The government of the United Kingdom has reported that the European Union will reduce tariffs on imports of British automobiles to 10 percent from 27.5 percent, but only for up to 100,000 automobiles. Additionally, steel exports from the United Kingdom will enter the United States tariff-free, instead of the 25 percent tax that was applied.
In this agreement, both countries agree to greater market access for beef, with the possibility of exporting 13,000 tons of beef to each other. The UK will also eliminate the tariff on ethanol from the United States for up to 1.4 billion liters, while the United States will remove all tariffs on aircraft engines and other aerospace parts from Rolls Royce in the UK.
British Prime Minister Keir Starmer stated that the agreement will protect jobs in the automotive sector and emphasized the importance of the relationship between the two countries. The deal is considered historic by the United States government, which claimed it to be a significant agreement for the country.
On the other hand, the trade agreement between the United States and the United Kingdom maintains a 10 percent tariff on nearly all imports from the UK, imposed by Trump on April 2. This deal is expected to benefit the British automotive and steel industries, allowing them better access to the US market. A digital trade agreement is also anticipated to be negotiated in the future.
Among what is not included in this agreement is the access of US companies to the British National Health Service, as well as taxes on digital services affecting US tech giants. Despite the expectations generated by the announcement, many economists believe that the real impact of this agreement on the US economy will be more symbolic than economic.
