US and UK seal first deal of Donald Trump’s trade war

The UK has made the first deal with the United States since President Donald Trump sparked a trade war, and won discounts on punitive definitions on car and steel exports, but it failed to reversed a 10 percent flat tax that applies to most of the goods.

The agreement was revealed on Thursday by the US President at the Oval Office, with Prime Minister Sir Kerr Starmer joined the phone. Both leaders effectively praised the strong relationship between their countries.

But the scope of the United States of America deal is limited, and it must be settled in many details and the end result is letting Britain face a more strict trade relationship with America by Trump provided comprehensive global definitions last month.

American stocks rose after the announcement, as investors encouraged the possibility of more deals – including China – to reduce the damage of fees that suffocated trade. The S&P 500 has risen over 1 percent, to the highest level during the day since March 27, before waiver the Earth and the day ends with 0.6 percent.

US Treasury Secretary Scott Beesen and senior Chinese officials in Switzerland will meet this week to try to inflict a tariff war between the world’s largest economists.

“I will tell you that China wants to make a deal. We will see how it works,” Trump said. He was asked if he would consider reducing American definitions on Chinese imports, the US president replied: “At the present time, you can’t get anything higher. It is in 145 [per cent]So we know that it comes down. “

The agreement of the United States of America, which Trump described as “complete and comprehensive”, will remain in place on American buildings by 10 percent on most British exports imposed by Trump last month.

According to the text of the agreement issued later on Thursday, the two sides were scheduled to continue negotiating the tariff cuts on the “important sectors”.

But it decisively provides the UK in a postponement of the 25 percent additional definitions on cars and minerals that the Trump administration had previously set and was of special pressure for Britain.

British exports of steel and aluminum will now be a zero classification of definitions, according to the UK government, while the first 100,000 British cars are sold in the United States annually-the vast majority of the total-will be reduced to 1 percent of a tax.

“This historic deal for British business and British workers is available,” said Starmer said.

On the other hand, the United Kingdom will provide us with farmers and livestock breeders to improve market access through the quota system, but without changing food standards, paving the way for some cow meat imports. The UK will remove the collective tariffs on a liter of up to 1.4 billion American ethanol.

“Our biggest concerns have been distinguished from this. The agricultural sectors have been distinguished to bear the heavy burden to remove the customs tariff for other industries in the economy,” said Tom Bradche, President of the UK National Farmers Union.

Trump and Sarmer teams also agreed to work on a digital trade agreement to deepen cooperation and address American concerns about the UK digital services tax targeting large technology, which is currently valid.

The two sides agreed to negotiate more pharmaceutical commodities, which US officials said will adhere to the definitions within weeks.

“The United States and the United Kingdom are working for years to try to make a deal, and never got there. I did this with this Prime Minister,” Trump at the White House, surrounded by JD Vance, Vice President, Howard Lottenic, USA Minister of Commerce, and Roses Peter Mandleson, said in the United Kingdom to Washington.

Starmer said, in the speech of workers at the Jaguar Land Rover Factory in West Midlands, that the agreement was a practical start. “This is the preserved jobs, and the job has not been accomplished,” he said. “We will continue to build on this agreement.”

He said he also negotiated the “preferential treatment” of the United Kingdom if Trump in the future decides to raise definitions on medicines or other sectors, including films.

But Andrew Griffiths, conservative spokesperson for the conservative trade, said that the agreement was disappointing, describing it as “a food coke deal, not the real thing.” “We have just been subjected,” said Conservative Party leader Kimi Badnouch.

The United States Agreement with the United Kingdom can provide a template for US negotiations with other countries – with India, Vietnam, Japan and South Korea, which are seen as closest to agreements with Washington.

But Trump has warned that the United States will insist that the total fees on countries that have significant trade surpluses with America can remain more than 10 percent. “Some will be much higher,” he said. “The 10 template is probably the lowest,” he added.

The United States of America deal also raised questions between legal and commercial experts about whether it is in line with the rules of global trade regulation that requires the application of tariffs on an equal footing.

Ignacio García Bercero, a former European High Commissioner now at the Think Bruegel Center, said the UK decision to reduce the customs tariff for American exporters without expanding the same deal to other countries that risk legal challenges.

According to the concept of the “most preferred country” of the World Trade Organization, countries must provide the same definitions to all countries, unless it is reduced through a bilateral commercial deal that covers “all trade to a large extent”, which was announced by the United Kingdom’s agreement on Thursday.

“It is worrying whether the UK has made preferential introductory concessions to the United States. In the absence of any commitment by the United States to get rid of the tariff for other countries, this cannot be justified,” Persero added.

But one of the commercial lawyers, who refused to be named, indicated that the rules of the World Trade Organization allowed to audit trade deals. “They can say that it is the beginning of the negotiations of the Free Trade Agreement and then takes 10 to 15 years of closing.”

Additional reports by Kate Duguid in New York