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US–EU Trade Deal Signals New Trade Era

Aug 5, 2025 | , , , , , , , , , , , , , , , , , ,

The US and EU have agreed a landmark trade framework taking effect 1 August, with a 15% baseline tariff, replacing many higher existing rates.

In addition to lowering tariffs the new trade deal opens markets, and pledges huge investment flows, with significant opportunities for UK traders able to leverage the EU’s expanded access to the U.S. market.

Headline tariff changes:

  • Cars & parts – Cut from 27.5% to 15%
  • Pharmaceuticals & semiconductors – 0% tariff until review; max. 15% after
  • Steel & aluminium – Stay at 50% pending quota deal
  • Zero‑for‑zero tariffs – On aircraft, some chemicals, generic drugs, semiconductor equipment, selected agri‑products, raw materials
  • Still under negotiation – Wine and spirits tariffs

Strategic commitments:

  • EU to buy $750bn in US oil, LNG and nuclear technology
  • EU firms to invest $600bn in the US over Trump’s second term
  • Defence procurement from US suppliers planned

Opportunities for US, EU & UK Traders

The agreement creates multiple areas of advantage for transatlantic trade:

For EU exporters to the U.S.:

  • Reduced tariffs on high-value sectors such as cars, pharmaceuticals, and technology components.
  • Greater certainty in supply chain planning with capped tariff rates post-investigation.

For U.S. exporters to the EU:

  • Immediate tariff elimination for priority goods, expanding competitiveness in aerospace, chemicals, and agri-products.
  • Increased market access supported by European government procurement in energy and defence.

For UK exporters and importers:

  • Ability to leverage EU supply chains for tariff-advantaged U.S. market access.
  • Opportunities to integrate into transatlantic supply networks in sectors such as automotive, chemicals, and renewable energy.

Leverage Metro’s EU network, in‑house customs brokerage, and on‑the‑ground teams in the United States to navigate this new trade landscape. Whether you’re reassessing sourcing strategies, managing new tariffs, or planning market entry, our experts can deliver compliant, cost‑effective solutions across every mode and market.

Email Managing Director, Andrew Smith, to explore how we can optimise your US/EU trade strategy.

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Transatlantic Air Cargo: Calm Surface, Hidden Currents

Jul 22, 2025 | , , , , , , , , , , , , ,

The transatlantic air cargo market may appear steady, with stable capacity and rates, but beneath this surface calm, subtle shifts are reshaping flows, costs, and opportunities, especially on niche routes like Canada–Europe and Mexico–Europe.

While wide-body and freighter capacity from Europe to North America has edged up around 2% so far this year, the opposite direction has slipped by about 1%. Recent months, however, reveal sharp month-on-month jumps, with capacity from Canada to Europe up 14%, and Europe to Canada up 16%. Airlines like Air Canada and Air France-KLM have expanded significantly, while others have held or slightly reduced services.

The capacity surge on Canada–Europe routes coincides with the summer holiday season, boosting passenger belly-hold space. But freight data points to something more: flown tonnages from Europe to Canada jumped around 10% in early July compared with the previous three weeks, though without a corresponding rise in average rates…yet.

On the pricing front, the top end of spot rates between Canada and the UK nearly doubled at the end of June, while France–Canada rates also climbed sharply. Strengthening UK–Canada trade ties, including the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), are likely adding further momentum, potentially lifting logistics demand across both ocean and air freight.

Elsewhere, European exporters have seen steady or rising air cargo flows to North America:

– Italy has boosted air exports to the US by over one-third, focusing on fashion goods.
– France has lifted exports by nearly half, driven by luxury and pharmaceuticals.
– Norway fish exports to the US have surged over 50%.
– Ireland, concerned about possible US tariffs on pharmaceuticals, has seen air rates to the US climb since May, with sharper increases in July.

Softening Signs, But Cautious Optimism
Overall, transatlantic rates have eased with the arrival of summer and additional belly capacity, particularly on mainline Europe–US routes. Expect stable or slightly reduced spot pricing, typical for this seasonal slack period. However, some airlines are expressing optimism for the second half, buoyed by promising early signals from peak season negotiations.

A delayed US tariff deadline (now 1 August) and new trade measures affecting partners like Japan and South Korea could prompt a short-term wave of airfreight “front-loading.” Longer-term, shifting freighter capacity from Pacific routes toward the transatlantic may rebalance the market, while the removal of US de minimis import exemptions will reshape eCommerce flows into the US.

While today’s transatlantic air cargo market may seem subdued, pockets of demand and policy uncertainty are quietly stirring the waters. Shippers need to be agile to capture emerging opportunities and be prepared for the unexpected.

Metro’s dedicated air freight team and expanding U.S. presence help shippers navigate shifting transatlantic flows with confidence. From capacity management and multimodal routing, to agile supply chain management and inventory visibility, we keep your air cargo moving smoothly — across the Atlantic and around the world. EMAIL our Managing Director, Andy Smith, to learn more.

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U.S. RoRo Port Fees Set to Disrupt Automotive Logistics

Jul 22, 2025 | , , , , , , , ,

The U.S. Trade Representative (USTR) has confirmed it will introduce new fees on foreign-built roll-on/roll-off (RoRo) car carriers calling at U.S. ports from October 14, 2025, as part of a broader push to counter China’s maritime influence.

