Washington (AP) – President Donald Trump agreed on Thursday to reduce the tariffs for cars, steel and aluminum in Great Britain in a planned trade agreement, but played the possibility that other nations will receive similarly favorable conditions for its import taxes that hike the global economy.
As part of the framework contract, the United Kingdom is intended to buy more American beef and ethanol and rationalize its customs process for goods from the United States. But Trump’s basic tariffs of 10% against British goods should remain in place, and the Republican President suggested that even higher import taxes would be charged for other countries that would try to achieve business with the USA
“This is a low number,” said Trump about the 10% tariff rate in Great Britain and added that other countries are exposed to higher collective bargaining rates in their shops because the USA will carry out trade deficits with them and “in many cases we were not treated properly”.
The announcement provided a political victory for the British Prime Minister Keir Starrer and offered a certain degree of confirmation of Trump’s claims that his turbulent trade approach could be able to train the global economy on its preferred conditions. While the deal should improve the British situation compared to Trump to impose fresh tariffs, the global economy is still in the confusion and uncertainty, which is unleashed by the president’s import tax. The deal with Great Britain would be a sensible but compact step towards greater clarity.
The US President spoke on the framework with reporters in the Oval Office, although the compact print stays in the river.
“We will have everything very conclusive in the coming weeks,” said Trump.
The president said that the agreement would lead to more beef and ethanol exports to Great Britain and that the processing of US goods would rationalize by customs. Minister of Commerce Howard Lutnick said that the 10% tariffs would remain able to remain and that a non -specified British company would announce the purchase of aircraft of $ 10 billion from Boeing.
The British officials said that Trump’s auto duties would enhance from 100,000 vehicles from 27.5% to 10% and import taxes on steel and aluminum to zero. According to Starrer, Great Britain would preserve its health and security standards for food.
The British government also said that it would also reduce the tariffs for 2,500 US products such as olive oil, wine and sports equipment, which reduces the average tariff rate 1.8%.
Strand, who spoke to Trump by phone while reporters listened, emphasized how significant the relationship between the two countries was remembered as the anniversary of the victory of the Second World War in Europe.
“To announce this very much, almost in the same hour, on the same day for 80 years,” said Startmer, “I find it incredibly important and really do this historically.”
Starrer later spoke to workers in a Jaguar Land Rover plant and promoted the deal that he said would protect thousands of autojobs. He told the workers that “this is only the beginning” and says: “We hammer further details to reduce trade with the United States and all over the world.”
While he celebrated the planned deal, Trump spoke despite a concern of a possible slowdown and an enhance in inflation about the future of the US economy, which could impair the financial well-being of most Americans and lead to layoffs.
The President said that the public should go to the stock exchange because the United States shortly before the ascent like a “rocket ship”, even when he reports on fewer container ships that dock in the USA and companies, from Wiet when the tariffs are available.
Trump said that less container ships arrived from China mean “lose less money” by the trade deficit, although the goods in these ships are used by US manufacturers and sold by retailers in a way that can support jobs and can hold prices at the same time.
When asked about companies who said they had to enhance prices because of the tariffs, Trump said: “I think they just try to negotiate business with me.” Trump suggested that he could set a Mattel toy 100% tariffs if they did not move their factories to the United States.
Trump claimed that there is “practically” no inflation. The preferred inflation measure of the Federal Reserve has increased by 2.3% annually, slightly higher than the 2% goal of the central bank.
The US President said on Thursday that FED chairman Jerome Powell should reduce the Benchmark interest rates of the Fed, which should manage inflation and said that Powell will keep the Fed’s prices at the latest level instead of reducing them because he is not in love with me. Powell warned at a press conference on Wednesday that the tariffs created uncertainty and the Fed could afford to wait for further data to show the effects on the economy.
The United States is already operating a trade surplus in Great Britain, which makes it a little easier to find similarities at a time when Trump has its tariffs when removing the annual trade deficits with several nations, of which he says that they have exploited the USA
A British government official who insisted on anonymity to discuss the discussions said that Great Britain had planned to apply for greater trade liberalization if the negotiations are continued, so that the tariff rate accused by the United States could be lower than the 10% primary line.
The official said that the talks were built on the long end of the two nations and that the key when he was charming in discussions with the Trump administration and knows how to say “no”.
No fresh offers were achieved with the largest trading partners in the United States, including Canada, Mexico and China. Trump left the highest tariffs in China and triggers a confrontation between the two largest economies in the world. Washington and Beijing send officials to Switzerland this weekend to get a first round of trade talks.
Trump said on Thursday that he could “lower” the rate of 145% for Chinese goods if the weekend talks are going well.
“You can’t get higher at the moment,” said Trump. “It’s at 145, so we know that it will come down.”
The United States and the United Kingdom have had been in 2016 since the British people chose a bilateral trade agreement to leave the European Union and enables the country to negotiate the rest of the continent. The then Prime Minister Boris Johnson observed a future contract with the United States as an incentive for Brexit.
Negotiations began in 2020, while Trump’s first term. However, the talks made little progress among President Joe Biden, a democrat and critic of Brexit. The negotiations were resumed after Trump returned to office in January and intensified in the past few weeks.
According to Census Bureau, the United States triggered a trade surplus of 11.9 billion US dollars near Great Britain with Great Britain last year. The 68 billion US dollars that the United States imported from Great Britain last year accounted for only 2% of all goods imported into the country.
The United States is far more significant for the British economy. According to state statistics, it was the largest trading partner of the UK last year, although the majority of British exports to the United States are more services than goods.
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Jill Lawless reported from London. Associated Press Writer Zeke Miller contributed to this report.
