The US-UK agreement is the first deal since Trump imposed sweeping tariffs in April
Read more:
https://www.usatoday.com/story/news/politics/2025/05/08/us-uk-trade-deal-trump-announces-agreement/83508333007/
https://www.bbc.com/news/articles/c15ng4g5g0eo
Key aspects of the U.S.-UK trade deal:
Reduced Tariffs:
The deal will cut tariffs on British automobiles from 27.5% to 10%. Tariffs on UK steel and aluminum will be reduced to zero.
Increased Market Access:
The UK will increase market access for American exports, including agricultural products like beef, ethanol, and other farm products.
Pharmaceuticals:
The deal will create a secure pharmaceutical supply chain, with pharmaceuticals potentially being exempt from tariffs between the two countries.
Boeing Aircraft:
The UK is expected to purchase $10 billion worth of U.S.-assembled Boeing aircraft.
Continued Baseline Tariffs:
The 10% baseline tariff imposed by the U.S. on several countries will remain in place.
Focus on specific sectors:
The deal appears to focus on specific sectors like automobiles, steel, aluminum, and pharmaceuticals, rather than a comprehensive trade agreement.
Digital Services Tax:
The UK has not been forced to drop its 2% digital services tax on U.S. tech firms.
Other potential trade deals:
President Trump has also indicated his interest in negotiating a trade deal with the European Union.
The U.S. is also in talks with other leading economies, including India and Japan, but agreements have yet to materialize.
The U.S. has been actively seeking to address trade deficits and has been imposing tariffs on various countries, including China.
Overall, the U.S.-UK trade deal is seen as a step towards restoring some trade relationships and addressing specific concerns, while also keeping the baseline tariff in place for other countries..
