U.S., UK Unveil Bilateral Trade Pact Amidst Global Tariff Overhaul
(MENAFN) Following President Trump's recent implementation of universal baseline tariffs, the United States and the United Kingdom have unveiled a significant bilateral trade agreement. This landmark deal, the first of its kind since the new tariff regulations were announced on April 2nd, aims to substantially increase American access to the UK market.
The White House revealed on Thursday that the newly forged trade agreement with the United Kingdom is expected to generate a $5 billion market for American farmers, ranchers, and producers. According to the administration, the specifics of the deal encompass provisions facilitating over $700 million in ethanol exports and $250 million in agricultural products, including beef. Moreover, the agreement aims to enhance both industrial and agricultural market access for both the United States and the UK.
According to the White House, the agreement will bolster U.S. competitiveness by addressing loopholes in the UK's procurement market, simplifying customs processes for American exports, and establishing robust standards for intellectual property, labor, and environmental safeguards. It also aims to secure supply chains for crucial U.S. sectors such as aerospace and pharmaceuticals by ensuring preferred access to high-quality UK aerospace components and dependable pharmaceutical supplies.
A reciprocal 10% tariff rate, coinciding with Liberation Day, is now in effect. The agreement stipulates that the initial 100,000 UK-manufactured vehicles imported annually into the U.S. will be subject to a 10% tariff, with subsequent vehicles facing a 25% rate. This development occurs against the backdrop of President Trump's earlier announcement of a 25% tariff on all automotive imports worldwide.
Notably, the U.S. will also engage in separate negotiations regarding the Section 232 tariffs on UK automobiles, steel, and aluminum, acknowledging the UK's efforts to address global steel overcapacity. This move effectively establishes a novel trading alliance for steel and aluminum between the two nations.
The agreement is being touted as ushering in a "golden age" of prospects for U.S. exporters, creating a more equitable environment for American producers and setting a standard for reciprocal trade relationships with other global partners. In 2024, the total value of goods traded between the two countries reached $148 billion.
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