Trump Slated to Unveil Significant Trade Deal with UK - First of Many announced via Truth Social
The United States and the United Kingdom may be set to reveal a finalized trade deal. - U.S. and UK seemingly on the verge of disclosing finalized trade accords.
Get ready for some major dealings! According to Trump's Truth Social post, he's set to spill the beans on a noteworthy trade agreement with a powerful, esteemed nation on Thursday, 10:00 AM local time. He's hyping it up as the "first of many" such agreements. A press gathering is scheduled at that time. Over in London, Prime Minister Keir Starmer is planned to speak on the progress of the discussions with the USA during the day.
Trump and Starmer have a historical rapport, talking up productive negotiations between the two nations. The USA and the UK have a diplomatic and economic "special relationship."
Trade between these two powerhouses is pretty evenly balanced, with Britain exporting goods worth £59.3 billion (€69.7 billion) to the USA in 2024 and importing goods worth €57.1 billion from there. This balanced exchange could help in sealing an agreement. Trump's primary objective is to cut down the trade deficit of the USA and create jobs through his high tariffs.
In a surprising move, Trump announced a base 10% tariff rate for nearly all imports from almost all trading partners. Initially, he imposed even steeper surcharges on around 60 countries, but hours following the implementation, he retracted his decision and announced a 90-day "pause."
China isn't exempt. The tariff on imports from the People's Republic to the USA now stands at a hefty 145%. Beijing retaliated with counter tariffs of 125%. Representatives of both nations are set to converge in Switzerland over the weekend to mull the idea of starting negotiations.
Economist Jonathan Portes of King's College London expressed that any agreement with the USA would be "more about damage control than a real boost for the British economy." Regardless, "it will undoubtedly prove a relief for businesses," he noted. As it stands, the UK hasn't entirely avoided the tariff hammer - a 25% surcharge still applies to cars, steel, and aluminum, including British products. The USA holds a significant market share for manufacturers.
Notable Insights:
Trump's forthcoming trade agreement with the UK includes:
- The reduction of tariffs on steel, aluminum, and British vehicles to 10%
- The removal of the 10% tariffs imposed last month on foreign goods
- The easing of trade barriers by the UK on ethanol, beef, machinery, granting the USA an extra market access worth $5 billion
- The securing of a $10 billion purchase of Boeing airplane parts by the USA
- The establishment of a "secure supply chain" for pharmaceuticals
- The fast-tracking of US imports through customs inspection for smoother trade flows
The agreement details still require finalization, with the deal paving the way for a broader trade agreement between the two nations in the future.
- The United States and the United Kingdom are set to reveal details of a significant trade agreement on Thursday, with a press conference planned, following Trump's announcement of the deal as the first of many.
- Prime Minister Keir Starmer in the United Kingdom will address the progress of negotiations with the United States during the day.
- Trade between the United States and the United Kingdom is fairly balanced, with Britain exporting goods valued at €69.7 billion to the United States in 2024 and importing goods valued at €57.1 billion from there.
- Trump has announced a base 10% tariff rate for nearly all imports from almost all trading partners, including a pause on the 10% tariffs imposed last month on foreign goods.
- In an expected move, economist Jonathan Portes of King's College London has expressed that any agreement with the United States would be more about damage control than a real boost for the British economy, but it will undoubtedly prove a relief for businesses.
