The United States has announced a “breakthrough” with the United Kingdom that would create an aluminum and steel negotiation area and secure the pharmaceutical supply chain.
The agreement says that “reciprocity and equity are a vital principle of international trade” and increases access to American agricultural products, said US President Donald Trump on Thursday, although he added that end details were still in writing.
“The latest details are being written,” Trump told journalists. “In the coming weeks, we will have all very conclusive.”
The agreement, the first struck by the United States since Trump imposed its large-scale prices, is also supposed to withdraw documents for British companies that seek to export to the United States.
The president said that the agreement would lead to more exports of beef and ethanol to the United Kingdom, which would also rationalize the treatment of American products through customs.
The White House said that the agreement would report $ 6 billion in external income compared to its 10%prices, which will remain in place, but that it would also bring back $ 5 billion in new export opportunities. The United Kingdom agreed to reduce its prices to 1.8% against 5.1% and provide better access to American goods.
The United States already manages a trade surplus with the United Kingdom, which facilitates the withdrawal of common ground, because Trump has put its prices on the specific elimination of annual trade deficits with several nations which, according to him, have benefited from the United States.
British Prime Minister Keir Starmer joined the president in the phone announcement. Starmer said the agreement would increase trade and create jobs.
Thursday’s announced agreement is the first agreement since the Trump administration launched a world trade war with universal levies of 10%. The United States has also imposed 25% prices on cars, steel and aluminum, 25% prices in Canada and Mexico and 145% tariffs on China. US and Chinese officials are expected to hold talks in Switzerland on Saturday.
British implications
Starmer concluded a warm relationship with Trump since his Labor Party on the left was elected in July.
The Government of Starmer sought to establish new trade relations after Brexit with the United States, China and the EU without moving so far towards a block that it makes the others.
Economists and the CEO of an FTSE 100 company – Blue Chip companies the most uppercase on the London Stock Exchange – said that the immediate economic impact of a tariff agreement was probably limited, but that the trade agreements in general would help long -term growth. The United Kingdom has concluded a free trade agreement with India this week.
The United States and the United Kingdom have aimed to conclude a bilateral trade agreement since the British people voted in 2016 to leave the EU, allowing the country to negotiate independently of the rest of the continent. The Minister of the time, Boris Johnson, praised a future agreement with the United States as an incentive to Brexit.
The United States has led a trade surplus of $ 11.9 billion in goods with the United Kingdom last year, the census office said. The $ 68 billion in goods that the United States imported from the United Kingdom represented only 2% of all goods imported into the country.
The markets respond
The United States was under pressure from investors to conclude agreements to defuse its tariff war after Trump’s often chaotic policy has turned world trade with friends and enemies, threatening to stod and start a recession.
Senior American officials have embarked on a wave of meetings with business partners since the president on April 2 imposed a tariff of 10% in most countries, as well as higher rates for many business partners who were then suspended for 90 days.
To Wall Street, the American markets responded to the news in the hope that this could be enough to keep a recession away.
At 11:30 a.m. in the United States (3.30 p.m. GMT), the S&P 500 increased by 0.97% and on the right track for an 11th gain in the last 13 days. The industrial average of Dow Jones was 1.02% higher and the Nasdaq composite rich in technology was 1.17% higher than the operating market.
Actions have been swinging for weeks in the hope that Trump could conclude agreements with other countries that would reduce his prices, which, according to many investors, would cause a recession if they are not controlled.
