Britain set to strike first deal to cut Trump tariffs
London/Washington | Reuters — The United States and Britain will announce a deal to lower tariffs on some goods on Thursday, the first such agreement since U.S. President Donald Trump sparked a global trade war with universal levies.
In posts on Truth Social, Trump said he would hold an Oval Office news conference at 10 a.m. EDT on Thursday about a “full and comprehensive” trade agreement with Britain, but gave no further details about the pact.
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The deal is likely to be narrow, with Britain securing a reduction in Trump’s new tariffs on cars and steel, the two sectors hardest hit.
In order to secure the carve-out, Britain could give some access to agricultural markets. The U.S. has also sought a cut to Britain’s digital sales tax, which affects America’s tech giants.
The governments could also set out an ambition to strike a broader trade deal, encompassing other sectors.
“Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement,” Trump said. “Many other deals, which are in serious stages of negotiation, to follow!”
The United States has been under pressure from investors to strike deals to de-escalate its tariff war after Trump’s often chaotic policymaking upended global trade with friends and foe alike, threatening to stoke inflation and start a recession.
Britain won’t lower food standards
Top U.S. officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 per cent tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days.
The U.S. has also imposed 25 per cent tariffs on autos, steel and aluminum, 25 per cent tariffs on Canada and Mexico (for goods not covered under the CUSMA trade agreement), and 145 per cent tariffs on China. U.S. and Chinese officials are due to hold talks in Switzerland on Saturday.
Jake Colvin, president of the National Foreign Trade Council in the U.S., welcomed the progress. “Businesses will be looking to see the extent to which an agreement removes President Trump’s tariffs, addresses longstanding U.K. irritants and provides guarantees against future tariff hikes.”
While seeking a deal with the U.S., Britain had refused to lower its food standards, which are closely aligned with the European Union. However, Britain’s farming trade union has said that some U.S. producers who do not use growth hormones or antimicrobial washes could be given greater market access.
The status of the 10 per cent “baseline” tariff was unclear, as was a threatened tariff on the pharmaceutical industry which could damage AstraZeneca and GSK.
News of an announcement sent shares in luxury carmaker Aston Martin up 10 per cent while British retailers with operations in the U.S. including JD Sports and Primark owner AB Foods also rose.
Source: Farmtario.com