The initial fee of $150 per Car Equivalent Unit (CEU) is designed to incentivise shipping lines to invest in U.S. built vessels. A temporary remission is offered to companies that order and take delivery of a U.S. built car carrier of equal or greater capacity within three years. They can avoid the charges during that period.

However, recent USTR updates suggest the fee may shift to a $14 per net ton charge to simplify administration and reduce the risk of fee evasion. The final decision is pending following public consultations.

Impacts on RoRo Operators and Automotive Logistics
Major global vehicle carriers operating between Europe, Asia, and the U.S. are warning of significant cost increases, potentially reaching hundreds of millions of dollars annually. 

A leading Nordic carrier estimates its annual liability could reach $300 million, based on 300–350 annual voyages to the U.S, while another major Norwegian operator projects $60–70 million per year in additional fees.

Major carriers impacted include Japanese operators “K” Line, Mitsui O.S.K. Lines, NYK Line, and South Korea’s Hyundai Glovis, all of whom have extensive U.S. vehicle import operations.

While some carriers plan to pass costs onto customers, there is growing concern that surcharges will ripple through supply chains, raising prices for manufacturers, dealers, and ultimately consumers.

There is also confusion over how mixed-use vessels, those carrying both cars and containers will be classified, with some operators calling for fees to be based on actual cargo moved, not total vessel capacity.

The risk of double charges on multi-port U.S. calls is further raising alarm, with some carriers warning they may be forced to reduce or withdraw U.S. services altogether if the fee regime is not clarified or adjusted.

The fees will not apply to U.S. government cargo or vessels operated directly for the government by agents or contractors.

Critics argue that the USTR’s blanket approach to all foreign-built RoRo vessels may create unintended market distortions, harming non-Chinese carriers, squeezing capacity, and undermining U.S. automotive supply chains, while doing little to curb China’s maritime ambitions.

Final regulations are expected before the end of the summer, and the industry is watching closely.

Stay ahead of global logistics shifts, with Metro’s technology and expertise helping you overcome change. Drive automotive supply chain performance with Metro’s specialised logistics solutions. From finished-vehicle transport to after-sales support, we deliver precision, resilience, and cost efficiency across global automotive supply chains. EMAIL Managing Director, Andy Smith, to learn more

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Europe Builds Momentum as Trans-Pacific Slowdown Deepens

Jul 9, 2025 | , , , , , , , , , , , ,

Global container shipping is evolving rapidly, with Asia–Europe trade lanes showing fresh strength just as the transpacific market enters a significant slowdown. This divergence is creating new challenges and opportunities for shippers.

On the Asia–Europe route, demand has been steadily rising, with spot freight rates climbing significantly since the end of May. After a sluggish start to the year, the peak season seems to have arrived, driven by stronger consumer sentiment in Europe, improved macroeconomic indicators, and renewed retailer confidence in stock building.

Forecasts for European imports have been upgraded. Instead of the previously expected 3.5% annual growth, volumes are now set to increase by 6% through 2025. This is being supported by lower inflation, falling unemployment, rising disposable income, and stronger euro/sterling, which is making imports from Asia more affordable.

A new UK trade agreement is also giving exporters a boost by reducing U.S. tariffs on inbound goods to 10%. Discussions with the EU are ongoing, and similar tariff terms could apply more broadly to European supply chains, further stimulating demand.

In contrast, container traffic from Asia to North America is heading in the opposite direction. The sharp increase in demand earlier this year, driven by front-loading stock ahead of tariff deadlines, has left warehouses full and order volumes slowing. With inventory levels high and economic uncertainty persisting, import activity is falling, and rates have dropped since early June from Asia.

Adding to this pressure is the looming reintroduction of US tariffs. Temporary suspensions on general and China-specific tariffs are set to expire in July and August respectively. While extensions are possible, the expected imposition of new duties, potentially rising to 55% for some Chinese goods, may suppress demand further and shift sourcing decisions in the second half of the year.

Although a short-lived spike in cargo arrivals at US West Coast ports may materialise in July, driven by attempts to beat the tariff deadlines, this is expected to be a temporary reprieve in a broader downtrend.

Meanwhile, carriers on the Asia–Europe route are preparing to balance higher demand with tighter capacity. Shipping lines plan to withdraw approximately 90,000 TEU of scheduled space in August compared to July, using blank sailings and capacity cuts to maintain pricing discipline. If volumes remain strong, this could lead to a second wave of rate increases before the end of summer.

Beyond commercial dynamics, security remains a key concern in the Red Sea. A bulk carrier was attacked this week using drone boats, rocket-propelled grenades, and small arms, in the first such assault since December. Analysts warn that the threat level to commercial shipping has risen significantly, with continued disruption to Suez-linked services.

As trade routes shift, tariffs tighten, and risks increase, the ability to adapt quickly and make informed shipping decisions is more critical than ever.

Metro’s sea freight team provides expert guidance to help you navigate volatile conditions, mitigate disruption, and make your supply chain more resilient. Whether you’re importing from Asia or exporting to global markets, we’ll keep your cargo moving and your costs under control.  EMAIL our managing director Andrew Smith.

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