Progress toward reducing trade barriers has been made but uncertainty from U.S. trade policy will lead to weaker growth and continued lower inflation in the U.K., Lombardelli said.

The EU is weighing a temporary return to its pre-war trade agreement with Ukraine if a renegotiated deal is not ready to take effect when war-related tariff suspensions expire on June 5, EU diplomats said on Wednesday.

The deal still has to be finalized, but it was hailed as a success by both countries for being the first since President Trump announced broad tariffs in April.

When President Trump ended a tariff exemption for small packages from China and Hong Kong, e-commerce companies Shein and Temu lost a big advantage as they became exposed to Trump’s new sky-hig

China criticized the trade agreement reached between the U.S. and the U.K. last week as it could potentially push Chinese products out of British supply chains.

Diplomats with the European Union are still waiting for in-depth negotiations to begin. And it's unclear how quickly a substantive agreement with China could be reached.