Major benefits! The UK suspends tariffs and resumes contact with China, reshaping the trade landscape. Zero tariffs on 89 categories of goods in the UK until 2027! Attached is the complete duty-free list!

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1. Executive Summary: The UK suspends tariffs and resumes contact with China, reshaping the trade landscape

In April 2025, the UK government announced an important trade policy adjustment, deciding to suspend import tariffs on 89 categories of goods from April 2025 to July 2027. This move aims to reduce the import costs for UK businesses, with preliminary estimates suggesting that it could save businesses at least £17 million annually, while also alleviating price pressure on consumers and helping the UK economy cope with the impacts of global trade tensions, including US tariff policies.

2. UK Strategic Tariff Adjustment: Suspension of Tariffs on 89 Categories of Goods

The suspension of import tariffs announced by the UK government in April 2025 is a key measure in its recent trade policy, directly affecting the trade costs and market circulation of various goods.

2.1. Detailed Explanation of Tariff Suspension Policy

The UK government has confirmed that from April 2025 (with a specific effective date of April 27) until July 2027, it will suspend tariffs on 89 categories of imported goods. These goods cover a wide range, including everyday consumer products such as Italian flour, fruit juice, spices, coconut oil, and pine nuts, as well as industrial raw materials like plywood and plastics used in construction and manufacturing, as well as seasonal products like dragon fruit syrup and horticultural bulbs.

The exact list of affected goods and their corresponding product codes has been published through official channels of the UK government (such as the GOV.UK website and announcements from HMRC) 4. One official document (list-of-2024-duty-suspensions-to-come-into-effect.odt) details these goods 18.

Table 1: Overview of the UK's Suspension of Import Tariffs (Examples of Certain Product Categories)

Source: Compiled based on 18 and other relevant government announcement documents.

This table clearly shows the changes in tax rates for some representative products before and after the tariff suspension, intuitively reflecting the direct impact of the "zero tariff" policy. This measure aims to bring tangible benefits to UK businesses and consumers by reducing import costs.

2.2. Official Statement: Support for Enterprise Development and Alleviation of Consumer Pressure

UK government officials have clarified the policy intentions behind the suspension of tariffs on multiple occasions. Business and Trade Secretary Jonathan Reynolds emphasized: “Free and open trade can promote economic growth, lower prices, and help businesses reach the world... From food to furniture, this will reduce the everyday costs for businesses and is expected to pass on the savings to consumers.” 1. Chancellor of the Exchequer Rachel Reeves also pointed out that the policy aims to address the cost of living issues, help businesses thrive, and transfer the savings to customers. 1.

3. A New Chapter in China-UK Relations: The Policy Shift of the Starmer Government

Under the leadership of the new Labour government in the UK, China-UK relations are undergoing a transition from the previous tense situation to "pragmatic engagement," with a series of high-level mutual visits and policy statements indicating that the relationship between the two countries may enter a new phase.

3.1. Background: From Tense Confrontation to "Pragmatic Contact"

In recent years, the relationship between the UK and China has become increasingly tense under the leadership of the Conservative government (Johnson, Truss, Sunak). The UK has not only imposed restrictions on Huawei's 5G issues but has also strengthened scrutiny of Chinese investments in key areas such as nuclear power in the UK, and to some extent, has followed the US's policy towards China.

However, since the Labor government came to power in July 2024, significant changes have occurred. The new government has begun to seek a more "pragmatic," "stable and consistent," "mutually respectful" relationship with China, emphasizing the importance of engagement. The core of this new approach is to cooperate with China in areas such as trade, climate change, global health, and artificial intelligence security, while competing when necessary, and challenging in areas where there are differences in values (such as human rights, the Hong Kong issue, and stance on Russia).

3.2. Key Department Head Statements and Diplomatic Initiatives

After the new government took office, high-level interactions between the UK and China quickly resumed, with several key ministers speaking out and taking practical diplomatic actions.

Table 2: Timeline of Key Diplomatic Contacts between the UK and China during the UK Labour Government (2024-2025)

Source: Compiled based on user request information from 7.

4. Economic Drivers: Why the UK Deepens Ties with China

The recent active adjustment of the UK's policy towards China is closely related to the deep-seated motivations behind domestic economic difficulties and the urgent need for external economic cooperation. The Labour government has prioritized revitalizing the economy, and China, as the world's second-largest economy, holds significant strategic value for the UK in terms of trade, investment, and industrial upgrading.

