The British public is reflecting on the effects of
Keir Starmer
referred to the trade agreement with the U.S. today, noting that statistics indicate it encompasses roughly one-fourth of Britain’s total exports.
The agreement dramatically unveiled by the Prime Minister and the U.S. President last evening aims to reduce
tariffs
From 25 percent down to 10 percent for the initial 100,000 vehicles shipped to the United States.
Duties on steel shipments will be reduced from 25 percent to zero, in exchange for agreements like lowering taxes on American vehicles and granting British markets greater access to farmers. During a series of interviews today, Treasury Minister Darren Jones asserted that 150,000 employees would feel relief knowing their positions were now secure.
Nevertheless, the agreement maintains tariffs at levels higher than those prior to President Trump initiating his unprecedented trade conflict.
Analysis by
Sky News
It suggests that out of £273 billion worth of exports to the United States over the last five years, only about a quarter could potentially be impacted by this deal. The remaining exports would continue to face the standard 10 percent tariff rate.
This assumption also relies on the pharmaceutical industry, contributing £25.2 billion to the overall amount during this period, receiving an exception from Mr. Trump’s impending round of tariffs, though this seems quite uncertain at present.
The accord made no provisions for the UK film sector, following the president’s threat of imposing 100 percent taxes on movies produced abroad.
And it seems the US has not abandoned efforts to assist major technology companies by attempting to dilute the Digital Services Tax.
Mr. Jones informed the BBC regarding the lack of provisions for pharmaceuticals and movies: “The fact that there’s nothing is great news… those tariffs haven’t been implemented.”
In other developments today:
-
The parent firm of British Airways has declared its intention to acquire 32 new Boeing aircraft from the American manufacturer, a deal that was highlighted by the U.S. Commerce Secretary yesterday.
-
The Bank of England Governor, Andrew Bailey, asserts that the UK needs to “reconstruct” its trading relationships with the European Union. This statement comes as Conservative Party members express concerns about Sir Keir’s proposed reset of Brexit negotiations.
-
Ministers have refuted claims that Mr. Trump has been granted a ‘veto’ regarding Chinese investments in the UK.
This agreement marked the first deal made by the U.S. since President Trump introduced his infamous ‘Liberation Day’ tariffs that shocked global markets.
Government officials were concerned that major automobile manufacturers might be planning to eliminate thousands of positions unless the taxes were lowered.
According to sources, Jaguar Land Rover was on the verge of announcing ‘hundreds’ of job cuts as soon as the following week.
Faced with the assertion that the UK was in a more difficult position compared to before Mr. Trump introduced extensive tariffs, Mr. Jones countered on Times Radio: “We should consider the reality of our current situation rather than an idealized version of how things could be. Given our present circumstances, this agreement represents a significant win for Britain.”
We are the first nation globally to secure an accord with the U.S. President allowing us to transition away from the heightened tariffs imposed on international commerce.
‘That’s certainly worth celebrating for the UK economy and for the people who work in those industries.’
Mr. Jones stated to the BBC: “I would certainly prefer a world without tariffs, but that’s simply not the reality we live in. Therefore, it isn’t actually an available choice. What we face instead is deciding between having no trade agreement with the U.S., which means facing higher tariffs, or signing a trade deal with them to achieve lower tariffs.”
We have finalized that trade agreement, which has led to reduced tariffs in key manufacturing areas within the UK. As a result of this pact, approximately 150,000 individuals’ jobs have been safeguarded. By definition, these people are now better off due to the government’s actions aimed at supporting workers throughout the United Kingdom.
President Trump stated that the pace of the agreement with the UK could only be achieved due to Britain’s position outside the European Union.
He suggested that competing automobile makers in EU nations like Germany will probably not receive a comparable agreement.
Last night, Boris Johnson emphasized the significance of Brexit in finalizing the agreement and pointed out the irony that Sir Keir is now ‘benefiting from a policy he notably opposed at the time.’
Ministers did not achieve any advancement in lowering the 10 percent ‘base’ tariff applicable to all exports heading to the US.
Britain apparently consented to stop inexpensive Chinese steel and pharmaceutical products from being channeled through the UK to America as part of a ‘supply security’ initiative.
The White House stated that relative to the situation prior to Liberation Day, total US tariffs on British products had increased from 3.4 percent to 10 percent. Meanwhile, Sir Keir consented to reduce duties on American goods from 5.1 percent down to 1.8 percent.
Kemi Badenoch stated that Britain was ‘shortchanged’ by the agreement. She pointed out, “We reduced our tariffs, but America increased theirs threefold.”
Other Conservatives criticized the deal for not being comprehensive enough.
Andrew Griffiths, the shadow business secretary, stated on BBC Radio 4’s Today program: “The agreement from yesterday contains several positive aspects—I believe both the automotive and steel sectors will appreciate particularly the decrease in tariffs. However, taken as a whole, it remains rather discouraging.”
It remains quite ambiguous regarding the fate of the pharmaceutical sector, which is a significant industry in the UK. There has been no mention of implications for the film and television industries either. However, at the beginning of the week, the government discussed potentially imposing 100 percent tariffs on this sector.
It doesn’t represent a traditional trade agreement.
Mr. Griffith stated that the deal fails to provide any mutual recognition between the United States and the United Kingdom. He encouraged the government to return to negotiations with their counterparts to work out a thorough agreement.
However, the PM stated: “What we ought to be questioning is whether this is a more favorable situation than we faced yesterday.”
He asserted that this achievement proved his conciliatory strategy toward Mr Trump was correct, further stating: “My administration has positioned Britain at the head of the line as we aim to collaborate positively with our partners.”
Official sources admitted that the deal does not meet the desired outcome of eliminating all U.S. tariffs, yet they mentioned that ministers opted to proceed with this interim agreement to avoid job cuts in the automotive sector.
The business secretary, Jonathan Reynolds, stated that the importance of the U.S. market for premium exporters like Jaguar Land Rover, Aston Martin, and Bentley implied that the UK would confront imminent announcements regarding job cuts if the 25 percent tariff persisted.
Read more
Leave a Reply