Rolling Back Restrictions: Trump and Starmer Announce Major Trade Ease
Trump and Starmer commemorate first substantial trade duty agreement
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In a remarkable development, the Old World is eagerly embracing new deals with the USA. Following Trump's bold tariff policies, the first significant agreement is in motion. The nations will soon be lowering barriers on goods. Britain is gearing up to import aircraft from Boeing, and the USA will be welcoming aircraft parts from Rolls-Royce.
At a lively White House press conference, Trump celebrated the trade pact with Britain as a triumph of his tariff strategies. Declaring it as "a big deal," he hinted at more such arrangements to come. Keir Starmer, the British Prime Minister, might feel validated in his approach to avoid conflict with the USA. "It's a truly awesome, historic day," he exclaimed over the phone during the press conference.
Trump claimed the deal as "comprehensive," but British government sources stated that it was not a typical free trade agreement. Instead, the deal focuses on precise areas and serves as a blueprint for further negotiations.
Cars vs Aviation Components
Cars and aircraft parts are now set to enter the market with reduced tariffs. According to US Trade Minister Howard Lutnick, a quota of 100,000 vehicles will attract a 10% reduced tariff. In return, Britain will import Boeing aircraft at an approximate worth of $10 billion (~£8.9 billion). The British will also decrease tariffs on US goods from 5.1 to 1.8% and eliminate tariffs on British steel and aluminum. Rolls-Royce aircraft parts will enter the US duty-free.
Last year, the trade volume between the USA and Britain was around $370 billion, but approximately 70% of British exports to the USA were services, which are tariff-free, and only around 30% were goods.
A Milestone for Starmer
This deal marks a significant achievement for Starmer, following the announcement of a comprehensive agreement with India earlier this week. This is the most significant trade deal the UK has struck since its departure from the EU. The government in London is now attempting to forge agreements with economic heavyweights like the USA, China, and the EU without alienating any of them.
Starmer's Labour Party under Pressure
However, political pressure mounts on Starmer. Since the last summer's election, his government has plummeted in popularity faster than any other in the UK. His Labour Party suffered losses in the recent local elections as well. Similarly, Trump's economic policies have led to widespread dissatisfaction in the US.
The EU has threatened tariffs of 25% on US exports worth nearly $100 billion if no agreement is reached with the US. The deadline is currently set for July. So far, the Trump administration has not responded to Brussels' offer for the mutual abolition of tariffs on industrial goods.
The EU's Stance
The EU Commission is preparing additional tariffs on US exports worth up to $115 billion. These tariffs might be imposed on industrial and agricultural products such as cars, sweet potatoes, and whiskey if negotiations with Washington do not produce a solution.
Meanwhile, the EU Commission plans to file a lawsuit against the US at the WTO and consider export restrictions on certain products worth $5.8 billion.
America's Next Moves
This week, the USA and China announced high-level tariff talks. While this agreement with Britain is a symbolic victory for Starmer, an economic agreement with the European Union, which is set to make significant progress at a summit in London on May 19 with EU Commission President Ursula von der Leyen and EU Council President António Costa, is considered more important.
Avoiding Lowered Standards
There has been some discussion about a dynamic agreement in the area of animal health and food standards, which could potentially face obstacles due to concessions to the US. However, the UK government has assured the public that British food standards will not be compromised by this agreement with the US. Given that the EU as a whole remains the more significant trading partner for the UK (almost half of British goods exports go there, while 16% go to the USA), the outcome of future negotiations between the EU and the UK will be crucial.
- The community policy of the White House Press Conference included discussions about tariffs, with Trump announcing a significant trade agreement with Britain.
- The employment policy in this agreement involves the import of aircraft from Boeing and aircraft parts from Rolls-Royce between the USA and Britain.
- In education and self-development circles, this trade deal might spark debates over the impact of political decisions on technology and general news.
- In the world of casino and gambling, some might see this agreement as a winning hand for Starmer, but the entertainment industry could be affected by potential tariffs on certain products.
- In political discussions, critics may question whether the current tariff policies announced by Trump are typical or will lead to lowered standards, particularly in the agriculture sector.
- The future of sporting events, which depend on the trade of goods, could also be influenced by the outcome of Starmer's deliberations with economic giants such as the EU and China.