4.1. Responding to Domestic Economic Headwinds

The UK economy has faced multiple challenges in recent years. User-provided information indicates that the inflation rate reached 4.6% in early 2025, with prices soaring while wage growth remained weak [User request information]. Official data shows that the Bank of England predicted in its February 2025 report that the Consumer Price Index (CPI) inflation rate would be 2.8% in the first quarter of 2025, expected to temporarily rise to 3.7% in the third quarter, before falling back to the target level of 2% 9. The Office for National Statistics (ONS) reported a 3.0% year-on-year increase in CPI for January 2025 10. The predictions from the EY ITEM Club are more pessimistic, forecasting that the inflation rate will rise above 3% in April 2025 and remain at that level for most of the year, only dropping to 2.4% by 2026; at the same time, the unemployment rate is expected to rise to nearly 5% by the end of 2025 11. The London Stock Exchange Group (LSEG) also mentioned in its April 2025 outlook that, influenced by factors such as tariffs, the UK's GDP growth could drop to 0.8% in 2025 and 2026, with inflation expected to rise in the short term 12.

The Communist Party government won the election with the promise of "saving the economy" against this economic backdrop [user request information]. Its policy agenda clearly prioritizes economic growth, downplaying ideological colors [user request information]. In this context, the measures to suspend tariffs on certain imported goods aim to directly alleviate the operational pressure on enterprises by reducing import costs, and are expected to transmit to the consumer end, thereby easing inflationary pressures and the cost of living crisis 1.

Table 3: Key Economic Indicators of the UK (Forecast for 2024-2025)

Source: Comprehensive data from the Bank of England (BoE), the Office for National Statistics (ONS), the EY ITEM Club, and the London Stock Exchange Group (LSEG) report.

4.2. The Significance of China's Trade and Investment for the UK's Economic Recovery

China, as the world's second-largest economy, has significant appeal for the UK, which is seeking economic recovery, due to its vast market and capital. 29.

4.3. Responding to the "hollowing out" of the UK industry and the demand for strategic partners

In specific product areas, the UK has a relatively high dependence on imports:

●    Daily Consumer Goods: According to user information, 30% of daily goods in UK supermarkets come from China, and zero tariffs are expected to reduce prices by 10% [user request information]. The UK clothing manufacturing industry is shrinking due to labor shortages and import competition, with imported goods

In the industry revenue, the proportion is relatively high at 37.

●    Food:

○    Italian pasta: In 2024, the production of dry, wet, and frozen pasta in the UK is 82,000 tons, while the consumption reaches 188,000 tons, indicating a significant import demand 38. The production of filled pasta is 69,000 tons, and the consumption is 122,000 tons 39.

○    Juice: The UK is the main importing country for juice, with imports reaching £1 billion in 2024, far exceeding the export amount of £66.2 million, while domestic juice production revenue shows a declining trend.

○    Coconut oil: The demand in the UK market is entirely dependent on imports 42. The refined coconut oil production in 2024 (169,000 tons) is lower than the consumption (185,000 tons) 43.

●    Industrial raw materials:

○    Plywood: The consumption of plywood in the UK (960,000 cubic meters) heavily relies on imports (1,000,000 cubic meters), with China being the largest supplier 44.

○    Polypropylene: The UK production (205,000 tons) is lower than the consumption (267,000-268,000 tons), which also indicates import dependence 46.

In this context, China's investment and technology are seen as important external resources for the UK's industrial upgrading and response to "hollowing out."

source.

5. In-depth Analysis: Dynamics of Sino-British Bilateral Trade and Investment

The economic relationship between China and the UK is reflected in the constantly changing trade data, the import and export structure of key industries, and Chinese investment.

The role played in the UK economy. A deep analysis of these dynamics helps to understand the economic background and potential impacts of the recent policy adjustments in the UK.

5.1. Current Status of Sino-British Trade: Volume, Balance, and Trends

Regarding the statistical data of Sino-British bilateral trade, due to differences in statistical methodologies (such as CIF/FOB pricing, rules of origin/transit), there may be discrepancies between the data from China and the UK.

According to user-cited Chinese customs data (Tengdao mapping):

In 2024, the total bilateral trade between China and the UK reached 98.426 billion USD, with a year-on-year growth of 0.5%. Among them, China's exports to the UK (UK's imports from China) were 78.883 billion USD, with a year-on-year growth of 1.2%; China's imports from the UK (UK's exports to China) were 19.543 billion USD, with a year-on-year decrease of 2.7%. The UK’s trade deficit with China reached 59.341 billion USD.

Entering the first quarter of 2025, the total bilateral trade amounted to 22.491 billion USD, a slight decrease of 0.4% compared to the same period last year. China's exports to the UK were 18.358 billion USD.

