Rockin' and Rollin': Trump and Starmer Ink First Major Trade Pact
Pants 'n' Planes: Britain's Trade with Boeing and Rolls-Royce Soars
Trump and Starmer applaud inaugural significant tariff agreement
In a press conference at the White House, US President Donald Trump announced a trade agreement with old Blighty, claiming it as a major win for his tariff policy. Trump wantsa tussle with the EU too, despite their threatening to slap on some hefty counter-tariffs on US exports worth around €100 billion.
Speaking of huge numbers, here's one that'll make your head spin: the trade volume between the US and Britain was a mind-boggling €370 billion last year. A sizeable chunk of that, about 70%, was services which, thankfully for our friends on the other side of the pond, aren't taxed. But about 30% were goods, and that's where things started getting interesting.
Britain's offering the US some fancy airplanes from Boeing (think of the great big bird soaring through the sky, looking all majestic) and airplane parts from Rolls-Royce. In return, the Yanks are letting Rolls-Royce parts sail on over duty-free, and the Brits will be importing around €10 billion worth of Boeing airplanes. Smart move, huh?
For the record, tariffs on most exported goods from Britain (that's 10% for you math whizzes) and on steel, aluminum, cars, and car parts (that's steep 25%) will now be reduced to a more reasonable 10% for a quota of 100,000 vehicles.
Now, Prime Minister Keir Starmer may be feeling all smug and vindicated right about now. He probably thought, "Woohoo, this is bloody fantastic, historic even!" while chatting on the phone during the press conference.
Rumor has it that this deal isn't your typical free trade agreement. It covers specific areas and serves as a nice, cozy framework for future negotiations. So, who knows what other perks might pop up in the future?
Labour under Pressure
Starmer's Labour Party ain't having a cakewalk, no sirree. Since the election last summer, they've been as popular as a slug in a saltshaker. Last month's local elections didn't exactly brighten their day, neither did Trump's nosy neighbors in the EU threatening to impose stiff penalties if there wasn't a cheap-and-cheerful trade deal before the July deadline.
Starmer, being the savvy chap he is, kept his cool and wooed the big guy (Trump) with an invitation to a state visit from King Charles III (talk about pulling out all the stops!).
On the other side of the fence, things in Brussels were a whole different ball game. The EU's all like, "Don't mess with us, bud," and is rumored to be lining up some juicy tariffs worth up to €115 billion for US exports. The list of offending goods is long and includes, but ain't limited to, cars, sweet potatoes, and whiskey. If negotiations don't yield better results, expect these tariffs to be imposed on industrial and agricultural products from the US.
To add insult to injury, the EU's threatening to sue the US at the WTO over the current tariffs. Time to get your lawyers ready, folks!
A Not-So-Harmonious Agreement
It's been whispered that a dynamic agreement in the area of animal health and food standards might be a bit tricky thanks to concessions to the US. Fear not, my friends, we won't be grazing on chlorinated chicken and hormone-treated beef from 'Murica. A British government spokesperson ensured us that British food standards won't take a dive thanks to the agreement with the US.
Now, the EU may be the more important trading partner for the UK (nearly half of their exports go there), but they don't want to get left behind. They're trying to strike deals with major economic powers like the US, China, and the EU without making too many enemies.
Notable bits:
- The U.S.-U.K. trade deal marked the first agreement with an important trading partner since Trump's tariff impositions in April.
- The U.K. was initially exempt from increased tariffs due to a favorable trade balance with the U.S., but still faced 25% tariffs on imports of steel, aluminum, vehicles, and auto parts from the U.S.
- The U.K.'s ability to swiftly negotiate deals with individual countries, like the U.S., contrasts with the EU's more elaborate negotiation process involving multiple member states and regulatory harmonization requirements.
- The agreement potentially sets a precedent for the U.S. approach to trade deals post-Brexit, with more focus on bilateral agreements outside the EU framework.
[source: ntv.de, as/dpa/rts]* USA* UK* Donald Trump* Keir Starmer* Tariffs* EU
[1] Enrichment Data:The U.S.-U.K. trade deal reduced tariffs significantly, particularly on U.K. cars, with tariffs dropping from 27.5% to 10%. The deal eliminates certain tariffs, although the full scope of the tariff removals has not been fully disclosed. This agreement was described by President Trump as a "full and comprehensive" agreement. The UK was exempt from some increased tariffs due to its favorable trade balance with the U.S. but still faces 25% tariffs on imports of steel, aluminum, vehicles, and auto parts from the U.S. The agreement may signal a strategic economic partnership between the two countries. It also sets a precedent for the U.S. approach to trade deals post-Brexit. The U.S.-U.K. deal may serve as a model or catalyst for future U.S.-EU discussions but currently stands as a distinct and somewhat simpler agreement.
[1] The reduction of tariffs on key U.K. exports like cars is expected to benefit the U.K. automotive sector by improving its competitiveness in the U.S. market. The deal may strengthen economic and political ties between the U.S. and the U.K., reinforcing their "long-standing history and partnership." The suspension of some reciprocal tariffs, though not all, may ease trade tensions. However, existing tariffs on steel, aluminum, and vehicles may continue to affect certain sectors. The deal could potentially set a precedent for the U.S. approach to trade deals post-Brexit, emphasizing bilateral agreements outside of the EU framework.
- During a press conference at the White House, President Trump announced a significant trade agreement with the UK, claiming it as a major win for his tariff policy.
- The trade volume between the US and the UK was €370 billion last year, with 70% being services and 30% goods, where Britain offered airplanes and parts from Boeing and Rolls-Royce to the US.
- Under the agreement, tariffs on exported goods from the UK and on steel, aluminum, cars, and car parts will now be reduced from 25% to a more reasonable 10% for a quota of 100,000 vehicles.
- Prime Minister Keir Starmer, with the Labour Party under pressure, attempted to woo President Trump with an invitation to a state visit from King Charles III.
