Hot Off the Press: Trump and Starmer Swap Handshakes On Transatlantic Trade Victory
Trump and Starmer commemorate their initial significant tariff agreement
Trump's unyielding diplomacy seems to have paid off as the first significant agreement after his tariff blitzkrieg is finally a reality. The Brittish government agreed to cut tariffs on American imports, welcoming Boeing aircraft and permitting duty-free import of aircraft parts from Rolls-Royce.
"It's a colossal win," exulted Trump during a White House press conference, eyeing potential deals with the EU, despite Brussels' gloomy threats of $100 billion in counter-tariffs on US exports.
British Prime Minister Keir Starmer eyed this venture as a strategic triumph, echoing, "What a colossal day for our nation!" amidst the conference call.
The US-UK pact is no ordinary free trade agreement; it's a preliminary groundwork for further negotiations, focusing on specific sectors and goods. To date, British exports have had to succumb to a 10% tariff on most goods, skyrocketing to 25% on materials like steel, aluminum, autos, and their components. This hefty burden now lessens to a reduced tariff of merely 10% on a quota of 100,000 vehicles or more. Astonishingly, aircraft parts from Rolls-Royce will be eligible for duty-free import into the US.
In return, Britain anticipates purchasing around $10 billion worth of Boeing airplane components, reducing tariffs on American goods from 5.1% to a paltry 1.8%. British steel and aluminum tariffs will be wiped out altogether.
The economic interplay between the US and UK totaled around $370 billion last year, with 70% of British exports to the US consisting of services unaffected by tariffs. Approximately 30% were exposed to these charges.
Meanwhile, Starmer presents another banner announcement following a comprehensive deal with India recently, forecasting an additional £25.5 billion ($30 billion) in bilateral trade by 2040. Britain aims to strike strategic commercial relationships with world powers like the US, China, and the EU without provoking their displeasure.
The Labour Party: Under Siege
Starmer's government has faced mounting political pressure, losing popularity swifter than any other UK administration post-election. The latest local elections saw the Labour Party receiving a grueling blow. Similar sentiments have been echoing from the US public disgruntled with Trump's economic policies.
In the face of EU threats to slap 25% tariffs on US goods by July, the Trump administration has yet to respond positively to Brussels' proposition for the mutual removal of tariffs on industrial goods.
No big deal Trump controversially mooted import taxes on theatrically produced films. The US President's desire for rectifying purported trade imbalances and laser-focusing production transitions to American soil, via tariffs, faces a barrage of criticism.
Contrastingly, Starmer has consistently emphasized the necessity of swiftly forging a pact with Washington. Unlike the EU's bulwark stance, the Brits avoided threatening counter-tariffs and undertook a friendly charm offensive led by Starmer. During a White House visit in February, he extended an invite to King Charles III for a state visit to the US.
EU Taking a Hardline Stance
The EU Commission remains adamant, planning retaliatory tariffs on US exports worth up to $115 billion. The list includes industrial and agricultural goods such as cars, sweet potatoes, and whiskey. If diplomatic negotiations yield no results, additional tariffs could target machinery, auto, and aircraft parts, chemicals, and rum and wine. The Brussels bureaucracy is also prepared to sue the US over existing tariffs at the World Trade Organization (WTO).
The EU Commission has additionally considered enforcing export restrictions on selected products worth $5.8 billion if the standoff persists. These include steel scrap and chemical products that US companies continue to import.
In the meantime, US-China elevated their talks to a high-profile meeting in Switzerland this week, potentially signaling a possible trade breakthrough. However, the significance of the US-UK trade deal sees Starmer in a relatively strong bargaining position vis-a-vis the EU summit.
There are whispers about a dynamic agreement in animal health and food standards, but British supermarkets can expect no chlorinated chicken or hormone-treated beef, as per the British government's assurance.
Source: ntv.de, as/dpa/rts
- USA
- UK
- Donald Trump
- Keir Starmer
- Tariffs
- EU
- The employment policies in the community have been a hot topic, given the ongoing tariff negotiations between Trump and Starmer, particularly regarding import duties on Boeing aircraft and aircraft parts from Rolls-Royce.
- In the typical political arena, both Donald Trump and Keir Starmer have employed different tactics in their discussions about tariffs, with Trump embodying a more confrontational approach and Starmer adopting a friendlier charm offensive.
- The announcement of the US-UK trade deal has significant implications for employment policies, as it includes reduced tariffs on American goods and predictions of increased British exports to the US.
- Despite the ongoing tariff discussions and potential counter-tariffs, the general news suggests that both the US and EU are exploring other avenues for collaboration, such as a possible dynamic agreement in animal health and food standards between the UK and US.
