Trump Cuts UK Tariffs in Trade Deal, Boosting US Beef Exports

During his Thursday address President Donald Trump revealed a trade agreement between the United States and the United Kingdom which includes reduced tariffs for UK autos and steel and aluminum products alongside increased US beef and ethanol exports and simplified customs procedures for US goods. The unconfirmed agreement reduces UK auto tariffs to 10% for 100,000 vehicles while eliminating 25% steel and aluminum tariffs but keeping a 10% standard tariff. UK Prime Minister Keir Starmer welcomed the agreement because it safeguards automotive employment and commemorates the 80th anniversary of Allied victory in World War II. The political victory for Starmer demonstrates how Trump’s tariff-based trade policies continue to gain support despite worldwide economic instability concerns. The United States maintains a trade surplus with the UK because of its smaller market size compared to China where 145% tariffs continue to apply. The United States plans to start trade negotiations with China at a location in Switzerland. The UK began pursuing a US trade agreement in 2020 and intensified its diplomatic efforts during Trump’s second presidential term. Trump announced that his administration continues to work on additional trade agreements with various nations.