What do we know so far?
The initial deal with the United Kingdom slashes tafs on British-made cars, ends duties on steel and aluminum, and Open’s UK Market to American Farmers.
However, the agreement signed in the White House on Thursday is not a “major trade deal”, which was postponed by Trump on social media.
It takes months or years to interact on a full trade deal and must be confirmed by the Congress, which will carry forward the timeline.
The bilateral agreement is the outline of a limited trade deal that still requires extensive interaction to finalize.
Under the scheme, tariff-UK’s biggest export on British-made cars will be reduced from 27.5% to 10%.
The rule applies to the first 100,000 vehicles imported from the UK to the US, which the government said was around the total number of UK-exported cars. Any way will have to face 25%of the tuff above that figure.
Trump has recently imposed 25% tariffs on UK Steel and Aluminum imports, which want to cut at zero.
The White House statement cited the reason for “Economic Security Measures by the UK to combat the additional potential of global steel”.
Most other UK imports still want to face 10% tariff under Trump’s mutual tariff policy declared last month.
The UK agreed to cut the tariff on US ethanol up to zero, while the American farmers would get access to the UK market for the first time.
However, the UK had to maintain its ban on American chlorine-dusted chicken and hormone-emerged beef, which was amidst welfare and environmental standards.
The UK National Farmers Union (NFU) warned that reducing the UK access to US beef and ethanol would harm domestic producers.
NFU president Tom Bradeshaw said in a statement, “Our biggest concern is that the two agricultural sectors are single to reduce the heavy burden of removing Taher industries in the economy.”
The tariffs on the UK aircraft parts will be cut up to zero, while the treaty closes so much flaws, cuts red tape and increases security for intellectual property.
This drug creates a safe supply chain for products and ensures regulatory alignment to streamline trade in this region.
Agreements including commission for digital trade, convenience of smooth border data flow and facility to increase cyber security cooperation.
What is the good deal for both sides?
Trump said he was “thrilled to declare that we have reached a successful business deal with the United Kingdom,” saying that the agreement has “increased billions of dollars of market growth for American exports.”
The White House stated that the deal creates an opportunity of $ 5 billion (€ 4.4 billion) for new American exports including wild beef and ethanol.
The UK Prime Minister Kir said that the limited deal would save jobs in British auto and steel sectors and was the beginning of better business with the US.
According to government data, the US was the largest trading partner in Britain last year, although Britain’s exports in the US have services rather than wholesale goods.
The UK ambassador to the US Peter Mandelson, who was with Trump at the White House, stated that the deal prevents adjacent trimming in a Jaguar Land Rover facility in West Midlands.
But American Automkers strongly opposed the American Automotive Policy Council (AAPC) President Matt Blunt, saying that the deal means “it would be cheaper to import the UK vehicle with a lot of content now. [parts] From one … vehicles from Mexico or Canada which are half American parts. ,
American automakers now face 25% taif on vehicles assembled in Canada and Mexico.
so what happens now?
The UK government said the tariff cut “as soon as possible” would be effective.
However, the treaty is currently only a “compromise in theory” that will require months of detailed interaction.
Pharmaceuticals, food standards and possibly UK Digital Services Tax, which hits US tech giants, will need to be resolved.
Any full deal requires approval by the US Congress, although some parts can be implemented by Trump by executive order.
Therefore it wants the need for the UK parliagenary probe, and any significant opposition, discovery as American beef with development hormones, can cause delays.
Can the US-UK deal be a roadmap for another country?
The US-UK deal may set Tram’s sweeping tattifies for other business partners, aspectally to reverse China, whose relationship with the Trump administration has hit a new low on tariffs.
The US and China are ready to meet in Switzerland later this week, the market is expected to have success in their deadlock.
Washington increased the tariff on Chinese goods by 145% last month, while Beijing retaliated with 125% Taifs on most US imports.
Many other countries including Japan and Vietnam have designed to interact with Washington to prevent the worst duties of 10% to 49% of the duties except China.
Edited by: Rob Madge
