US UK trading agreement: How do Trump's global tariff discussions develop? | International trade news

The President of the United States, Donald Trump, announced on Thursday the framework of a trade agreement between the USA and the United Kingdom, which the US tariffs for most British goods reinstated with 10 percent.

“For so many years, everyone spoke about a deal,” Trump said in a warmth of his British counterpart. “It has now been done with us.” He added that there was an “external and internal bond” between the two countries. It was an honor to do business with Great Britain, he said.

Prime Minister Keir Starrer, who called into the White House from Great Britain to join the announcement, welcomed the deal and said it was a “historical day”.

On Wednesday, Trump said that he had prepared to announce “a large trade agreement with representatives of a large and highly respected country”. In a contribution about the social truth, he promised that it would be the “first of many”.

Investors have been waiting for Trump to make his global trade war easier because it was feared that long uncertainty over the tariffs could harm the world's greatest economies.

The agreement with Great Britain marks Trump's first trade agreement since the tariff for dozens of countries on April 2, a date on which he described the “liberation day”. Regardless of this, Trump introduced tailor -made tariffs for certain US imports, including cars and steel.

Trump has long accused other countries of exploiting the United States through the trade and filling its tariffs as required to bring jobs back to the USA. He also wants to use tariffs to finance future tax cuts.

What is in the US UK trade agreement?

So far, most imports from Great Britain to the United States have confronted 10 percent tariff with a ceiling. As in other countries, Great Britain was also hit 25 percent tariffs for steel and aluminum exports in the USA as well as a 25 percent tariff for cars and auto parts.

As part of the new agreement, US tariffs are set to British goods to 10 percent, while the tariffs are reduced to zero on British steel and aluminum. The interest rate of 10 percent is still much higher than the 2.5 percent tariffs for cars as part of the administration of the former US President Joe Biden. The deal will generate sales of USD 6 billion for the United States and create $ 5 billion for new export options, said the White House.

Great Britain has agreed to reduce the tariffs for US goods from 5.1 percent to 1.8 percent and to ensure higher access in the British markets for US goods. It has also agreed to acquire USD 10 billion from Boeing Ba.n Planes, said the US Minister of Trade Howard Lutnick on Thursday during the announcement of the commercial business in the White House.

According to Starrer, the deal has completed its promise to protect British automobile manufacturers and the steel sector. “All of these tariff cuts will be reconciled as soon as possible,” said Starrer after his call with Trump.

The deal will also create an aluminum and steel trade zone and secure the pharmaceutical supply chain, Trump wrote in a social media post when the deal was announced in the White House.

The United Kingdom was not forced to reduce its 2 percent digital service tax on US technology companies, as already expected.

In a state declaration by the British government, it says: “The tax of digital services remains unchanged as part of today's deal. Instead, the two nations have agreed to work on a digital trade agreement that is trying to export the paperwork for British companies – – – – – – – – – to open the UK to a huge market, the rocket boosers in the British economy brings in. “

While both governments are likely to present the agreement announced today as a significant victory, it is essentially about returning to the status quo and eliminating the newly imposed tariffs.

It remains to be seen how much Agreement the economic output of both countries will contribute.

What and how much trade in the USA and Great Britain?

In 2023, Great Britain had a total trade surplus with the United States. Great Britain reported a surplus of £ 71.4 billion ($ 95 billion) of goods and services. Most of this headroom, however, comes from service.

In 2023, 15.3 percent of its goods exported to the United States and corresponds to around £ 60 ($ 80 billion).

Machine and transport devices made up the largest share with £ 27 billion (USD $ 36 billion) before chemicals with £ 14 billion ($ 19 billion).

On the other hand, the United States exported £ 58 billion in 2023 ($ 77.2 billion) in Great Britain. Ten percent of all goods imported by Great Britain came from the United States this year, which are only in second place to Germany.

Machine and transport devices made up the largest proportion of almost £ 20 billion ($ 27 billion), followed by fuel, which is £ 18.7 billion ($ 25 billion).

On the service side, the United States exported £ 102 billion ($ 76 billion) – things such as advertising and banking – to Great Britain and imported £ 170 billion in British services. These are not affected by tariffs.

Could the US deal serve as a blueprint for other US negotiations?

Trump warned that the agreement with his preservation of a 10 percent tariff was not a template for other countries. “This is a low number,” said Trump.

