{"id":85644,"date":"2025-05-08T21:35:11","date_gmt":"2025-05-08T21:35:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/85644\/"},"modified":"2025-05-08T21:35:11","modified_gmt":"2025-05-08T21:35:11","slug":"trump-agrees-to-cut-some-tariffs-on-uk-in-a-trade-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/85644\/","title":{"rendered":"Trump agrees to cut some tariffs on UK in a trade deal"},"content":{"rendered":"

WASHINGTON (AP) \u2014 President Donald Trump agreed on Thursday to cut tariffs on U.K. autos, steel and aluminum in a planned trade deal but played down the possibility of other nations getting similarly favorable terms on his import taxes<\/a>, which are roiling the global economy.<\/p>\n

Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States. But Trump\u2019s baseline 10% tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the U.S.<\/p>\n

<\/p>\n

\"Cars<\/p>\n

Cars are parked at Port of Tilbury, England, Wednesday, Feb. 5, 2025. (AP Photo, File)<\/p>\n

Cars are parked at Port of Tilbury, England, Wednesday, Feb. 5, 2025. (AP Photo, File)<\/p>\n

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\u201cThat\u2019s a low number,\u201d Trump said of the U.K.’s 10% tariff rate, adding that other countries would face higher tariff rates in their deals because the U.S. runs trade deficits with them and \u201cin many cases they didn\u2019t treat us right.\u201d<\/p>\n

The announcement provided a political victory for U.K. Prime Minister Keir Starmer<\/a> and offered a degree of validation for Trump\u2019s claims that his turbulent approach on trade may be able to rebalance the global economy on his preferred terms. While the deal should improve Britain\u2019s situation relative to when Trump began imposing new tariffs, the world economy is still mired in the confusion and uncertainty unleashed by the president\u2019s import taxes. The deal with the U.K. would be a meaningful but small step toward greater clarity.<\/p>\n

The U.S. president talked up the framework to reporters in the Oval Office, although the fine print remains in flux.<\/p>\n

\u201cIn the coming weeks, we\u2019ll have it all very conclusive,\u201d Trump said.<\/p>\n

The president said that the agreement would lead to more beef and ethanol exports to the U.K., and streamline the processing of U.S. goods through customs. Commerce Secretary Howard Lutnick<\/a> said that the baseline 10% tariffs would stay in place and that an unspecified British company would be announcing the purchase of $10 billion in aircraft from Boeing<\/a>. <\/p>\n

<\/p>\n

\n AP AUDIO: Trump agrees to cut tariffs on UK autos, steel and aluminum in a planned trade deal with Britain\n <\/p>\n

AP Washington correspondent Sagar Meghani reports on the outlines of a trade deal with the United Kingdom.<\/p>\n

U.K. officials said that Trump\u2019s auto tariffs would go from 27.5% to 10% on a quota of 100,000 vehicles and the import taxes on steel and aluminum would go from 25% to zero. Starmer said Britain would preserve its health and safety standards on food products.<\/p>\n

The U.K. government also said it would also reduce tariffs on 2,500 U.S. products such as olive oil, wine and sports equipment, bringing down the average tariff rate 1.8%. <\/p>\n

Starmer, speaking over the phone to Trump while reporters listened in, stressed the importance of the relationship between the two countries as the anniversary of the World War II victory in Europe<\/a> was being commemorated.<\/p>\n

\u201cTo be able to announce this great deal, on the same day 80 years forward, almost at the same hour,\u201d Startmer said, \u201cI think is incredibly important and makes this truly historic.\u201d<\/p>\n

Starmer later spoke to workers at a Jaguar Land Rover plant and promoted the deal, which he said would protect thousands of auto jobs. He told the workers that \u201cthis is just the start,\u201d saying \u201cwe are hammering out further details to reduce barriers to trade with the United States and across the world.\u201d<\/p>\n

While celebrating the planned deal, Trump talked up the U.S. economy\u2019s future despite worrisome signs of a possible slowdown and increase in inflation<\/a> that could hurt most Americans\u2019 financial well-being and lead to layoffs.<\/p>\n

The president said the public should buy into the stock market because the U.S. was about to go up like a \u201crocket ship,\u201d even as he dismissed reports of fewer container ships docking in the U.S. and companies warning of price increases<\/a> if the tariffs remain.<\/p>\n

<\/p>\n

\"Britain's<\/p>\n

Britain\u2019s Prime Minister Keir Starmer, left, and U.S. President Donald Trump shake hands at a joint press conference in the East Room at the White House Thursday, Feb. 27, 2025, in Washington. (Carl Court\/Pool Photo via AP, File)<\/p>\n

Britain\u2019s Prime Minister Keir Starmer, left, and U.S. President Donald Trump shake hands at a joint press conference in the East Room at the White House Thursday, Feb. 27, 2025, in Washington. (Carl Court\/Pool Photo via AP, File)<\/p>\n

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Trump said that fewer container ships arriving from China meant \u201cwe lose less money\u201d from the trade deficit, even though the goods in those ships are used by U.S. manufacturers and sold by retailers in ways that can support jobs while holding down prices.<\/p>\n

