WIREDGOV

US Tariffs: Temporary Relief, Lingering Uncertainty

President Trump has temporarily exempted smartphones and laptops from new tariffs, providing short-term relief to markets. However, further levies on semiconductors and electronics remain under consideration, maintaining volatility in the market.  

In response to the baseline 10% tariff imposed on countries around the world earlier this month, the UK government is consulting businesses on potential retaliatory measures, with a focus on minimizing domestic impact. techUK is actively engaging in this process and members will be receiving a draft response for input shortly.

EU-UK Summit: Defense and Digital Cooperation

The upcoming EU-UK Summit on May 19 in London presents an opportunity to strengthen bilateral ties. A proposed security and defense partnership is on the agenda, which could grant UK firms access to a €150 billion EU defense fund. However, negotiations face challenges, including disputes over fishing rights. techUK has joined other industry bodies in urging the EU and the UK to strike a security pact as early as next month and not to make it conditional on a wider reset.

EFTA-Malaysia trade pact sealed

The European Free Trade Agreement countries and Malaysia have concluded a trade deal following more than ten years of negotiations. The agreement includes several firsts for EFTA, including government procurement commitments with an Asian partner. Increased market access for the services sector has also been secured.

ASEAN's Digital Trade Initiatives

In response to global tariff pressures, ASEAN is accelerating efforts to enhance digital trade integration. A roadmap has been endorsed to develop a comprehensive regional digital economy agreement by year-end, aiming to bolster intra-regional trade and economic resilience.

G7 Focus on Economic Security

The G7 has shifted its spotlight to bolstering economic security and supply chain resilience in the face of mounting geopolitical pressures. Ministers will be discussing coordinated action on critical technologies, including semiconductors, rare earths, and cybersecurity infrastructure. As part of the Tech7, techUK is actively engaging with the UK Government and the Canadian Presidency on the tech sector’s priorities for the G7.

UK-India Trade Deal Progress

The UK and India are nearing the conclusion of a comprehensive free trade agreement, with allegedly 90% of the deal already agreed upon. While the deal is unlikely to be anywhere near as ambitious as those the UK has with its other partners in the region, it has however the potential to create commercial links and open up opportunities for UK tech firms seeking to expand into the Indian market.