US has achieved the UK the first trade deal since Trump announced duties
US President Donald Trump and British Prime Minister Kir Starrmer have announced on Thursday a « breakthrough » through an agreement on trade, which leaves in force 10% duty on goods imported by the UK (eg cars;
The agreement, announced by Trump by the Oval Cabinet, has been the first since Trump sparked a world trade war with a series of duties on commercial partners after returning to the White House in January.
« It is opening a huge market for us, » said the US leader. « It’s a truly fantastic, historic day, » Starmer said in a teleconferences conversation.
The United States is under pressure from investors to conclude de -escalation of customs war after Trump’s chaotic policy has often overturned world trade with friends and enemies and threatened to raise inflation and begin recession.
High-ranking US officials have held a series of meetings with trading partners since on April 2, the President imposed 10% duties on most countries, along with higher rates for many trading partners, which were then stopped for 90 days.
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The United States also imposed 25% duties on cars, steel and aluminum, 25% duties on Canada and Mexico and 145% duties on China. US and Chinese representatives should have talks in Switzerland on Saturday.
Warm relationship
As the British economy is struggling to grow, duties have further increased the pressure on its government.
Jaguar Land Rover has stopped its supplies to the United States for a month and the government was forced to take control of British Steel to continue the company to work.
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Although striving for a deal with the United States, the UK has refused to reduce its nutritional standards that are closely linked to the European Union. However, the British farm union said that some US producers who do not use growth hormones or antimicrobial washes could gain more access to the market.
The status of the ten percent « basic » rate was unclear, as was the threat of the myth of the pharmaceutical industry, which could harm Astrazeneca and GSK.
The initial news of the message led to a 10% increase in Aston Martin’s luxury car manufacturer, while British retailers with US activities, including JD Sports and Primark Ab Foods owner, also increased.
Tough commercial acrobatics
The Starrmer government seeks to build new trade relations after Brexit with the US, China and the EU without approaching so much to one block as to anger the others.
Economists and one CEO of a FTSE 100 company have said that the immediate economic impact of the duties deal is likely to be limited, but that trade agreements as a whole would help with long -term growth. The UK has concluded a free trade agreement with India this week.
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There are also internal political risks.
Studies have shown that the government remains very unpopular, which makes every step in reducing taxes on multinational technology companies high risk.
The UK’s digital tax tax, accumulated 2% of the UK revenue for online markets, search engines and social networking platforms, was introduced in 2020 in response to protests against major technology companies.
About 800 million pounds ($ 1.1 billion) were expected to be raised this year, but companies like Google and Amazon transferred costs to customers respectively through advertising fees and higher sales fees.
« The American, Indian and other deals we can make will be really important for the UK’s long -term economic health, but don’t expect them to lead to euphoria overnight, » said the CEO who requested anonymity.
