The President of the United States, Donald Trump, has presented on Thursday a “revolutionary” trade agreement with the United Kingdom, which British Prime Minister Keir Starmer has described as “really important” to boost trade between the two countries, although the final details will be drafted in the coming weeks.
During a press conference from the Oval Office of the White House, in which Starmer participated via video conference and coinciding with the celebration of the 80th anniversary of the Allied victory in World War II, Trump has stated that the agreement will allow for the reduction or elimination of numerous non-tariff barriers for American products, adding that it will also be “very beneficial” for the United Kingdom.
What are the details of the agreement between the US and Great Britain?
“With this agreement, the United Kingdom joins the United States in affirming the principle of proximity and fairness,” Trump stated.
While the US president indicated that the final details “are being drafted in the coming weeks,” he also stated that the agreement “is very conclusive” and almost everything has been approved. This means that the United States will receive new access to the British market for American chemical machinery and many other industrial products that were not previously allowed, as well as for American products that were not available in the UK.
The White House has indicated that the trade agreement allows for significantly expanding U.S. access to the UK market, creating a $5 billion (€4.407 billion) opportunity for new exports for American farmers, ranchers, and producers, including over $700 million (€617 million) in ethanol exports and $250 million (€220 million) in other agricultural products, such as beef.
Likewise, the agreement commits both countries to collaborate in improving access to the industrial and agricultural market and eliminates legal gaps, increasing the competitiveness of American companies in the British market, as well as ensuring simplified customs procedures for exports from the United States.
The 10% tariff remains in place
Despite the agreement reached, the reciprocal tariff of 10% will remain in effect, originally announced on April 2nd, a rate that Trump has warned could set a floor for future agreements with other countries.
In this sense, during his press conference, the President of the United States considered it to be a “low figure”, stating that the British “made a good deal” and that tariffs for others “will be much higher because they have huge trade surpluses”.
“The 10% model is probably the lowest and that’s why they made that deal, but we have a very special relationship with them,” Trump commented.
Trump praises the role of Labour’s Starmer
The American president highlighted the role of the British Prime Minister, who is center-left, emphasizing that the United Kingdom is one of the closest and most beloved allies of the United States, adding that the agreement “is the first of a series of trade deals” that his administration has been negotiating over the past four weeks.
Starmer expressed his satisfaction at having achieved “a truly important agreement” that will boost trade between both countries and represents “an incredible platform for the future.”
In a statement, Downing Street 10 indicated that US tariffs on car exports are immediately reduced from 27.5% to 10% for a quota of 100,000 cars from the UK, almost the total the country exported last year, while tariffs on steel and aluminum were reduced to zero.
Likewise, the agreement includes a new reciprocal access to the beef market, with a tariff-free quota of 13,000 metric tons for UK farmers, while not implying a relaxation of British food standards for imports.