Latest international trade updates

US–Canada trade tensions rise as UK exporters gain new access through CPTPP

Trade tensions between the US and Canada have escalated, creating further uncertainty for businesses trading across North America but potentially new opportunities for UK exporters.

Canada introduced retaliatory tariffs on around $20 billion of US goods on 8th September, following earlier US tariff measures. The US has since announced further restrictions on Canadian goods, including dairy products and motorcycles, due to take effect later this month. President Trump has also directed the US government to begin removing Canadian products from some federal procurement lists. 

The developments come at a particularly interesting time for UK businesses.

On 1st September, Canada became the final CPTPP (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) member to bring the UK's accession into force, giving UK businesses full access to the 12-country trading bloc.

Canada remains heavily dependent on the US as an export market, but recent figures show that dependence beginning to reduce. In July, Canadian exports to the US fell by 6.6%, while exports to markets outside the US increased by 7.4%.

For UK businesses, this is worth watching.

As Canadian companies look to diversify their suppliers and trading relationships, UK exporters may find new opportunities, such as reduced import duties, streamlined documentation and synergies across all CPTPP member countries. For example, if you have an order from Canada, you could use qualifying components from CPTPP countries such as Malaysia or Vietnam in your product. Because all three countries are part of the same trade agreement, those components may count as ‘originating’, helping your finished product meet the rules needed to qualify for preferential tariffs.

However, having a trade agreement in place does not automatically mean businesses will benefit from it. Companies still need to understand whether their goods qualify, which rules of origin apply and whether CPTPP is the best agreement to use for a particular shipment.

For UK exporters already trading with Canada, or businesses considering the market, this could therefore be a good time to review the opportunities.

Iran sanctions: exporters should prepare for changes from 29th September

The UK Government has also published new guidance on changes to sanctions applying to Iran.

The amendments take effect on 29th September 2026 and extend restrictions covering a range of goods, technologies and services. Businesses do not necessarily need to trade directly with Iran to be affected.

Businesses potentially affected should review their existing export controls and due diligence before the changes take effect.

Steel import rules change again from 1st October

There is also an update for businesses importing steel into the UK.

Since July, the Government has limited the amount of steel that can enter the UK tariff-free under its new steel trade measure. Overall quotas were reduced by 51%, with imports above the available quota potentially facing a 50% tariff.

From 1st October, two non-alloy wire commodity codes – 72173049 and 72173090 – will be removed from the measure. For those products, the tariff under this particular measure will fall from 50% to 0%.

For importers: check your commodity codes and check the quota position before your goods move. An incorrect classification or misunderstanding of the rules can make a considerable difference to the final cost of importing goods.

Need help understanding what these changes mean for your business?

International trade rules can change quickly, and working out whether a new tariff, sanction or trade agreement affects a particular shipment is not always straightforward.

Business West's International Trade Services team can help businesses understand the rules, identify opportunities under Free Trade Agreements and make sure goods move with the right documentation and compliance in place.

Sources:

https://www.reuters.com/business/autos-transportation/canadas-retaliatory-tariffs-take-effect-us-trade-talks-stall-2026-09-08/ 
https://www.reuters.com/world/americas/canada-july-trade-surplus-shrinks-weeks-before-new-us-tariffs-2026-09-03/  
https://www.gov.uk/government/publications/notice-to-exporters-202618-iran-sanctions-amendments-effective-from-29-september-2026 
https://www.gov.uk/government/publications/notice-to-exporters-202618-iran-sanctions-amendments-effective-from-29-september-2026