Asked about companies saying they would need to raise prices because of the tariffs, Trump said, \u201cI think they\u2019re saying that just to try and negotiate deals with me.\u201d Trump suggested that he might put 100% tariffs on Mattel toys if they don\u2019t relocate their factories to the United States. <\/p>\n

Trump has maintained that there is \u201cvirtually\u201d no inflation. The Federal Reserve\u2019s preferred inflation measure has increased at 2.3% annually, slightly higher than the central bank\u2019s 2% target.<\/p>\n

The U.S. president on Thursday said that Fed Chair Jerome Powell<\/a> should cut the Fed\u2019s benchmark interest rates that are designed to manage inflation, saying that Powell was holding the Fed\u2019s rates at current levels instead of slashing them because \u201che\u2019s not in love with me.\u201d Powell warned at a Wednesday news conference that the tariffs were creating uncertainty and the Fed could afford to wait until more data shows the impacts on the economy.<\/p>\n

<\/p>\n

\"View<\/p>\n

View of the Bank of England and the Royal Exchange from the Lookout viewing point, in London, Wednesday, April 9, 2025. (AP Photo\/Alberto Pezzali, File)<\/p>\n

View of the Bank of England and the Royal Exchange from the Lookout viewing point, in London, Wednesday, April 9, 2025. (AP Photo\/Alberto Pezzali, File)<\/p>\n

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The U.S. already runs a trade surplus with the U.K., making it a bit easier to find common ground at a time when Trump has staked his tariffs on eliminating the annual trade deficits with multiple nations he says have taken advantage of the U.S.<\/p>\n

A British government official, insisting on anonymity to discuss the talks, said the U.K. planned to seek greater trade liberalization as negotiations continue, such that the effective tariff rate charged by the U.S. could be lower than the 10% baseline.<\/p>\n

The official said the talks have been built on the longstanding closeness between the two nations and that, when in discussions with the Trump administration, the key was to be charming and know how to say \u201cno\u201d nicely.<\/p>\n

No new deals have been reached with the United States\u2019 largest trading partners, including Canada, Mexico and China. Trump has left the highest tariffs in place on China, sparking a confrontation between the world\u2019s two biggest economies<\/a>. Washington and Beijing are sending officials to Switzerland this weekend for an initial round of trade talks<\/a>.<\/p>\n

Trump said Thursday that he \u201ccould\u201d lower the 145% rate charged on Chinese goods if the weekend talks go well.<\/p>\n

\u201cRight now, you can\u2019t get any higher,\u201d Trump said. \u201cIt\u2019s at 145, so we know it\u2019s coming down.\u201d<\/p>\n

The U.S. and the U.K. have been aiming to strike a bilateral trade agreement since the British people voted in 2016 to leave the European Union, allowing the country to negotiate independently of the rest of the continent. Then-Prime Minister Boris Johnson<\/a> touted a future deal with the U.S. as an incentive for Brexit. <\/p>\n

Negotiations started in 2020, during Trump\u2019s first term. But the talks made little progress<\/a> under President Joe Biden<\/a>, a Democrat and a critic of Brexit. Negotiations resumed after Trump returned to office in January and intensified in recent weeks.<\/p>\n

The U.S. ran a $11.9 billion trade surplus in goods with the U.K. last year, according to the Census Bureau. The $68 billion in goods that the U.S. imported from the U.K. last year accounted for just 2% of all goods imported into the country.<\/p>\n

The U.S. is far more important for the U.K. economy. It was Britain\u2019s biggest trading partner last year, according to government statistics, though the bulk of Britain\u2019s exports to the U.S. are services rather than goods. <\/p>\n

___<\/p>\n

<\/p>\n

\"Steel<\/p>\n

Steel rods produced at the Gerdau Ameristeel mill in St. Paul, Minn., await shipment, May 9, 2019. (AP Photo\/Jim Mone, File)<\/p>\n

Steel rods produced at the Gerdau Ameristeel mill in St. Paul, Minn., await shipment, May 9, 2019. (AP Photo\/Jim Mone, File)<\/p>\n

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Jill Lawless reported from London. Associated Press writer Zeke Miller contributed to this report. <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 President Donald Trump agreed on Thursday to cut tariffs on U.K. autos, steel and aluminum…\n","protected":false},"author":2,"featured_media":85645,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[5109,51,32,1700,20091,4179,14009,4178,3058,714,807,38947,41233,285,5214,1523,41234,15,11654,49,5213,978,659,10673,263],"class_list":{"0":"post-85644","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-boris-johnson","9":"tag-business","10":"tag-donald-trump","11":"tag-economy","12":"tag-federal-reserve-system","13":"tag-general-news","14":"tag-howard-lutnick","15":"tag-inc","16":"tag-international-trade","17":"tag-joe-biden","18":"tag-keir-starmer","19":"tag-mattel","20":"tag-metals-and-mining","21":"tag-politics","22":"tag-tariffs-and-global-trade","23":"tag-taxes","24":"tag-the-boeing-co","25":"tag-united-kingdom","26":"tag-united-kingdom-government","27":"tag-united-states","28":"tag-united-states-government","29":"tag-us","30":"tag-usa","31":"tag-washington-news","32":"tag-world-news"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114474367336091179","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/85644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=85644"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/85644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/85645"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=85644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=85644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=85644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}