On the British side, Keir Starmer spoke of an “extremely important” agreement for the automotive industry and the British steel industry. In particular, the 25% tax imposed by the United States on imported cars will be reduced to 10% for British vehicles, according to Downing Street.
The American president assured that he did not exaggerate the meaning of the agreement, describing a compromise at the “maximum” reach.
“Trump’s trade war aims to solve a problem that only exists in his imagination”
10% maintained
However, he said that the 10% floor tax announced on April 2 on all goods imported into the United States would remain in place, judging that it is a “low” rate.
The convinced Republican, a convinced protectionist, launched an all -out trade war. In addition to sectoral customs duties, he announced in early April of heavy surcharge against all the trade partners of the United States, which he however suspended later, except for China, whose products are struck by a rate of 145%.
Donald Trump assured that China – with which commercial discussions are scheduled for Switzerland this weekend – just as the European Union wanted to make agreements with him.
He has planned that negotiations with Beijing would be “very substantial” and asked that the Chinese market to “open” American companies.
A source of the British government said it was not a full free trade agreement between the two historic allies, rather a “document of general conditions” establishing compromises, as well as a framework for in-depth discussions later-in particular in the pharmaceutical sector.
-The prestigious British car manufacturers, such as Bentley, Aston Martin or Jaguar, are on the front line, the United States being their first market outside the EU in 2024 (9 billion pounds, 27.4% of exports).
“This situation cannot last”: Europe increases its tone against Donald Trump and presents his plan of attack
Summit with the EU
The United Kingdom, which has returned to its commercial autonomy since its departure from the EU in 2020, has always taken care to save in its comments the unpredictable American president, just as he was careful not to threaten Washington with any reply to his customs duties.
The country benefits from the fact that the bilateral trade in goods has remained in balance in 2024, according to official statistics, the United Kingdom having imported 57.1 billion pounds of American products, for 59.3 billion exports.
The trade balance, however, is largely leaning in favor of London in terms of services, a sector for the moment on the sidelines of the trade war.
If the United States is the second trading partner in the United Kingdom, it is far behind the EU.
The British Minister of Finance, Rachel Reeves, recently stressed that the commercial relationship with Brussels was “probably even more important” than with the United States.
London will welcome the presidents of the EU institutions on May 19, the first summit of this type from Brexit.
