USA and UK Set to Announce Trade Deal: A Long-Awaited Boost for Businesses
U.S. and U.K. appear set to declare the ending of a trade accord. - U.S. and UK on the brink of unveiling finalized trade deals.
Get ready for some major news! Trump's latest Truth Social post hints at a significant trade agreement with a globally recognized powerhouse, set to be unveiled on Thursday at 10:00 local time (16:00 CEST). This is just the first of many similar agreements, according to the former president. In London, Keir Starmer is expected to provide updates later in the day, hinting at the progress in negotiations with the USA.
The long-standing diplomatic and economic relationship between the USA and the UK has been the foundation of productive conversations between the two nations. In 2024, trade between the two economies was balanced, with Britain exporting goods worth £59.3 billion (€69.7 billion) to the USA, while importing goods worth €57.1 billion from the states. This balanced relationship could have played a crucial role in finally reaching this agreement.
Trump's agenda aims to reduce the USA's trade deficit and bring jobs back home by imposing high tariffs. To achieve this, Trump mandated a minimum tariff rate of ten percent on most imports, which he initially increased to significant surcharges for around 60 countries, only to backtrack just hours later and announce a 90-day "pause." China remains an exception, with tariffs on imports from the People's Republic set at 145 percent, to which Beijing responded with retaliatory tariffs of 125 percent.
Negotiations between the two countries' representatives are planned for the weekend in Switzerland. Economist Jonathan Portes from King's College London believes that any agreement between the two nations will primarily serve to protect existing trade relationships rather than provide a significant boost to the British economy. However, he suggests that the deal would undoubtedly be a relief for businesses due to the potential removal of high tariffs, particularly with regards to cars, steel, and aluminum.
Keywords:
- USA
- Donald Trump
- United Kingdom
- Trade Agreement
- US President
- London
- Keir Starmer
- Trade Balance
- Tariffs
- Diplomatic Relationship
Additional Insights:
- The finalized trade agreement between the USA and the UK, announced on May 9, 2025, includes adjustments to tariffs, opening new market opportunities, and creating an additional $5 billion worth of market access for U.S. exporters like farmers, ranchers, and producers. The U.S. will reduce tariffs on steel and aluminum from 25%, and lower auto tariffs from 25% to 10% on the first 100,000 British vehicles imported to the U.S. However, a 10% tariff on imported goods from most foreign countries remains in place. In return, the UK will ease trade barriers on products including ethanol, beef, and machinery, and will also fast-track U.S. imports through customs inspections. The agreement also includes a $10 billion purchase of Boeing airplane parts and establishes a "secure supply chain" for pharmaceuticals. Some elements of the deal remain to be finalized, but this framework sets the path for a broader trade agreement between the two nations. [Source 1][Source 2]
- The European Parliament will undoubtedly be interested in the details of the trade agreement between the USA and the UK, as it could potentially influence future negotiations and the balance of trade between the EU and these nations.
- Negotiations between the European Parliament, the Council, and the Commission may need to be expedited to ensure that the EU can maintain a competitive position in the global market, considering the - nearly finalized trade agreement between the USA and the UK.
- The European Parliament should carefully evaluate the potential impact of this trade agreement on the EU's finance and budget, particularly in relation to the export of goods and services to the USA and the UK.
- The European Parliament, the Council, and the Commission must consider the implications of the agreement for the EU's general-news, politics, and business sectors, as the deal could significantly alter the economic landscape between the EU, the USA, and the UK.
- In light of the halted negotiations with other world powers and the ongoing trade tensions, the European Parliament may need to reconsider its own deficit reduction strategies and export policies to remain competitive in the global market.
