Hot off the Press: Trump and Starmer Slap Hands on Record Trade Deal!
Trump and Starmer commemorate initial significant tariff agreement
A feverish Trump has declared a monumental victory with the sealing of the Economic Prosperity Deal (EPD) between the US and the UK. In essence, this agreement signifies a significant edging down of tariffs on various trading goods. Britain is about to score some swanky Boeing aircraft, whereas the US is licking its chops at the prospect of importing prime Rolls-Royce airplane components free of charge.
The flamboyant Trump celebrated this whopper of a deal at a grandiose press conference, emphatically commenting, "This is a Big League win, folks! Mark my words—more such deals are on the horizon!" British Prime Minister Starmer echoed these sentiments, gushing, "What an outstanding day for us all! The UK is officially on the global trade map!"
This peppery pact with the British marks the first significant trade agreement from the US since Trump's tempestuous introduction of tariffs back in April. His stroppy demeanor notwithstanding, it seems Trump's tactic of ramping up tariffs has somehow yielded tangible results.
The Nitty-Gritty Details
Dynamically, British goods that had previously been faced with a 10% tariff will now pay just 1.8% tax. Additionally, tariffs on agricultural steel and aluminum will be abolished entirely. On the American side of the bargain, 100,000 vehicles will enter the US at a 10% tariff, along with associated auto parts. Rolls-Royce airplane components will, however, enjoy duty-free access into the American market. Britain will also import $10 billion worth of Boeing aircraft.
The trade turnover between the US and the UK hovers around the staggering €370 billion mark, with a significant chunk coming from service-related transactions. Consequently, only about 30% of the total trade value can be attributed to actual goods.
Back-to-Back Agreements
This deal comes hot on the heels of Starmer's previous agreement with India, which aims to boost bilateral trade by a staggering £25.5 billion (approximately €30 billion) by 2040. It's the most significant trade deal since the UK's departure from the European Union, representing a masterful play by the British Prime Minister to secure lucrative economic ties with world powers.
Trade Troubles for Starmer and Trump
Despite the celebratory atmosphere, both leaders are under immense pressure domestically due to their respective economic policies. The EU has threatened the Trump Administration with tariffs totaling €100 billion if a deal remains elusive. The deadline is currently set for July, and as of yet, there's been no response from the Trump Administration regarding Brussels' proposal to mutually lift all tariffs on industrial goods.
Trump's impudent tariffs on films face widespread derision, with many questioning the wisdom of such a move. The tariffs are intended to address alleged trade imbalances and encourage domestic production—all the while partially financing Trump's pricey tax cuts.
Starmer has been lauded by Trump and the press alike for his persistence in securing this deal. Unlike the EU, he didn't threaten counter-tariffs, instead opting for a more charm-offensive approach to winning Trump over. During his visit to the White House, he presented Trump with an invitation to a state visit by King Charles III.
EU Chomps at the Bit
The response in Brussels has been very different, with the Commission preparing further tariffs on US exports worth up to $114 billion. These additional duties could potentially impact various products, from automobiles and aircraft parts to chemicals, agricultural goods, and spirits. If negotiations with Washington fail to produce a solution, the EU plans to take the US to the WTO over the tariffs.
In the event that the tariffs are imposed, the Commission will also consider export restrictions on certain products worth $5.8 billion. These exports could include steel scrap and chemical products that are currently imported by American companies.
A Sweet Swizz with Switzerland and China
This week has seen significant talks between the US, China, and Switzerland on potential high-level tariff agreements. The deal with Starmer represents a symbolic success for him, but economically, the closer collaboration with the European Union remains more crucial. A substantial progress is expected at a summit in London on May 19 with EU Commission President Ursula von der Leyen and EU Council President António Costa.
No Chlorine Chickens or Hormone-Treated Beef for You!
There have been whispers that the agreement could make it more difficult to resolve issues regarding animal health and food standards, especially when it comes to concessions to the US. However, rest easy: you won't find chlorinated chickens or hormone-treated beef on the shelves of British supermarkets anytime soon. A British government spokesperson was quick to clarify that the agreement would not compromise British food standards.
Sources:- ntv.de- as/dpa/rts
- USA
- UK
- Donald Trump
- Keir Starmer
- Tariffs
- EU
- The Economic Prosperity Deal (EPD) between the US and the UK, a significant reduction of tariffs on trading goods, has been marked as a victory for both Donald Trump and Keir Starmer's employment policies.
- Despite widespread criticism, tariffs imposed by Trump on films have been deftly navigated by Keir Starmer, who managed to secure a record trade deal with the US without threatening counter-tariffs.
- The Brits are likely preparing for politics to shift as Trump's policy of ramping up tariffs seems to yield tangible results, as evidenced by the recent EPD and potential future deals.
- WhatsApp discussions among trade officials are likely buzzing with discussions about the impact of the EPD on the UK's community policy, as the agreement could potentially affect food standards and trade relations with the EU.
