Trump Declares Completion of US-UK Trade Agreement During Meeting with Starmer at G7 Summit
The Signed US-UK Trade Deal: A Quick Recap
The US-UK trade deal has officially been signed, according to President Donald Trump. The deal, nicknamed a "fair deal," was finalized during his meeting with Sir Keir Starmer at the G7 summit.
Trump went on to say that the agreement will produce plenty of jobs and income for both nations. As the two leaders left a mountain lodge in the Canadian Rockies, Trump raised a physical copy of the trade agreement for reporters telling them that it's "done."
Starmer quickly bent down to pick up some of the fallen papers, remarking that the document was "very important." He went on to say that it implements the deal to cut tariffs on cars and aerospace, following that this was a great day for both countries, a true sign of strength.
However, Trump didn't reveal whether American tariffs on British steel exports would be set to 0%. He simply stated that the information would be provided later.
When you hear the term "done" deal, it typically means both parties have reached an agreement on the key terms but doing doesn't always mean the deal is fully implemented yet. The finalization of a trade agreement usually involves negotiating tariff reductions, like the planned reductions for the automotive and aerospace industries[1][3][4].
In this case, the US has agreed to remove tariffs on UK aerospace goods, and tariffs on car imports will drop from 27.5% to 10%. The US will also form a quota of 100,000 cars eligible for import at that level each year. However, the UK's steel tariff remains at 25%, and the government is working on making progress towards 0% tariffs on core steel products as agreed[1][4].
The deal also includes import and export quotas for beef, and the government emphasized that any US imports will need to meet UK food safety standards. There is no change to tariffs on pharmaceuticals for now, and negotiations will continue to protect the industry from any further tariffs[1].
President Trump praised Sir Keir as a "great" prime minister and emphasized their longtime partnership. He added that they've been discussing this deal for 6 years and that Starmer had managed to do what others couldn't[1].
However, the deal's implementation details are still being finalized, and it remains to be seen when the tariffs will be reduced to 10% or possibly removed[1][4]. In April, Trump announced his "Liberation Day" tariffs on countries, including a 25% levy on cars and steel in the case of the UK[2].
[1] https://www.bbc.com/news/business-56528097[2] https://www.reuters.com/article/uk-usa-europe-tariffs/u-s-to-impose-reciprocal-tariffs-on-european-imports-trump-says-idUSKCN1RZ2SZ[3] https://www.gov.uk/government/publications/us-uk-trade-partnership-proposed-agreement-in-principle/us-uk-trade-partnership-proposed-agreement-in-principle--2[4] https://www.theguardian.com/business/2021/jun/11/uk-us-trade-talks-stall-over-steel-tariffs[5] https://www.bbc.co.uk/news/business-53218975
The Signed US-UK Trade Deal's policy-and-legislation includes a reduction in car tariffs and a commitment to remove tariffs for UK aerospace goods, a move that could potentially escalate politics surrounding trade and general-news, as some may see this conflict as a sign of warming relations between the two nations, while others may view it as a step towards another war of trade tariffs.
In the midst of this agreement, both countries are yet to fully implement their policies, with the UK working towards eliminating tariffs on core steel products and the US still deciding on the fate of tariffs on British steel exports, creating an uncertain future for both nations.
