The drug trade now has Submarines — and they work 😲

TRADE NEWS

US, UK & China Trade Deals

In a week of major trade developments, the United States made bold moves that could reshape the global supply chain. From a temporary tariff truce with China to a fresh bilateral agreement with the U.K., here’s a concise look at the key updates and their potential impact.

🇺🇸 U.S.–U.K. Trade Agreement

• On May 8, the U.S. and U.K. signed a limited trade deal reducing select tariffs.

• The agreement removes a 20% tariff on U.S. beef exports to the U.K., with reciprocal access granted to British agricultural products.

• However, a clause requiring U.K. compliance with U.S. steel and aluminum security standards has sparked concerns over its implications for U.K.–China relations.

🛃 U.S.–China Tariff Truce

• On May 12, the U.S. and China agreed to a 90-day reduction in tariffs following high-level talks in Geneva.

• U.S. tariffs on Chinese goods dropped from 145% to 30%, while China lowered tariffs on U.S. goods from 125% to 10%.

• The deal also suspends certain non-tariff barriers and lays the groundwork for ongoing negotiations.

In response to the tariff truce, shipping lines are reporting a surge in demand. Hapag-Lloyd noted a 50% week-on-week increase in bookings from China to the U.S., driven by importers racing to take advantage of the lower duties. This sharp rise is reminiscent of the early pandemic rush and raises concerns about potential port congestion, equipment shortages, and delayed deliveries. Analysts warn of a looming “demand shock” that could strain logistics networks—importers are advised to prepare for possible disruptions.

While the tariff reprieve offers short-term relief, the long-term outcome of trade negotiations remains uncertain. The next few months will be critical in shaping the direction of global trade policy and supply chain stability.

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VIDEO OF THE WEEK

Secret Cocaine Superhighway Under the Atlantic

The cocaine trade is far bigger and more geographically diverse than at any other point in history with some groups opening up underwater smuggling routes from South America as far as Europe and Australia, using homemade narco submarines.

TRADE SNIPPETS

China's strategic investment in Brazil's export infrastructure. China is investing in Brazil's Santos port to build its largest export terminal, aiming to triple grain export capacity. This move reduces reliance on U.S. imports amid trade tensions.

Thai officials seize 200 tons of illegal e-waste from U.S.Thai authorities intercepted 200 tons of falsely labeled electronic waste from the U.S., spotlighting growing concerns over hazardous imports and environmental risks in Southeast Asia.

Suez Canal offers 15% discount to attract large container ships. The Suez Canal Authority is providing a 15% transit fee discount for large container ships over 130,000 metric tons, aiming to regain traffic lost due to Red Sea security concerns.

U.S. eases AI chip exports for allies while tightening Huawei restrictions. The U.S. has relaxed AI chip export rules for allies, reversing Biden-era controls, while warning that using Huawei's Ascend chips globally may violate U.S. export laws.

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