"A Momentous Step Forward: US-UK Trade Deal"
Trump agrees on commercial accord with Britain
In an exciting turn of events, the US and UK have sealed a significant trade agreement, as announced by former US President Donald Trump on his own social media platform, Truth Social. The deal, dubbed a "full and comprehensive" agreement, is set to boost ties between the two nations. Trump proclaimed this to be a major victory, and he will hold a press conference in the Oval Office at 10 am local time (4 pm CEST).
"This is going to be a massive and exhilarating day for the United States of America and the United Kingdom," Trump wrote, hinting at a potential beginning of a series of similar agreements.
Details about the agreement were initially scarce. Previous speculation pointed towards the UK securing some relief from Trump's tariffs, especially for the auto industry which heavily depends on exports to the US. In return, concessions in the areas of agricultural products and digital services tax were anticipated. However, reports suggest that these measures might only apply for a limited time and to specific economic sectors.
As of now, the British face US tariffs of 10% on most exports, but 25% on steel and aluminum and on cars and car parts. Following the extensive and long-term free trade agreement signed with India, UK Prime Minister Keir Starmer described it as a new era of trade.
With this new agreement with the US, it remains to be seen if it may hinder a possible reconciliation with the EU. Reports indicate that US food standards may not be recognized, but assurances have been made that there will be no chlorinated chicken and hormone-treated beef in British supermarkets.
As for agricultural products, the UK will create a preferential duty-free quota of 13,000 metric tons for US beef. Additionally, the agreement generates more than $700 million in ethanol exports and $250 million in other agricultural products like beef, significantly improving US market access in the UK. The deal also aim to enhance market access for US agricultural products by reducing non-tariff barriers.
Politically, the US-UK summit on May 19 is anticipated to kickstart a deepening of their relationship, as Starmer, EU Commission President Ursula von der Leyen, and EU Council President António Costa aim to work towards a dynamic agreement in the area of animal health and food standards.
Sources: ntv.de, spl/dpa/DJ
Key Provisions:
- Tariffs (Steel & Cars): Elimination of tariffs on US imports of steel from the UK. Implementation of a 10% tariff on 100,000 vehicles for UK automotive imports.
- Agricultural Products: Creation of a preferential duty-free quota of 13,000 metric tons for US beef and more than $950 million in ethanol and other agricultural products exports.
- Digital Services Tax: No specific concessions mentioned regarding digital services taxes, but collaboration on intellectual property and other areas.
- Other Provisions: Creation of a $5 billion opportunity for new US exports to the UK, improved competitiveness for US firms in the UK’s procurement market, and enhancing the competitiveness and securing the supply chain of US aerospace manufacturers in the UK.
- The US-UK trade agreement, announced by Donald Trump, covers numerous sectors, including the bypassing of US tariffs on British employment in the aerospace industry, a move expected to boost business competitiveness and employment opportunities.
- With the new trade deal, both countries aim to establish a stronger financial relationship, as the US offers concessions in the agricultural sector, such as a preferential duty-free quota for 13,000 metric tons of US beef, potentially impacting the UK's general-news, business, politics, and community policy landscapes.
