Trump’s first trade deal: US signs agreement with Great Britain

The United States has signed a new trade agreement with the United Kingdom. US President Donald Trump wrote about this on the Truth Social social network.

“Today (May 8) is an incredible day for America, as we conclude our first Fair, Open and Reciprocal Trade Agreement – something our previous Presidents never cared about. Together with our strong ally, the United Kingdom, we have reached the first historic Trade Agreement since Emancipation Day,” Trump wrote.

According to him, thanks to the implementation of this agreement, the United States will receive $ 6 billion in revenue from 10% tariffs on British goods, as well as $ 5 billion in new export opportunities for American manufacturers.

In addition, the agreement provides for the creation of a free trade area for aluminum and steel, as well as ensuring a stable supply chain for pharmaceutical products.

As reported, on April 2, Trump announced the introduction of additional duties on imports of goods from 185 countries around the world. The base rate was 10%, including for the UK, but for many countries the tariff rates are higher. Tariffs on goods from China were initially 34%, from the EU countries – 20%, from Switzerland – 31%, from Israel – 17%, from Kazakhstan – 27%. At the same time, tariffs were not introduced for Russia, North Korea, Cuba and Belarus. The Trump administration explained that sanctions are in place for these countries, so trade with them is already limited. In addition, Trump introduced an additional tariff on imports of cars and spare parts for them in the amount of 25%.

At the same time, on April 9, Trump announced a 90-day pause in increasing tariffs for most countries, but before that he gradually increased tariffs on Chinese goods. The US tariff rate on Chinese imports is currently 145%. China was one of the few countries that immediately retaliated against Trump’s tariffs.

According to World Trade Organization Director-General Ngozi Okonjo-Iweala, the introduction of reciprocal tariffs could cause trade in goods between the United States and China to fall by 80%.

Tags: UK, USA