Trump and Starmer unveil trade breakthrough

U.S. President Donald Trump and UK Prime Minister Keir Starmer have announced a "breakthrough" trade deal between the United States and the United Kingdom, marking the first such agreement since Trump's implementation of global tariffs.

The key provisions of the deal include:

- Automotive Tariffs: The U.S. will reduce tariffs on British car exports from 27.5% to 10% for up to 100,000 vehicles annually, benefiting UK automakers.

- Steel and Aluminum: U.S. tariffs on British steel and aluminum, previously set at 25%, will be eliminated, providing relief to UK metal exporters.

- Agricultural Products: The UK will lower tariffs on select American agricultural exports, including beef and ethanol, under specific quotas. However, the UK maintains its food safety standards, prohibiting imports of hormone-treated beef.

- Digital Services Tax: The UK retains its 2% digital services tax, and no concessions were made regarding digital or online safety regulations.

Prime Minister Starmer hailed the deal as "historic," emphasizing its role in safeguarding thousands of UK jobs. However, critics argue that the UK conceded too much, as U.S. tariffs on UK goods remain, including a baseline 10% tariff.

Industry leaders have welcomed the agreement, noting the relief it provides to key sectors like automotive and farming. However, concerns persist about the limited scope of the deal and the potential for future concessions on contentious issues.

The agreement also facilitated a $10 billion order from British airlines for Boeing planes and duty-free access for Rolls-Royce engines, signaling a strengthening of economic ties between the two nations.

While the deal represents a significant step towards deeper economic cooperation, both sides acknowledge that comprehensive issues remain unresolved. Further negotiations are expected to address these areas, aiming for a more expansive trade agreement in the future.