U.S. and UK Slap Handles on a Breezy Trade Agreement - Leaving Steel in a Cold Sweat
U.S. and U.K. ink commerce agreement, yet uncertainties remain over steel imports
Donald Trump and Keir Starmer, two peas in a pod as they shared a handshake, announced a squeezing deal for an icy little trade agreement during the G7 summit in the Rockies.
The duo, under the scathing Canadian sun, spilled the beans on the details that'd whittle tariffs on British auto and aerospace exports, but steered clear of conversation 'bout steel.
"Consider it done," Trump boasted, flashing the pages of an allegedly waited-for agreement, whose rollout was smoother than a baby's bottom spray-tanned.
Alas, it was a stumble, for Trump blabbered about an accord with the European Union at first, before he had himself firmly slapped on the wrist by his trusted aides.
The big man claimed the deal in the works is "a fair slice for both," ready to garnish plates with jobs and dosh. Keir, on the other hand, called it a "smashing day" for both nations, a clear sign of friendship.
This deal's a step toward a higher peak as Trump's hurled threats at the world, promising frightful tariffs that'd snagged the attention of markets and raised eyebrows over a possible trade war.
Dishing the Deets
At the G7, the agreement hit the table after Trump and Starmer had earlier said they'd inked a framework for a pact that'd slice U.S. import taxes on British cars, steel, and alcohol in return for wider access to the British market for American swag, like beef and booze.
Monday's pact highlighted only the benefits for the British auto and aerospace sectors, while steel's still at the negotiating table. The British government reaped joyous tidings at the removal of U.S. tariffs on aerospace goods, sparing them a whopping 10% levy.
As for tariffs on British steel, the general idea's a zero-percent levy, but it isn't quite gospel yet. The U.K.'s steel production has nosedived by 80% since the 60s, leaving the industry beleaguered. The devil, as they say, is in the details.
White House potato, Howard Lutnick, promised to divine a quota for steel products sans the previous tariffs. The Brits still stand by their 0% tariff goal for steel products.
The deal omitted any firm commitments on pharmaceuticals, leaving that chapter open for further discussion. The pact also confirmed that Yank farmers could hork beef to the UK, with the British mirroring their delight. The only wrinkle? A British ban on hormone-fueled beef remains.
Closing Woes
With the agreement, America will be able to wade into 13,000 metric tons of British beef each year, while the U.K. will do the same with Yank beef.
It's a grand metaphor for the dent that'll be made in the tariff elephant, but we'll have to wait for finer details to understand the full impact. For now, steel seems to be left out in the cold, with both leaders perhaps wisening up to how tricky that sector can be.
In the end, the deal didn't quite hit the spot for steel, with questions still looming over tariffs. The world extracts a silent breath, waiting for further detail to better understand the taste of this deal.
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- Trump: I'll call tariff shots, y'all just follow
- UK economy's divet sparks predictions for BoE action
- Keywords:
- steel
- American economy
- Trump tariffs
- trade agreement
- British economy
- tariffs
- The trade agreement between the US and UK spared British aerospace goods a 10% levy, but the tariffs on British steel are still under negotiation, with both the White House and the UK government aiming for a 0% levy.
- The recently announced trade agreement between the US and UK only highlighted benefits for the British auto and aerospace sectors, leaving steel production still at the negotiating table, and the devil, as they say, is in the details.
