President Donald Trump listens as Prime Minister Keir Starmer van Groot -Britain to him on the speaker telephone in the Oval Office in the White House on 8 May 2025 in Washington, DC.
Anna Moneymaker | Getty images
The UK and the US added to Landmark Trade Deal on Thursday – but the agreement seems to be far from free of rates.
The deal was made first by the United States since President Donald Trump revealed his so -called mutual rates around the world last month.
The position of the United Kingdom as one of a handful of countries where the US destroys a trade surplus in goods – which means that the US exports more to the VK than it imports – the country placed in front of the queue for civil servants to come up with an agreement with the Trump administration.
Even Great -Britain, with its “special relationship” with the US, did not succeed in convincing Trump to drop all rates during trade discussions.
According to the deal, the UK can export 100,000 vehicles each year at a 10% rate, with addional vehicles with 25% tasks. British steel makers and the aluminum industry will be Uble to export tariff -free, decrease compared to the 25% rate the US Despet in February.
All Oher-goods imported from the UK will still be subject to 10% Baseline rate-by-Trump says that it is the lowest country-specific that is Bablage for trading partners.
Trump also suggests that the deal is probably rare because of the balanced training relationship of the two countries and close political ties with the unlikely way that each country will be tariff -free under its second administration.
Asked if the basic line rate of 10% is a template for future trade agreements, Trump said: “That is a low number.”
“They made a lot,” I added. “I’ll be a lot
Analysts took that as intended that Tarifs of 10% on the minimum is the best deal that other countries and trade blocks could reach.
“The details of the US-UK deal suggest that the US 10% Baseline rate will probably remain in force for other trading partners on virtually no exceptions, but signals more flexibility than experience in sector reasons,” said Jan Hatzius, chief economist and head of Global Invest Research at Goldman Sachs.
JPMorgan’s American economist Abiel Reinhart also noted that “the opportunities that a percentage of at least 10% could be maintained in most countries in most countries this year” in a memorandum for customers.
Reinhart, however, suffered that the carve-outs are protected by the United Kingdom for his car, steel and aluminum sectors, indicated that the US may be willing to cut to size, but still narrower in scope-deals with other nations.
“This has been the most important bottleneck in recent trading discussions with Japan, given the importance of the automotive sector,” Reinhart added “, but it is also possible that the US was more willing to make concessions with the UK on cars, since the UK explains only about 2.5% of the American import of vehicles and components.
Rella Suskin, stock analyst and car expert in Morningstar, Popedo that the deal to effectively reduce only 100,000 cars Tata Motors-The Jaguar Land Rover.
Inspired, it would benefit from car manufacturers such as BMW Those car parts Tarif-free import and assemble vehicles in the US, according to Suskin.
“The limitation of the essence of the VK is UBL to export 100,000 cars to the US annually at a 10% rate means that Jaguar cannot take a market share of a” preferential “rate compared to European automakers,” Suskin said.
Andrew Hood, head of international trade at the European law firm Fieldfisher and former adviser of British Prime Minister David Cameron, said the deal was more to “support the wider UK-UK relationship” than to help the trade between the two countries.
“It is remarkable that the deal is much more limited than most free trade agreements. It does not reverse the 10%, recently applied by the Trump administration,” Hood said. “On the contrary, the deal focuses on supporting certain sectors, remarkably the car industry, ethanol producers and the steel and aluminum manufacturers where rates are considerably reduced or eliminated.”
Because the remaining rates of 10% are harmful to the United Kingdom, others also point to the deal of US economic growth.
“While exemptions will nibble with the effective rate percentage, with the basic line 10% nowhere, the average American half of the year,” said Michael Pearce, deputy head -American economist at Oxford Economics.
