UK and US agree deal slashing Trump tariffs
CliffNotes
- UK and US agree deal slashing Trump tariffs
- Most UK imports still face 10% levy
- Most analysts say deal isn’t significant change
UK and US agree deal slashing Trump tariffs
What Happened
The US has agreed to lower import taxes on a limited number of British cars and will also allow some UK steel and aluminium into the country without tariffs.
This new agreement brings some relief to important UK industries that have been hit hard by tariffs introduced by President Donald Trump since returning to office in January.
However, most UK goods will still face a 10% import duty when entering the US.
Leaders from both countries praised the move as a positive step, but many analysts say it doesn’t significantly change the overall trade relationship.
No official deal was signed, and both governments shared only limited details about the agreement.
What’s In The Deal
- US had agreed to reduce the import tax on cars – which Trump had raised by 25% last month – to 10% for 100,000 cars a year.
- Tariffs on steel and aluminium, which Trump raised earlier this year to 25%, have also been slashed
- The two countries also each agreed to allow the import of up to 13,000 metric tonnes of beef from the other country without tariffs
- US said the deal would create a $5bn (£3.8bn) “opportunity” for exports, including $700m in ethanol and $250m in other agricultural products
Perspective
Labour MPs praise the deal whilst opposition parties want more detail and a chance to scrutinise the proposal in Parliament.
Conservatives
Kemi Badenoch criticised the deal saying it amounted to tariffs being lowered by the UK, while being hiked in the US.
“This is not a historic deal with the US,” she said. “We’ve been shafted.”
Liberal Democrats
The Lib Dems are demanding a vote in Parliament on the deal saying it would show a “complete disrespect to the public” if MPs were denied a say.
Sir Ed Davey said: “When it comes to any trade deal – and especially one with someone as unreliable as Donald Trump – the devil will be in the detail.
“One thing is clear, Trump’s trade tariffs are still hitting key British industries, threatening the livelihoods of people across the UK
Reform UK
Leader Nigel Farage said the deal was a “step in the right direction” calling it a welcomed development. “The important point is that we are doing stuff, we are making a move,” he said. “It’s a Brexit benefit we were able to do this.”
Reactions From The Media
- The Scotsman says the trade deal is a ‘welcome sign of peace’ amid the economic war launched on ‘America’s allies’. The paper says “persuading Donald Trump to keep the US within the global club of democracies over the next four years is a diplomatic priority.”
- The Daily Telegraph reports that under the terms of the deal the US can “object to Chinese firms investing in the UK.” The paper says the Tory party has said this amounts to a “veto” – but the claim has been dismissed as “categorically untrue.”
- The Daily Mail says the trade deal was “made by Brexit”. The paper says it is a bid to save the British car industry, which had been subject to American tariffs. The front page praises the deal, online the paper says Britain has been “shafted.”
- The FT reports the UK has won concessions on car and steel exports but “failed to reverse” the flat 10% levy on most goods.
- The i newspaper says the UK has won the global race to “shake off worst Trump trade tariffs” but says questions still remain over the pharmaceutical industry.
- The Times says the prime minister can boast he has saved jobs whilst Trump gets “better terms for beef and ethanol.”
