Bustin' Bak Where We Left Off: Trump and Starmer's "Legendary" Trade Pact
Trump and Starmer declare a noteworthy trade agreement - Trump and Starmer forge historic trade accord
Here's the lowdown on that Trump-Starmer trade deal, y'all:
Trump claimed this bad boy opens the UK market for US ag products like beef, ethanol, and a bunch of other stuff worth billions. Festival-style celebrations ensued. Boeing is gonna receive $10 billion (roughly 8.8 billion euros) from new British orders, if you're keeping track.
Starmer's office stated that the deal will see US car tariffs (currently at 27.5%) slashed all the way down to a cool 10%. Starmer called it a sick win, while US Trade Minister Howard Lutnick confirmed an exception for Rolls-Royce, who are happy to let their engines and aircraft parts in duty-free.
Peter Mandelson, the UK's Ambassador to the U.S., described the deal as a starting point. It's gonna need some fine-tuning, he emphasized. Trump initially called it "comprehensive and complete," but at the White House event, he clarified that it ain't like finalized Final Fantasy or nothing. That's 'cause trade agreements are complicated beasts that take forever to enforce, usually taking months, if not years, to finalize.
Trump's got his sights set on the EU next. He already chatted with EU Commission President Ursula von der Leyen, who's working on behalf of the EU. Trump thinks von der Leyen is a banger, while the EU had threatened the US with tariffs on cars and aircraft if negotiations tank.
Trump's also gunning for a deal with China. A retaliation-filled smackdown is planned in Switzerland this weekend. The US has imposed a 145% tariff rate on the People's Republic, while China has responded with a 125% tariff.
As for the timing of the deal, Trump thinks it's all groovy, considering it's May 8, aka Victory Day in World War II. The US President renamed May 8 as "Victory Day" to celebrate the US Army's fabulousness. Trump used to refer to April 2 (his 'Liberation Day') as a day for celebrating trumping other nations with unfair trade deals. Economists think he's stirring up global economic chaos and inflation, but who cares about 'em?
On a Technical Note:
- The deal eliminates tariffs on steel and aluminum imports between the two countries, which were previously subject to a 25% tariff in the US.
- A 10% tariff quota has been created for 100,000 UK automotive imports, along with an associated quota on attendant auto parts.
- The UK offers a duty-free tariff rate quota of 1.4 billion liters for U.S. ethanol, which considerably increases market access for this product in the UK.
- Modified reciprocal tariff treatments have been agreed on certain key UK imports to the US, aligned with shared national security priorities.
- Contingent on future US security reviews, the deal intends to negotiate significantly preferential treatment for pharmaceuticals and pharmaceutical ingredients from the UK, subject to UK compliance with supply chain security requirements.
- The deal is expected to generate around $5 billion in new export opportunities for US farmers, ranchers, and manufacturers.
This agreement marks a crucial step in US-UK trade relations, removing longstanding market barriers and establishing a framework for continued cooperation and economic growth between the two nations.
- The historic trade agreement announced by Donald Trump and Keir Starmer, the US President, and UK's Labour leader, respectively, includes a reduction in US car tariffs from 27.5% to 10%, a significant decrease.
- In addition to this, the deal also sees an exception for Rolls-Royce, allowing their engines and aircraft parts to enter the US duty-free.
- Further, the agreement eliminates tariffs on steel and aluminum imports between the two countries, which were previously subject to a 25% tariff in the US.
- Beyond the UK, Donald Trump has also expressed interest in pursuing trade deals with the EU and China. The ongoing trade dispute with China is set to be addressed in a planned meeting in Switzerland this weekend.
