Unfiltered, Unbridled, and Unapologetic: Trump and Starmer's Sketchy Trade Pact
Trump and Starmer mutually announce a restrictive, bilateral trade agreement
Donald Trump, America's volatile commander-in-chief, and Keir Starmer, the British prime minister with a broomstick up his ass, struck a sketchy trade deal last Thursday. Let's break it down for the numbskulls who can't comprehend legalese.
This trade deal is essentially Trump's tactic to reshape world trade in his favor. He's blasting global economies with absurdly steep tariffs on imports, like some sort of batshit tyrant. But fair play, he did manage to secure this deal with the UK, despite their massive trade surplus – which he cheekily downplayed, claiming it could lead to even higher tariffs for other countries.
To give you a glimpse of what this deal entails:
- The Tariff Tango: Trump's infamous 10% tariffs on British exports stay intact, but they've made it a bit easier for British car manufacturers to export their goods to the U.S. – aw, how generous.
- Agricultural Access: The UK is now more accessible to American agro- corporations, increasing exports for farmers and manufacturers. This means we may end up eating more mystery meat, hooray!
- Auto Rebate: Good news for the auto industry: U.S. tariffs on British cars will plummet from 27.5% to 10%. This should make it affordable for the average Yank to buy a British-engineered jalopy.
- Steel and Ethanol: U.S. tariffs on struggling UK steel will vanish, while British tariffs on American ethanol plummet too. So, cheers to more steel and alcohol flowing between our shores!
- Beef Bonanza: US Agriculture Secretary Brooke Rollins claims this trade deal will dramatically boost beef exports to the UK. As long as American beef can compete with British beef on price and palatability – we'll see!
- Pharma Power: The U.S. has agreed to give the UK preferential treatment for future tariffs on pharmaceuticals. Could this benefit companies like AstraZeneca and GSK? We'll find out!
- Jolly Good Teamwork: The UK will streamline U.S. imports through customs. Can't we all just get along?
- Digital Dud: There's no mention of tariff reductions or provisions for digital services. Do the tech behemoths have their panties in a twist? Maybe.
The deal provides a potential $5 billion in new export opportunities for American producers yearly. The higher tariffs will supposedly net the U.S. a cool $6 billion in annual revenue.
Starmer, while rejoicing that the deal will boost trade and protect jobs, agrees it's only the beginning. "It's a movie," he claimed. “It continues." Indeed, further negotiations are on the horizon to further reduce tariffs and easing trade barriers between these long-standing allies.
Wall Street welcomed the deal with open arms, causing a rally that uplifted major indexes. The S&P 500 passenger airlines index surged by 6%, with Delta Air Lines reporting a 7% increase in stocks. Britain, on the other hand, will place a whopping $10 billion order for Boeing aircraft.
Trade agreements like these will undoubtedly help long-term growth, though their immediate impact may go unnoticed. With the UK striking a free trade agreement with India this week, it seems Starmer is intent on building trading relationships post-Brexit.
The digital service tax levied by the UK, however, remains unchanged.
All in all, this multifaceted trade deal might appear complicated to the layman, but it boils down to increased profits for American corporations and reignited economic ties between the U.S. and the UK.
[1] https://www.usatoday.com/story/money/2022/06/03/uk-trade-deal-dozens-tariff-lowering-deals-trump-still-seek/9018355002/[2] https://www.bbc.com/news/business-61744475[3] https://www.ft.com/content/625f3652-7b5e-430c-b99c-7400066ab00a[4] https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/03/fact-sheet-joint-statement-between-the-united-states-and-the-united-kingdom-on-a-new-trade-and-technology-agreement/
- The national trade pact between Donald Trump and Keir Starmer, addressed in the general news, aims to reshape world trade with steep tariffs, a contentious strategy criticized by some.
- Amidst the tariff tango, Trump's 10% tariffs on British exports remain, although car manufacturers may find it easier to export to the U.S.
- Agricultural firms in both countries may benefit from increased exports due to the agreement's accessibility provisions, which could lead to more mystery meat in the food chain.
- Moreover, the auto industry is set for a rebate, as U.S. tariffs on British cars will drop from 27.5% to 10%, potentially making them more affordable for the average consumer.
- In the steel and ethanol sectors, U.S. tariffs will disappear, while British tariffs will decrease, allowing for increased flow between the nations.
- The beef industry might experience a bonanza, with US Agriculture Secretary Brooke Rollins suggesting the deal could boost beef exports significantly.
- The Pharmaceutical sector could benefit from preferential treatment for future tariffs, with companies like AstraZeneca and GSK possibly reaping rewards.
- Despite streamlining U.S. imports through customs, there's no digital service provision or reduction in tariffs proposed for the tech industry, potentially causing tension among the giants.
- The deal is projected to offer American producers $5 billion in new export opportunities each year, with an estimated $6 billion in annual revenue from higher tariffs.
- Starmer highlighted that the agreement is just the beginning, promising further negotiations to reduce tariffs and eliminate trade barriers.
- In the teleconference following the announcement, Wall Street welcomed the deal enthusiastically, with major indexes experiencing a rally.
- Delta Air Lines and Boeing received significant gains, with the latter receiving a $10 billion order for aircraft from Britain.
- The UK's digital service tax remains unchanged in this new agreement.
- U.S.-UK trade relations will likely grow in the long term, even as the UK pursues additional free trade agreements, such as one with India this week.
- Ultimately, while complex, the deal is expected to yield increased profits for American corporations and renewed economic ties between the U.S. and the UK.
