The United States has announced “groundbreaking deals” with the UK that creates a trading zone for aluminum and steel and secures the pharmaceutical supply chain.
The deal asserted that “reciprocity and fairness are key principles of international trade,” increasing access to US agricultural products, US President Donald Trump said Thursday, adding that the final details are still available.
“The final details are listed,” Trump told reporters. “In the coming weeks, we’ll make it all very definitive.”
The first contract the US has hit since Trump imposed his widespread tariffs is said to bring back documents for British companies considering exporting to the US.
The president said the agreement would lead to more beef and ethanol exports to the UK, and would streamline US processing through customs.
The White House said the transaction would bring $600 million in external revenue from 10% tariffs, but this will continue, but bring $5 billion to new export opportunities. The UK has agreed to lower tariffs from 5.1% to 1.8% and increase access to US goods.
The US already runs a trade surplus with the UK and it has made it a little easier to find a common base as Trump wagered his tariffs by specifically eliminating the annual trade deficit with multiple countries that he says he has used the US.
British Prime Minister Kiel Starmer joined the president in the announcement over the phone. Priority said the transaction would boost trade and create jobs.
The agreement announced Thursday is the first since the Trump administration launched a global trade war with a universal collection of 10%. The US also imposes 25% tariffs on automobiles, iron and aluminum, 25% tariffs on Canada and Mexico, and 145% tariffs on China. US and Chinese officials are scheduled to hold talks in Switzerland on Saturday.
The meaning of the UK
He has taken away his warm relations with Trump since the Labour Party, both of his centers, was elected in July.
Priority governments are trying to build new post-Brexit trade ties with the US, China and the EU so far without angering others.
The economists and the CEO of FTSE 100 companies (the best capitalized blue chip companies on the London Stock Exchange) thought the immediate economic impact of tariff contracts would likely be limited, but trade agreements generally help with long-term growth. The UK attacked a free trade deal with India this week.
The US and the UK have been aiming to attack bilateral trade agreements since Brits voted to leave the EU in 2016, allowing the country to negotiate independently of the rest of the continent. Minister Boris Johnson then promoted a future contract with the United States as an incentive for Brexit.
The US operated a $11.9 billion trade surplus last year on goods with the UK, according to the Census Bureau. The $68 billion goods imported by the US from the UK accounted for just 2% of all goods imported into the country.
The market responds
The US is under pressure from investors to attack transactions that rule out that tariff war after Trump’s often confused policymaking threatens to overthrow global trade with friends and enemies, stimulate inflation and start a recession.
Since the president on April 2nd imposed 10% tariffs on most countries and then charges for many trade partners that were suspended for 90 days, top US officials have been engaged in mass meetings with trading partner partners.
On Wall Street, US markets were responding to the news as they hoped this could be enough to drive the recession away.
As of 11:30am in the US (15:30 GMT), the S&P 500 has grown by 0.97%, earning its 11th profit in the last 13 days. Dow Jones’ industrial average was 1.02% higher, while the high-tech Nasdaq Composite was 1.17% higher than the market open.
The stocks have been rocking for weeks, hoping that Trump could reach deals with other countries that lower his tariffs.
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