The United States and Great Britain announced on Thursday that they Had reached a deal That would lower the rates for some input, such as steel, cars and ethanol, and deepen the economic relationship between the two countries.
There was a lot of mutual congratulation between President Trump in the Oval Office and Keir Starmer, the British Prime Minister, who called a speaker. “This is really a fantastic, historic day,” said Mr. Starmer.
As the dust decided, however, it became clearer that this was only a framework for a deal and there could be weeks, if not, of extra negotiations before it became final. This is what we know.
It is the first trade agreement since Trump has increased rates.
The rewriting of Mr Trump of the Global Trade Playbook shocked financial markets, and his administration is under pressure to reach deals to reduce uncertainty. Mr. Trump said that this deal would be the first of many.
The Trump administration said that the export options would open worth $ 5 billion for American companies, while it also yielded $ 6 billion in tariff income.
But Mr. Trump said that the final details were still written down and that British officials said that negotiators would continue to try to lower the rates that are not included in this deal.
It is a scary -oriented deal.
The agreement will be a huge relief for the British car industry, which will now receive 10 percent rates for the first 100,000 cars that are exported to the United States annually. Groot -Britain sent 92,000 vehicles to the United States in 2024, according to data from Oxford Economics.
British officials warned that the higher rates, which were around 25 percent, had an endangered jobs in the car industry of the countrywho sent more than a quarter of his car export to the United States.
Great Britain will also be excluded from rates about steel and aluminum. In exchange, it increased the quota over the import of beef from the United States and said it would remove a rate on ethanol that is used in production.
Great -Britain said that it would get a “preferential treatment” if further sectoral rates were introduced, such as on pharmaceutical products.
The two countries also have a “high level” agreement on economic safety and would work on building a deeper partnership in the field of technology that would cover the life sciences, quantum computing, biotech and other sectors.
There are still open questions.
This deal is not final, and neither of them said when it could come into effect. The British government said it was still negotiated to lower the rate of 10 percent on most other goods.
Jonathan Reynolds, the British business and trade secretary, said it was a “historical breakthrough”, but that it only achieved the “general terms and conditions” that the process will explain for more tariff negotiations.
The British government can explain a victory.
The deal can be derailed before it comes into force. For now, however, the Britain places in a better position than a few weeks ago. The country’s car and steel industry was already struggling, so all the efforts to export their ability to export to the United States, an important market, are welcome.
The agreement has also not led Great -Britain to cross its red lines about lowering its car or food safety standards that would have hindered a deal with the European Union. Great -Britain has not reduced its own rates on cars, as some reports had suggested. Nor did the changes made to its tax on Digital Services, which, according to Trump administration, had unfairly damaged the American technical giants. That tax was introduced by 2020 as a service of 2 percent on the income of search engines, social media services and online market places, and most income comes from large American companies such as Amazon and Google.
The Trump government also scored a victory and earned praise from American ranchers to increase the export of beef, although they should still be free of hormones. The National Cattlemen’s Beef Association called it a ‘great victory’.
But it is not an economic exchanger.
Despite the agreement, the export of British goods in general is still confronted with higher rates than two months ago, with the basic line 10 percent rate still appropriate.
And the trade relationship of Great -Britain with the United States is heavily crooked in the direction of services that are not influenced by rates. Many economists have warned that even with a deal, The British economy is vulnerable to global economic uncertainty.
Reducing that uncertainty would require Trump administration that he will insure more deals with other countries and make trade policy more predictable.
Ana Swanson Reported report from Washington.
- Advertisement -
