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US President Donald Trump announced on Thursday (May 8) that his administration had reached a trade agreement with the United Kingdom – the first such deal since his widespread tariffs were imposed on American business partners. Speaking from the Oval Office, Trump called the deal “maximum-out” agreement that would promote American exports and benefit both countries.
Major trade concessions
Under the deal, UK will reduce non-tariff barriers on a series of American goods including beef beef, ethanol fuel, machinery and chemicals. However, the Trump administration has widely implemented 10% baseline tariffs, while tariffs on British vehicles entering the US will fall from 25% to 10%.
Commerce Secretary Howard Lutnik highlighted economic benefits during the announcement of the Oval Office:
“We have exposed the new market access – ethanol, beef, machinery, all agricultural products,” said Lutnik. “They have agreed to open their markets, and it will add an opportunity of $ 5 billion to American exporters.”
Tariff shift for cars
“They can send 100,000 cars to the US and pay only 10% tariffs in the US, and it protects their car industry,” Lutnik said in detail on the influence of the auto sector.
‘Max-out’ but flexible deal
The scope of the agreement was suppressed by reporters – after the British Ambassador Peter Mandelson, it was described as “only one early point” – emphasized that the deal was widespread.
“This is a maximum-out deal that we are going to make big and we make it big through development,” Trump said. “There will be changes, there will be adjustments because we are flexible … but it is very decisive, and we, we think everyone is going to be happy.”
UK sees it as a platform
Earlier, Mandelson accepted the importance of the deal but deployed it as an initial step instead of final achievement.
“The deal provides us for platform, the springboard that I think will be even more valuable for our two countries in the future,” Mandelson said to reporters. He insisted: “This is not the end – this is just the beginning. There we can do more to reduce tariffs and business obstacles so that today we can open our markets for each other, we are still agreeing today.”
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