White House announces trade deal with UK
First 100,000 vehicles imported into the United States by UK car manufacturers each year will be subject to the reciprocal tariff rate of 10% currently in effect.
The White House today announced a trade deal between the United States and the UK had been reached.
According to the White House fact sheet, under the agreement, the first 100,000 vehicles imported into the United States by UK car manufacturers each year will be subject to the reciprocal tariff rate of 10% currently in effect, and any additional vehicles will be subject to the previously announced 25% tariff on imported automobiles. Read TradeNewsFlash
The United States will also negotiate an alternative arrangement to the Section 232 tariffs on steel and aluminum, recognizing the economic security measures taken by the UK to combat global steel excess capacity.
General terms of “Economic Prosperity Deal”
The White House also posted on its website an announcement of the initiation of negotiations for the U.S.-UK Economic Prosperity Deal (EPD).
The EPD seeks to grow trade, remove business barriers, and strengthen the economic partnership between the United States and the UK. Key aspects include tariff reductions (e.g., in particular, with respect to imports of beef and pharmaceuticals), improved market access for agricultural products, and the negotiation of digital trade provisions. The deal also focuses on economic security, procurement commitments, and intellectual property rights.
The arrangement is set to become operative immediately and is designed to be expanded over time to cover additional areas. However, both the United States and the UK recognize that the document does not constitute a legally binding agreement.