2 months ago
8 
The UK and the US have announced a trade deal that is the first of its kind since President Donald Trump imposed tariffs on all of America’s trading partners.
Prime Minister Keir Starmer and Trump in a phone call on Thursday morning both hailed the agreement as historic, and praised each other for their work in reaching it.
Both leaders acknowledged that the details of the agreement are still being ironed out. Trump said that there ‘will be changes made’, but insisted that it is ‘very conclusive’.
The deal saves ‘thousands of jobs’ across the UK, according to Downing Street. US tariffs on British automobile imports will immediately be reduced from 27.5% to 10% under the deal. Additionally, tariffs on steel and aluminum will be slashed to zero.
A White House fact sheet on the deal stated that the first 100,000 vehicles British manufacturers import to the US each year will be subject to a 10% reciprocal tariff rate, and additional vehicles after that will have 25% imposed. It mentions a ‘new trading union’ for steel and aluminum.
The deal ‘will significantly expand US market access in the UK’ and create a $5billion opportunity for new exports for American farmers and ranchers, stated the White House. That includes more than $700million in exports of ethanol and $250million in agricultural exports like beef.
‘This historic deal delivers for British business and British workers protecting thousands of British jobs in key sectors including car manufacturing and steel,’ stated Starmer.
‘This is jobs saved, jobs won but not job done and our teams will continue to work to build on this agreement.’
Trump announced that the UK ‘will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products’.
‘This is now turning out to be, really, a great deal for both countries,’ stated the president.
Based on experts, here is everything we know so far on how the deal will affect Brits.
How is the deal likely to affect people in the UK?
While the full details are still to be determined and disclosed, it appears to be ‘a positive deal’, said Marley Morris, associate director for trade at the Institute for Public Policy Research in London.
‘On balance, this is clearly a big win, even if some sectors will feel a bit under pressure,’ Morris told Metro on Thursday afternoon.
What does the trade deal mean for beef?
The deal includes reciprocal market access to beef, and British farmers will get a tariff-free quota for 13,000 metric tonnes of the meat.
US Agriculture Secretary Brooke Rollins said that the deal will ‘exponentially increase our beef exports’ and that ‘American beef is the safest, the best quality, and the crown jewel of American agriculture for the world’.
it is likely that more American beef will make its way to the UK.
A reduction in tariffs could ‘absolutely’ lead to lower prices on High Street and supermarkets, Morris said.
‘Of course, by reducing some tariffs, there could be benefits to consumers as well,’ he said.
‘It really depends on what extent exporters… take advantage of reduced tariffs. It could have a positive impact and help to relieve pressure on food prices.’
How will the deal impact workers in key industries?
The deal is also ‘very positive news’ for workers in key industries like steel and carmaking, Morris said.
‘There are reduced tariffs on exports into the US, so there’s significant benefits there, and if you’re working in those industries that will be a big relief today,’ he said.
He added that the agreement ‘will provide greater security for people’s jobs in those sectors’.
Kevin O’Marah, chief research officer at Zero100, a membership-based intelligence company for global operations and supply chain leaders, said the prospects for UK carmakers could be stronger than expected.
‘Luxury car brands like Jaguar Land Rover and Aston Martin should benefit especially, in part because they will have a cost advantage against other luxury imports, and because their customer base in the US is less likely to feel the pain of general inflation or rising layoffs than mid-market or economy car buyers,’ he stated.
How is the deal a win if most tariffs are sticking around?
Trump’s baseline 10% reciprocal tariff rate he announced on Liberation Day in April remains in effect, the White House confirmed.
‘I don’t think that was ever negotiable, it sounds like that is the position that the Trump administration is maintaining with all partners so I think in that sense, the UK played its hand well, did the best it could in terms of securing the tariff reductions on steel, aluminum, cars and the reciprocal deal with beef,’ Morris said.
‘I’m sure the UK would have wanted to go further and reduce the universal tariff and I’m sure it will be pushing the US in the future, but I think this is a good platform in which to build.’
Specifically, being the first to come to a deal with the US puts the UK in a ‘good position’ to limit any future tariffs, he said.
O’Marah called the deal a ‘win for both nations’.
‘For the US, it proves that deals work in the first place, which gives the administration a bit more credibility as it moves forward,’ he stated.
‘For the UK, it’s a chance to role model a Singapore-of-Europe option that could create great opportunity for British business.’
How is the deal likely to affect people in the US?
Meanwhile, the deal will likely affect Americans differently.
Trump’s tariffs policy immediately and continues to leave the US stock markets in flux, and consumers with fears that prices will go up.
‘Certainly in terms of wider trade policy, this is probably more noticeable and significant for the UK than the US,’ Morris said.
‘I don’t think this in and of itself will prevent the wider challenges that the US is currently facing because of the change in tariff policy.’
Get in touch with our news team by emailing us at [email protected].
For more stories like this, check our news page.
.jpg.webp?itok=1zl_MpKg)
Bengali (Bangladesh) · 
English (United States) ·