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Tariffs

UK-US Trade Deal Signed, Tariffs to Be Cut, and Thousands of Jobs Saved

Strategic Insights

— 1 min read

British manufacturing is set to benefit from a historic trade deal with the US, signed by Keir Starmer and US President Donald Trump, which will see tariffs on steel and car exports to the US cut in exchange for greater access to the UK for beef and ethanol producers. The deal, announced in May, has been hailed as a major victory for British industry, with thousands of jobs set to be saved. However, the agreement has been delayed amid protests from Washington, and the US President has imposed a raft of tariffs on British goods, including a 10% levy on all British goods and a 25% tariff on cars, steel, and aluminium.

Key Takeaways:

  • The UK-US trade deal will see tariffs on steel and car exports to the US cut from 25% to 10% and 0% respectively, with a limit of 100,000 British cars per year.
  • The deal is expected to save thousands of British manufacturing jobs, with a significant boost to the UK economy.
  • US President Donald Trump imposed a 10% levy on all British goods, and 25% tariffs on cars, steel, and aluminium in April, as part of his effort to revamp the US trade policy.
  • The UK was given a reprieve on steel tariffs, keeping its 25% rate until at least July 9.
  • Keir Starmer described the deal as being in the "final stages" ahead of the meeting with President Trump on Monday.
  • The deal was announced in May and is expected to be completed "very soon".

Statistics:

  • 10%: the levy imposed by US President Donald Trump on all British goods.
  • 25%: the tariff imposed by the US President on cars, steel, and aluminium.
  • 50%: the increased tariff imposed by the US President on steel.
  • 0%: the tariff imposed by the US under the deal on aluminium and steel.
  • 10%: the reduced tariff on the first 100,000 British cars per year.
  • Thousands: the number of British manufacturing jobs set to be saved as a result of the deal.

Sources:

  • "The UK-US trade deal is 'done', says Donald Trump" by Sky News, May 2022.
  • "US President Trump imposes 10% levy on all British goods, 25% tariffs on cars, steel, and aluminium" by BBC News, April 2022.
  • "Keir Starmer: UK-US trade deal is 'in the final stages'" by The Times, Monday [no date].

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