Donald Trump outlines new trade deal with UK after tariffs upheaval
US President Donald Trump has announced a trade deal with the UK, his first since imposing sweeping tariffs. See what has been decided.
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Donald Trump has announced a “historic” trade agreement with Britain that casts doubt on Australia’s prospects of avoiding permanent 10 per cent tariffs on goods exported to the US.
While many of the details are yet to be finalised, the agreement will see the UK continue to pay a 10 per cent tariff on most goods, although the country, which has agreed to buy $10 billion of Boeing aeroplanes from the US, will be exempt from paying levies on Rolls Royce engines and plane parts.
It’s the first deal struck by the President after he implemented, and then paused, sweeping reciprocal tariffs on April 2 that he dubbed “Liberation Day” for the United States.
During the announcement in the Oval Office, the President described the UK as “one of our great allies”.
“Lot of people say our greatest ally,” he said.
“I don’t want to insult people by saying that, but I can say it’s certainly one of our greatest, right at the top.”
The new deal will also see the US lower its 25 per cent tariff on up to 100,000 British cars a year to 10 per cent, the baseline trade levy that will stay in place for most goods.
“The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers,” Mr Trump said.
“The UK will reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products.”
“This is now turning out to be, really, a great deal for both countries.”
Mr Trump has been a vocal critic of Australia’s biosecurity restrictions that act as a hurdle for US beef to be sent to our shores.
On Wall Street, stocks began to rise as the announcement was made.
UK Prime Minister Sir Keir Starmer was put on speaker phone during the announcement.
“This is going to boost trade between and across our countries,” Sir Keir said.
“It’s going to not only protect jobs, but create jobs, opening market access.”
Mr Trump said the administration was “very close” to striking deals with a number of other countries but did not identify which nations
Australia is currently subject to the 10 per cent baseline tariff on all goods exported to the US, and higher levies of 25 per cent on steel and aluminium.
The continuation of 10 per cent tariffs on the UK casts doubt on Australia’s ability to avoid the same levy.
In addition to beef, the US has taken aim at other perceived trade barriers from Australia including restriction on apple and pear imports and the country’s news media bargaining code.
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Originally published as Donald Trump outlines new trade deal with UK after tariffs upheaval