Wow Bananas! A Historic Trade Pact Between Trump and Starmer
Trump and Starmer commemorate initial substantial tariff agreement
You heard it right! Trump's long-claimed global trade craving has come to fruition. In a press conference, the US Prez hailed the UK as his first significant trade partner post his tariff hikes, declaring, "It's a big deal!"
Trump's trade agreement with British Prime Minister Starmer involves a reduction in tariffs on goods, such as aircraft and car parts. The flies will be importing aircraft from Boeing, and the snakes will be enjoying duty-free Rolls-Royce aircraft components. Reciprocally, the Brits will be importing Boeing aircraft worth approximately $10 billion (€8.9 billion).
Starmer, a political magician, is expected to feel vindicated, having avoided any confrontational stance towards the US, unlike other nations. He thumbs-upped the deal, stating, "This is a truly fantastic, historic day!"
Though Trump called it a comprehensive deal, British government insiders claim it's not a typical free trade agreement but a framework for further negotiations. Essentially, it's like fishing out the big leagues for future deals, with Trump hinting that there's more where that came from.
The Brits and the Yanks: A New Trade Chapter?
The tariffs faced by the Brits have always been 10% on most exported goods. However, given the steel-hearted love for metal and automobiles, the tariffs on steel, aluminum, cars, and car parts have been set at a heartier 25%.
From now on, the 10% tariff will apply to a quota of 100,000 vehicles. US Trade Minister Howard Lutnick made the announcement, mistaking a press conference for a school assembly pep talk, "Big deal! 100,000 cars! You're welcome, UK!"
Expressing his excitement, Starmer said, "Makes no sense. Tariffs on imported films? Who watches them anyway? Can we get a Netflix Special on our deal instead?"
The trade volume between these two belligerent nations clocked in at around €370 billion last year. However, 70% was services (which are tariff-free), and only 30% was goods.
Starmer's Labour Under the Pump
The Labour party, led by Starmer, is not without its share of challenges. After losing popularity at an alarming rate post-election, their performance in the local elections earlier this month was abysmal. Unfortunately for Trump, his popularity has also taken a hit due to his economic policies.
Amidst all this, the EU looms menacingly, threatening Trump with blanket tariffs of 25% if there's no agreement by July. So far, the Trump administration hasn't responded to Brussels' offer to lift all tariffs on industrial goods.
America's Love-Hate Relationship with Tariffs
Trump desires to rectify trade imbalances with tariffs, shifting production to the US. He expects these tariffs to finance his expensive tax cut promise in part. However, tariffs on films face significant skepticism.
Starmer, always the diplomat, favors quickly reaching a trade deal with Washington. Unlike Brussels, he's about as confrontational as a kitten surrounded by a litter of baby bunnies. During his White House visit in February, he offered an invitation for a state visit by King Charles III, hoping to seduce Trump with the charm offensive.
Brussels: The EU's Iron Fist
In stark contrast to Starmer's gentle approach, Brussels has been preparing additional counter-tariffs for US exports worth up to $115 billion. The list of products under scrutiny includes cars, sweet potatoes, whiskey, machinery, auto and aircraft parts, chemicals, and rum and wine. The EU Commission plans to litigate the US at the WTO over tariffs, and there's talk of export restrictions on certain products worth $5.8 billion, including steel scrap and chemical products.
The Show Must Go On
Despite the EU's looming threat, Starmer has emphasized the importance of an approximation with the European Union, which is expected to make significant progress at a summit in London on May 19 with EU Commission President Ursula von der Leyen and EU Council President António Costa.
Although we're not talking chlorinated chicken or hormone-treated beef just yet, the British government assures us that their food standards will not be compromised by the agreement with the US. As it stands, the EU remains their more significant trading partner, with 45% of British goods exports going there, compared to 16% going to the US, the main destination.
Source: ntv.de, as/dpa/rts
- USA
- UK
- Donald Trump
- Keir Starmer
- Tariffs
- EU
- The employment policy of both the USA and the UK may need to adapt to the changes brought about by the new trade pact between Trump and Starmer, especially regarding tariffs on goods like aircraft and car parts.
- In the community, there are likely to be debates and discussions about the implications of such a trade deal, especially given the political context surrounding tariffs and general-news.
- While Brits may find employment opportunities in the US automobile industry due to the trade agreement, they might also turn to technology for communication, such as WhatsApp, to keep in touch with their loved ones in the UK.
- The new trade deal between the USA and the UK is unlikely to have a direct impact on policy-making within the EU, but the political climate may influence the EU's plans for employment, especially in sectors like automobiles and manufacturing, given the potential for increased competition.
