Trump set to implement major provisions of US-UK trade deal

Donald Trump is preparing to implement crucial elements of a new US-UK trade agreement to reduce tariffs on British cars exported to the United States. The deal will also allow American beef and ethanol to enter the UK under generous duty-free quotas. Trump and UK Prime Minister Sir Keir Starmer first announced the deal on May 8, when they signed a five-page agreement called the “Economic Prosperity Deal” during a press conference. Trump signs off car and farming trade deal to start soon US officials confirmed on Thursday that the first sections of the new US-UK trade agreement on British car exports to the US and American agricultural products entering the UK will take effect within days. US Commerce Secretary Howard Lutnick posted on X saying, “We agreed to implement our historic trade deal as soon as possible, starting with the agreed quotas for UK autos, and US beef and ethanol, becoming simultaneously active in the coming days.” The UK can now export up to 100,000 vehicles to the United States each year, with car tariffs dropping from 27.5% to 10% to make British cars significantly more affordable in the American market. Top UK car manufacturers like Jaguar Land Rover and Bentley said the new deal will increase sales across the Atlantic and support more jobs in the UK. Additionally, it will compete better with carmakers from other countries. The UK auto industry has long waited for this tariff reduction after facing economic pressure, global competition and recent challenges with supply chains and Brexit-related changes. About 13,000 tonnes of beef and 1.4 billion liters of ethanol from the US will enter the UK without facing any import taxes or fees. This move aims to provide American farmers and ethanol producers with a new, profitable outlet to sell their goods at competitive prices. President Trump’s April 2 announcement of “ reciprocal tariffs ” on a wide range of global imports shocked most of America’s trade partners. It pushed them to rush into negotiations to avoid being hit by high duties. The US gave all countries a 90-day window to reach trade agreements and set the deadline for July 9. The UK has an early advantage in accessing US markets before other countries because it is currently the only nation that has completed and finalized a deal during the negotiation period. UK industries protest US deal over job and market risks While carmakers and US farmers stand to gain from the new trade deal, British farmers and bioethanol plant owners in the UK say the arrival of large quantities of cheaper American goods could make it harder for them to stay in business. Bioethanol producers Ensus in Wilton, Teesside, and Vivergo in Saltend, near Hull, publicly warned that the US ethanol quota of 1.4 billion liters could fill the whole market. Moreover, it may leave no room for domestic producers to compete because it’s worth the yearly demand for ethanol in the UK. Industry leaders fear the agreement will force them to shut down completely, destroy jobs, harm the UK’s energy independence. It may also weaken the sustainability goals tied to biofuels in the country because both Ensus and Vivergo were already operating at a loss. The UK government acknowledged the problem and said it is “working closely” with the affected companies to find support options, but has yet to issue a clear plan or announce funding. Industry groups say the government’s offer to the US shows a lack of support for the domestic energy sector and sends the wrong message about the importance of green fuel production in the UK. UK steelmakers are also awaiting the final details of their portion of the trade deal. A key concern is the US “melted and poured” requirement, which mandates that all steel imported into the US must be fully melted and poured in its country of origin. Steel from UK companies like Tata Steel could be denied tariff-free access to the US market despite being processed in Britain. This is because it is imported as semi-finished steel from India and the Netherlands, finished in the UK, and then exported. The trade body representing steel in the country, UK Steel, said many producers could be left out of the deal completely. More jobs could be lost if the strict rule stays in place because their country’s steel exports are crucial for several British plants to survive. Both industries now wait for the next steps and hope for changes to protect local businesses while allowing the larger trade agreement to move forward. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More

Source: Cryptopolitan