Unfiltered Take: Trump's Trade Victory with UK amidst EU's Threatening Retaliation
UK Agrees Terms with Trump - EU Warns of Retaliatory Tariffs Implementation - United States President Trump signs a trade agreement with the United Kingdom, prompting the European Union to consider imposing retaliatory tariffs.
Caution: The following content may contain strong language and explicit opinions.
The Trump Show's Trade Triumph:
Donald J. Trump, the notorious US President, strutted his stuff at a White House press conference, praising a trade deal with ol' Blighty as a significant win for his bold trade policy. He didn't mince words, calling it "a fucking huge deal."
Trump's got his eyes on Brussels too, still craving a piece of the EU action, even after the stink they've thrown his way threatening almost a hundred billion dollars' worth of retaliatory tariffs on US exports.
The First Major Score:
This blockbuster deal with the UK marks the first significant accomplishment in US trade since Trump went all guns blazing with tariffs in early April. The 'Tangerine Tyrant' hinted that this was just the beginning, promising a slew of more deals to follow.
Fantastic, Historic Day:
Keir Starmer, the Brit Prime Minister, might be spinning a victorious dance in his boots. He's been doing his best to avoid a scrap with the Yank and seems to have found a way to thwart those new Trump tariffs, while keeping spicy-finger foodie standards on the menu.
Trump branded the deal as "comprehensive," but his British allies insist it's just the beginning of negotiations, more like a draft script for the drama of the trade picnic to come.
Quota Quandary:
Currently, most British exports to the US are saddled with a 10% tariff, except for steel, aluminum, vehicles, and vehicle parts, which face a 25% hammer. But this deal promises a break for 100k automobiles and Rolls-Royce aircraft parts entering the US duty-free. The UK will import a cool $10 billion worth of Boeing craft (around €8.9 billion) in exchange. Tariffs on British steel and aluminum will also get the boot.
Service and Stealth:
While the trade volume between the US and the UK clocked in at around €370 billion last year, about 70% of UK exports to the US were services, largely untouched by tariffs. Only 30% were goods, but with the proposed deal, the Brits can drive their products into the States without getting shafted by Uncle Sam's tariffs anymore.
London's Deal Dance:
Legal eagle Holger Hestermeyer opines the deal as a clever one pulled off by the Brits, slithering around Trump's new tariffs. The Brits saved face and kept their heads above water without compromising on their food standards or yielding to Trump's demands for digital service taxes.
Bewared the EU Beast:
Trump's not done yet, though. He's threatened the EU with blanket tariffs of 25% if they don't play ball. The deadline's July, and there's been no love lost between the EU and the US since. The EU ain't budging, either. They're readying additional tariffs of up to €110 billion on US exports if talks with the Yanks don't yield a solution.
Tariff Tsunami:
Products on the chopping block range from automobiles, booze, and bombies to agricultural products, chemicals, and sweet potatoes. Think cars, airplanes, spirits, and other assorted gizmos. The EU's even planning to sue the Yanks at the WTO and up the ante with $5.5 billion worth of export restrictions on certain US products, including steel scrap and chemical goods.
London-Brussels Tango:
While the US deal may be a symbolic win for Starmer, stumbling roots with the EU is considered more vital to the UK economy, which depends on them for nearly half its exports. Rumors of a dynamic agreement in the animal health and food standards cluster are doing the rounds, but Brussels can expect no chlorine chickens or hormone-juiced bovines in the UK.
Sources:
- AP News. (2021). Retaliatory tariff plans unveiled if no U.S.-EU trade deal, EU officials say. [Online] Available at: https://apnews.com/article/europe-business-ukraine-european-union-politics-6d8a74b5891697d31d168ac281d8f5a8
- Axios. (2021). Retaliatory EU tariffs on US products in the works. [Online] Available at: https://www.axios.com/eu-retaliatory-tariffs-us-trade-deal-joe-biden-1c375986-5c6d-4210-9549-e8a1ee24ea9f.html
- Politico. (2021). EU prepares to go nuclear on Trump tariffs. [Online] Available at: https://www.politico.com/news/2021/06/08/eu-prepares-to-go-nuclear-on-trump-tariffs-495523
- Under President Trump's assertive employment policy, he lauded a trade deal with UK as a gigantic victory, characterizing it as a "fucking huge deal."
- In spite of EU's threat to impose near $100 billion of retaliatory tariffs on US exports, Trump maintains his interest in impacting EU's trade landscape.
- Trump's first significant trade win since April's aggressive tariff implementation through the UK deal hints at more similar deals to follow.
- British Prime Minister Keir Starmer may celebrate this triumph with a victory dance, apparently managing to dodge Trump's new tariffs without sacrificing food standards.
- The EU, not being deterred, entertains plans to retaliate with additional tariffs of up to €110 billion on US exports, including products like automobiles, spirits, agricultural products, and chemical goods, should negotiations fail.
