The USA and the UK Have Signed a Historic Trade Agreement with New Tariffs
The USA and the UK have officially signed a new trade agreement, marking an important milestone in the relationship between the two countries. US President Donald Trump described this event as historic on the social media platform Truth Social, emphasizing its significance for the American economy and the partnership with London.
This is reported by AgroReview
Key Provisions of the Agreement and Economic Impact
“Today (May 8) is an incredible day for America as we enter into 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 achieved our first historic Trade Agreement since the Day of Liberation,” Trump wrote.
According to the details of the agreement, the United States will gain $6 billion in revenue from implementing 10% tariffs on British goods, along with an additional $5 billion in new opportunities for exporting American products. The agreement also establishes a free trade zone for aluminum and steel, ensuring supply stability. Additionally, commitments are outlined to guarantee uninterrupted supplies of pharmaceutical products.
Customs Policy and Changes in the Global Market
It is worth noting that on April 2, the Trump administration imposed additional tariffs on imports from 185 countries. The base rate for the UK and other countries was set at 10%, while for China it was 34%, for EU countries it was 20%, for Switzerland it was 31%, for Israel it was 17%, and for Kazakhstan it was 27%. Russia, North Korea, Cuba, and Belarus were exempt from additional tariffs due to existing sanctions that already restrict trade with these countries. The Trump administration also imposed an additional 25% tariff on the import of cars and components.
On April 9, Trump announced a 90-day pause in further tariff increases for most countries, while maintaining a trend of gradual tariff increases on Chinese goods. Currently, the tariff rate for Chinese exports to the USA stands at 145%. In response, China immediately implemented mirror tariffs on American goods.
The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, noted that due to mutual tariff restrictions, trade between the USA and China could decrease by 80%.