Trump keeps 10 pc tariffs on UK but cuts taxes on British autos, steel and aluminium with trade deal

WASHINGTON: President Donald Trump agreed on Thursday to cut tariffs on UK autos, steel and aluminium in a planned trade deal but played down the possibility of other nations getting similarly favourable terms on his import taxes, which are roiling the global economy.

Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States. But Trump’s baseline 10% tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the US.

“That’s a low number,” Trump said of the UK's 10% tariff rate, adding that other countries would face higher tariff rates in their deals because the US runs trade deficits with them and “in many cases, they didn’t treat us right.”

The announcement provided a political victory for UK Prime Minister Keir Starmer and offered a degree of validation for Trump’s claims that his turbulent approach on trade may be able to rebalance the global economy on his preferred terms. While the deal should improve Britain’s situation relative to when Trump began imposing new tariffs, the world economy is still mired in the confusion and uncertainty unleashed by the president’s import taxes. The deal with the UK would be a resonant but small step toward greater clarity given that Britain represents a fraction of US imports.

The US president talked up the framework to reporters in the Oval Office, although the fine print remains in flux.

“In the coming weeks, we’ll have it all very conclusive,” Trump said.

The president said the agreement would lead to more beef and ethanol exports to the UK, and streamline the processing of US goods through customs. Commerce Secretary Howard Lutnick said the baseline 10% tariffs would stay in place and said an unspecified British company would be announcing the purchase of $10 billion in aircraft from Boeing.

Cars, steel and olive oil

UK officials said Trump’s auto tariffs would go from 27.5% to 10% on a quota of 100,000 vehicles and the import taxes on steel and aluminium would go from 25% to zero. Starmer said Britain would preserve its health and safety standards on food products.

By RSS/AP