Trump's top negotiating officer has organized a flood of meetings with trading partners on April 2 since the “Liberation Day” tariff.

Although Trump delayed “mutual” tariffs for the implementation of “mutual” tariffs for most countries for most countries by 90 days, he increased them to 145 percent for China. Beijing was again a tariff of 125 percent on US goods.

The mutual tariffs, which varied from 10 percent to 39 percent, should hit countries with which Washington has large trade deficits or impose strong tariffs.

On Tuesday, Trump said that he would check potential trade agreements over the next two weeks to decide which one to accept. Last week he said: “We [already] Potential trade agreements have ”with South Korea and Japan.

After his 90-day postponement, steep mutual tariffs will be imposed on US trading partners in early July, so that the country representatives run from Land in order to avoid adult trade in the world's number one economy.

In what conversations did the US have achieved with other countries?

China

According to the office of the United States' office, the entire goods trade between the United States and China in 2024 was $ 582.4 billion.

The US goods exports to China amounted to a total of $ 143.5 billion, while the US imports from China were $ 438.9 billion. The result is that the US trade deficit with China last year was $ 295.4 billion and 5.8 percent higher ($ 16.3 billion) than in 2023.

The US Finance Minister Scott Bessent will meet this weekend with China's deputy Prime Minister He Lifeng in Switzerland.

The meetings take place in Geneva and are expected to reduce broad tariffs, duties for certain products, export controls and Trump's decision to end “de minimis” recordings with low value imports.

China's Ministry of Commerce said last week that an offer from Washington “rated”. The Geneva meeting will be the first between the two countries since the Trump trade tariffs announced in April.

On Tuesday, Bessent to Fox News said: “We [the US and China] Do you have a common interest that is not sustainable. And 145 percent and 125 percent correspond to an embargo. We don't want to decouple. What we want is fair trade. “

Trump has accused China of manipulating his currency to make his exports cheaper. He also beat Beijing to say goodbye to the market interfering practices such as the direct support of Chinese companies as well as tax benefits and preferred financing.

European Union

In 2023, the European Union was worth 502 billion euros (USD 563 billion) to the USA and again imported 344 billion euros ($ 386 billion), which corresponds to a founding surplus of the EU of EUR 157 billion (USD 177 billion).

After Trump had dropped his 20 percent mutual tariffs for the EU in April in April, the EU made the retaliation for 21 billion euros (24 billion USD) of US goods, also on Harley-Davidson motorcycles, chicken and clothing.

Since then, Brussels has said that it would like to increase US goods imports by 50 billion euros (USD 57 billion) in order to tackle the “problem” in their trade relationship.

Maros Sefcovic, the EU's top negotiator, recently announced the Financial Times that the block “progress” for a deal.

However, Sefcovic proposed that the EU would not accept an indefinite 10 percent tariff for its exports as a fair solution for trade talks. He added that his “ambition” was still to complete a “balanced and fair” deal with the White House.

He also said that he wanted his US colleagues into account US services that are exported to the EU.

The EU experienced a service trade deficit of 109 billion euros (USD 123 billion) with the USA in 2023 in terms of services. This year Brussels exported 319 billion euros (USD 361 billion) for the USA and imported 427 billion euros (USD 483 billion).

If you take this into account, the US total trade deficit would bring the EU to around 50 billion euros (USD 57 billion), he said.

The new US deficit of USD 57 billion could quickly be closed, SEFCOVIC added with offers to buy more US gas and agricultural products. The talks are currently being continued.

India

In the first three months of the 2025 India exported $ 27.7 billion (mainly pharmaceutical and engineering products) to the USA, while they were $ 10.5 billion (mainly aircraft and medical goods), which means a US trade deficit of $ 17.2 billion.

On Tuesday, Trump announced that India had agreed to fall all tariffs on US imports “to nothing”. Neu -Delhi has not yet made an official explanation in which Trump's statements have been confirmed.

At an event of the White House next to the Canadian Prime Minister Mark Carney, Trump said: “India has one of the highest tariffs in the world. We will not stand that. You have agreed to … nothing to fall. You would have done that for anyone except me.”

According to Bloomberg, India has proposed to remove tariffs for selected US imports – including steel, auto parts and drugs – as part of the ongoing bilateral trade talks.

India currently contains tariffs for US imports in the range of 5 percent to 30 percent, depending on the product category.

A zero tariff offer would apply on a change of change and limited to a certain volume of goods.