sugar from ZAR 3.77/kg to ZAR 2.82/kg.

South Korea implemented an extensive package of measures to address economic challenges and US tariff impacts. The National Assembly approved a supplementary budget allocating KRW 13.8 trillion for trade risk response, including support for the AI, high-tech industries, and small businesses. The Korea Credit Guarantee Fund provided KRW 3 trillion in special guarantee support for crisis response, and the Korea Technology Finance Corporation offered KRW 1.2 trillion in guarantee support. The Korea Trade Insurance Corporation will support SMEs with KRW 1.2 trillion of trade finance, whilst the Industrial Bank of Korea will grant KRW 1 trillion to SMEs and mid-caps in export-led sectors. In terms of classic trade, the government established new import tariff-rate quotas for several goods, effective until December 2025. 

Thailand implemented an investment promotion package to enhance competitiveness amid “global trade tensions resulting from the impact of US trade policies”. The Board of Investment (BOI) increased the corporate income tax exemption for SMEs from 50% to 100% and approved Galaxy Data Centre Pte Ltd's THB 22.31 billion investment for a data centre project in Rayong Province. BOI also suspended investment promotion in six sectors facing potential oversupply or negative environmental impacts. It introduced new localisation requirements for data centre investments and regarding Thai personnel in the manufacturing sector. In addition, the country removed the requirement for rice exporters to maintain a minimum stock of 500 tonnes, eliminating the previously mandated stock holding for export permits under the Rice Trade Act of 1946.

Türkiye introduced a duty-free import tariff-rate quota on corn for 1 million tonnes, effective from May through July 2025. The out-of-quota tariff rate is 130%. The government also exempted certain egg categories from the Support and Price Stability Fund export surcharge. 

The United Arab Emirates launched the AED 1 billion “Emirates Growth Fund” for providing equity to SMEs in priority sectors, including manufacturing, food, healthcare, and advanced technology. In addition, the Abu Dhabi Exports Office and Emirates Development Bank announced the allocation of AED 1 billion in export financing for UAE-based manufacturers.

The United Kingdom signed the "Economic Prosperity Deal" with the US, agreeing to create preferential import tariff-rate quotas for 13’000 MT of beef and 1.4 billion litres of ethanol imported from the US, whilst eliminating the 20% in-quota tariff on the existing beef quota arrangement. In terms of sanctions related to the Russian invasion of Ukraine, London froze the assets of entities headquartered in China, Russia and Switzerland. It also sanctioned 18 vessels allegedly carrying Russian oil, barring them from UK port access and maritime services. The British government also granted GBP 129 million to BioNTech SE for its AI-driven medical research.

Vietnam published an “Action Plan for Private Economic Development”, which calls for localisation requirements in new FDI projects and provisions to exempt SMEs from corporate income tax for the first three years after establishment. The country adjusted its export tax on cement clinker, decreasing the rate from 10% to 5% until the end of 2026, before increasing it back to 10% from January 2027. The Ministry of Industry and Trade also set a maximum price for electricity imports from China at USD 0.093 per kWh through the national grid to minimise electricity purchase costs.

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