Unfiltered, Unrestricted Update: Trade Pact Between USA and UK Officially Announced
United States and United Kingdom intend to announce completion of trade agreement - US and UK brink of declaring wrapped-up trade treaties.
Got a scoop? Trump's spilling the beans about a major trade deal with a top-tier nation through his Truth Social platform. He's calling it a game-changer, set to be unveiled today at a 10:00 local time press conference. Keir Starmer, the UK's Prime Minister, promises to weigh in on the deal's progress during his afternoon briefing.
Trump's been chatting with Starmer about the fruitful economic conversations between the allies, boosting their centuries-old special relationship. The US and UK have been trading each other's goods fairly evenly—Britain shipped out goods worth £59.3 billion (€69.7 billion) to the US in 2024, while importing goods worth €57.1 billion from the states. This balance might have played a part in sealing the deal.
Trump's been barking about reducing the US's trade deficit and bringing jobs back to the states by slapping hefty tariffs on imports. Apart from a 10% base tariff on most foreign goods, he's declared an additional 145% tariff on Chinese products—a move that's left Beijing retaliating with a 125% tariff on US imports. Now, reps from both countries are locking horns in Switzerland to discuss potential negotiations.
According to economist Jonathan Portes from King's College London, the deal is more about damage control than a substantial boost to the British economy. It'll serve as some much-needed relief for businesses, nonetheless. Although the UK's managed to dodge the 25% tariffs on cars, steel, and aluminum, it might not be prepared for the new market dynamics once the trade pact is in place. The US is a crucial market for manufacturers.
Here's a sneaky peek at what's in the agreement:
- Reduced auto tariffs from 25% to 10% on the first 100,000 British vehicles imported into the US
- Wider market access for US goods worth $5 billion, including agricultural products, machinery, and manufactured goods
- A $10 billion Boeing airplane parts purchase agreement
- A secure pharmaceutical supply chain provision
- Swift customs inspections for US imports
This initial deal paves the way for a broader trade agreement, with some fine details still up in the air. Keep your eyes peeled for more developments!
- USA
- Donald Trump
- UK
- Trade Agreement
- Truth Social
- Keir Starmer
- Britain
- Tariffs
- China
- Trade Barriers
- Steel
- Aluminum
- Market Access
- Boeing
- Pharmaceuticals
- Customs Inspection
- The European Parliament is closely monitoring the developments in the trade pact between the USA and UK, particularly as it pertains to potential impacts on global market dynamics.
- In negotiations regarding trade barriers, both the Commission and the Council of the European Union are drafting potential responses to counteract any increase in tariffs on imports from the EU originating from the USA.
- Some European politicians have expressed concerns that a pause in finance assistance to certain businesses could arise if the US-UK trade deal leads to a shift in trade policies, potentially affecting overall business and politics in the European region.
- Amidst the general news of the announced trade pact, economists in the European Parliament are assessing its possible effects on the EU's export deficit, considering the booming business between the UK and the USA as outlined in the agreement.
- As part of its ongoing efforts to address the global trade landscape, the European Parliament is examining potential strategies to maintain the export balance and preserve jobs within member states, keeping a watchful eye on the trade relations between the USA, UK, and other world economies.