Yuan, a year-on-year increase of 6.2%; China imported 4.133 billion USD from the UK, a significant decrease of 22.2% year-on-year. The UK’s trade deficit with China is 14.225 billion USD.

In 2024, the UK ranked 18th among China's foreign trade partners and 4th among European countries (after Russia, Germany, and the Netherlands). China is the UK's sixth-largest trading partner. Notably, the UK is China's sixth-largest source of trade surplus. From 2018 to 2024, China achieved a cumulative trade surplus of 359.6 billion USD with the UK [User requested information].

Table 4: Sino-British Bilateral Trade Statistics (First Quarter of 2024 and 2025, Based on Chinese Customs Data)

Source: User request information (from the General Administration of Customs of China/Tengdao).

According to data from the Office for National Statistics (ONS) in the UK (up to the fourth quarter of 2024):

The total trade in goods and services between China and the UK is £98.4 billion, a decrease of 4.2% compared to the same period last year. Among them, the UK's exports to China are £29.7 billion, a decrease of 11.4% (goods exports £16.7 billion, a decrease of 23.8%; services exports £13.0 billion, an increase of 12.1%). The UK imports from China amount to £68.7 billion, a decrease of 0.8% (goods imports £65.4 billion, a decrease of 0.9%; services imports £3.3 billion, an increase of 2.4%). The UK's trade deficit with China is £39.0 billion. China is the UK's fifth-largest trading partner (accounting for 5.5% of the UK's total trade), the sixth-largest export market, and the third-largest source of imports.

Table 5: Sino-British Bilateral Trade (UK ONS Data, Goods and Services, for the four quarters up to the fourth quarter of 2024)

Source: 33 (Office for National Statistics ONS).

Chinese customs data shows that the UK's exports to China experienced a significant decline in the first quarter of 2025, while UK ONS data indicates that in the four quarters leading up to the end of 2024, service exports demonstrated strong growth, which to some extent compensated for the downturn in goods exports.

5.2. Key Areas: Analysis of Major Import and Export Commodity Categories

China's main export products to the UK (2024, based on user-provided Tengdao data): In terms of USD, the top five product categories are:

1.   HS 98040000 (Low-value simplified customs clearance goods): 3.712 billion USD (Year-on-year growth 41.23%)

2.   HS 85171300 (Smartphones): 3.232 billion USD (Year-on-year decrease of 21.29%)

3.   HS 87038000 (Mainly used for passenger pure electric vehicles): 3.191 billion USD (decreased by 26.68% compared to the same period)

4.   HS 84713090 (Other portable automatic data processing devices with a weight not exceeding 10 kilograms): 3.098 billion USD (Year-on-year growth 6.73%)

5.   HS 85076000 (Lithium-ion batteries): 1.662 billion USD (Year-on-year growth 1.81%) Other important export products also include non-combustion nicotine-containing products, toys, plastic products, tires, and various electrical equipment [User request information].

Table 6: Top five commodities exported from China to the UK (HS codes and descriptions, 2024 value and year-on-year changes)

Source: User request information (from Tengdao data).

The main export products from the UK to China (China's imports from the UK, 2024, according to user-provided Tengdao data): In terms of US dollars, the top five product categories are:

1.   HS 87032362 (Off-road vehicles with a displacement of 2500cc

2.   HS 33049900 (Other beauty products or cosmetics and skincare products): 1.142 billion USD (Year-on-year growth 13.41%)

3.   HS 27090000 (Crude oil and crude oil extracted from bituminous minerals): 1.042 billion USD (decreased by 31.24% year-on-year)

4.   HS 74040000 (Copper waste and scrap): 796 million USD (Year-on-year growth 17.31%)

5.   HS 87032411 (Passenger cars with a displacement of 3000cc < displacement ≤ 4000cc, equipped only with spark-ignition internal combustion piston engines):

$435 million (year-on-year growth of 31.76%) Other important export products include whiskey, aluminum scrap and waste, pharmaceuticals, turbo fan jet engines and their parts, etc. [User request information].

Table 7: The top five products exported from the UK to China (HS codes and descriptions, 2024 value and year-on-year changes)

Source: User request information (from Tengdao data).

From the perspective of trade structure, the goods imported by the UK from China are mainly manufactured products and electronic products, with the proportion of high-tech products such as electric vehicles and batteries increasingly rising. In contrast, the UK's exports to China are concentrated on high-value vehicles (mainly luxury brand fuel vehicles), specialty goods (such as cosmetics and whiskey), raw materials/waste, and advanced engineering products (such as aircraft engine components).

Note: The above content is organized and analyzed by AI and is for reference only.

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