The Scoop on UK-US Trade: A Quick Update
UK Trade Minister set for talks with USTR Greer over enacting tariff agreement
Breaking Trade News 📢 UK-US Trade 🇬🇧🇺🇸 Politics 🗽 Economics 💼
Sources from London report that Britain's trade minister, Jonathan Reynolds, will huddle up with U.S. Trade Representative Jamieson Greer on Tuesday, delving into the nitty-gritty of implementing a trade deal. This meeting follows the announcement of fresh U.S. tariffs on steel, posing a challenge to the already intricate deal.
Reynolds will revisit recent deals with his counterparts from the U.S. and EU, trade powerhouses for the UK, during a three-day jaunt to Paris and Brussels this week. The recent accords were political pacts, lacking formal details. The implementation aspect remains uncharted.
The agreement struck last month between Starmer and Trump included a commitment to decrease tariffs on British automobile and steel imports to the States. However, the delayed implementation could result in tariffs escalating before they diminish. Last week, Trump escalated the tariffs on imported steel from 25% to a hefty 50%, with UK Steel anticipating British manufacturers to bear the brunt of this shock, deeming it a crippling blow to the industry.
The UK is currently holding discussions with the United States about the repercussions of the recent tariff announcement before Reynolds' encounter with Greer to figure out the implementation timelines of the bilateral agreement in Paris. Reynolds, in an official statement, expressed his expectations for a better trading environment for UK businesses and exporters, aiming for a continuous evolution of the UK’s alliances with G7 allies and EU counterparts.
Reynolds will also engage with Indian Minister of Commerce Piyush Goyal to discuss a recently negotiated Free Trade Agreement, yet to undergo legal finalization and ratification in both countries, potentially taking several months. Post diplomatic dates in Paris, Reynolds will confer with EU trade commissioner Maros Sefcovic.
Britain and the EU are working towards concluding talks to streamline customs procedures for their food trade. While details of the plan remain elusive, the deal's forthcoming implementation has prompted Britain to abandon border checks on fruit and vegetables imported from the EU, initially due to take effect in July.
Sources: MarketWatch, Reuters, Bloomberg
Trade Details
The UK-US trade deal, announced on May 8, 2025, seeks to foster economic growth and reinforce bilateral ties. Here’s the lowdown on the key aspects and the current state of tariffs for steel and cars:
Current Scenario and Keys Points
- Market Share Expansion: The deal opens up a $5 billion expansion opportunity for U.S. exports, particularly benefiting sectors like ethanol, beef, and aviation components.
- Barriers Removal: The deal attempts to eradicate numerous discriminatory non-tariff barriers, augmenting U.S. trade competitiveness.
- Intellectual Property, Labor, Environment: The agreement upholds high-standard commitments in these areas.
- Aerospace Industry: It guarantees preferential access for U.S. manufacturers to high-grade UK aerospace components.
Steel and Automobile Tariffs
- Lowered Barriers: Although the deal does not specify comprehensive tariff reductions for steel and cars, it targets general trade barrier reduction.
- Sector Mention: President Trump emphasized that the deal incorporates critical sectors like steel and automobiles; however, specific tariff reductions for these sectors remain unspecified in public announcements.
- Future Tariffs: The UK will receive preferential consideration in any additional tariffs enacted under Section 232 investigations, affecting sectors such as steel.
In essence, while the deal offers substantial advantages in terms of market access and barrier elimination, specific tariff details for steel and cars remain undisclosed. Further negotiations are necessary to finalize the proposals and legally formalize the agreement.
- The UK and India are discussing a Free Trade Agreement, which, once finalized and ratified, could offer significant benefits to both countries' businesses and exporters.
- Reynolds, the UK's trade minister, will meet with Piyush Goyal, India's Minister of Commerce, to discuss the progress of this Free Trade Agreement.
- While the UK-US trade deal has potential advantages for sectors like ethanol, beef, and aviation components, specific tariff details for steel and cars remain undisclosed, requiring further negotiations.
- Reynolds' meeting with the US Trade Representative will also cover the implementation timelines of the bilateral agreement, as the UK grapples with the recent increase in US tariffs on imported steel, which could impact British manufacturers severely.
