Trump and Starmer's Trade Triumph: A Good Deal for Airplanes, Cars, and More
Trump and Starmer commemorate initial substantial tariff arrangement
It seems like President Trump's claims of global nations clamoring for trade deals with the USA aren't so far-fetched after all. Fueled by reduced tariffs on goods, Britain is set to import airplanes from Boeing, while the US will allow the import of airplane parts from Rolls-Royce. This landmark agreement, the first significant one since Trump's tariff policy, has been celebrated as a victory by both leaders.
At a White House press conference, an excited President Trump declared, "It's a very big deal." He even hinted at more agreements to follow. Meanwhile, British Prime Minister Keir Starmer expressed his enthusiasm over the phone, calling it a "truly fantastic, historic day."
The deal, while not a conventional free trade agreement, serves as a foundation for further negotiations. For starters, tariffs on British steel and aluminum will be completely abolished, while those on US goods will be reduced from 5.1 to 1.8 percent. The US will also reduce its 10 percent tariffs on most export goods to 10 percent for 100,000 vehicles and impose no duties on airplane parts from Rolls-Royce. In return, the UK will import airplanes from Boeing worth around 10 billion US dollars.
Trade between the US and the UK was significant last year, amounting to roughly 370 billion euros. However, about 70 percent of British exports to the US were services, which are tariff-free, while only around 30 percent were goods.
Starmer's Labour Party Under Pressure
Politically, both leaders have been losing ground. After a rapid fall in popularity since the last election, Starmer's government has faced heavy criticism, especially after their poor performance in the recent local elections. Similarly, Trump's economic policies have led to a decline in his popularity in the US.
Despite threats of blanket tariffs worth around 100 billion euros from the EU if no agreement was reached, Trump has yet to engage in negotiations. The deadline for negotiations is currently set for July. On the other hand, Starmer has taken a more friendly approach, presenting Trump with an invitation for a state visit by King Charles III during a visit to the White House in February.
Brussels, however, is pushing for confrontation. The European Commission is preparing further tariffs on US exports and is planning to sue the US over tariffs at the WTO. Additionally, the Commission is considering export restrictions on certain products worth $5.5 billion, including steel scrap and chemical products imported by US companies.
Interestingly, speculation about a dynamic agreement in the area of animal health and food standards could be hindered by potential concessions to the US. However, British food standards will not be lowered, a British government spokesman ensured.
Economically, an agreement with the EU, especially at a summit in London on May 19 with EU Commission President Ursula von der Leyen and EU Council President António Costa, is considered more important for Britain than the deal with the US.
Sources: ntv.de, as/dpa/rts
- USA
- UK
- Donald Trump
- Keir Starmer
- Tariffs
- EU
- Key Focus Areas: The deal has a strong emphasis on agricultural products, non-tariff barriers, and customs processing[2].- Imbalanced Tariffs: Some items will continue to face 10% tariffs, indicating an imbalance in the removal of tariffs[2].- Reciprocity and Fairness: The agreement underscores the importance of reciprocity and fairness in international trade[2].- Market Access: The deal could potentially provide billions of dollars in increased market access for US products in the UK[2].- Economic Benefits*: While specific economic benefits are still being finalized, the deal is expected to be beneficial for both countries by opening up markets and potentially lowering trade barriers[2].
- The employment policy of both the USA and the UK might undergo changes due to the reduced tariffs on goods, as this could potentially increase the import and export of airplane parts from Rolls-Royce and Boeing, affecting the aviation sector's workforce.
- In the context of politics, the deal might put pressure on the UK's Labour Party, led by Keir Starmer, as the agreement seems to favor the US in areas like steel and aluminum tariffs, which could potentially affect domestic industries in Britain.
- The tariff policy, confirmed in this agreement, could play a significant role in the politics of general-news, as it sets a precedent for future trade negotiations, particularly with the EU, where threats of blanket tariffs and WTO lawsuits have been invoked.
- In light of the Whatsapp conversation between Donald Trump and Keir Starmer, discussing the confirmed trade triumph, the employment policy concerning airplanes and cars could face significant changes, potentially leading to increased employment opportunities in these sectors.
