On the 8th, US President Trump announced at the White House that the United States and the United Kingdom have reached a new trade agreement, partially rolling back tariffs in certain sectors, while further expanding market access for products from both sides.
However, the 10% "benchmark tariff" implemented by the US since April 2 will remain in place.
This is the first formal trade agreement Trump has reached since launching the global "reciprocal tariffs" policy.
Trump stated that the agreement is a "historic breakthrough," and the final details of the agreement will be finalized in the coming weeks.
He indicated that the UK's 10% tariff is not a template for other countries, and it may be the lowest tariff, with other countries possibly having higher tariff rates.
According to documents released by the White House, the first 100,000 cars exported from the UK to the US each year will be taxed at a 10% tariff rate, while the excess will be taxed at a 25% tariff rate. The UK will cut or eliminate non-tariff barriers and expand market access for US beef, ethanol, grain, and some industrial products.
On the other hand, the UK government issued a statement saying that the US and UK will mutually reduce tariffs. The tariffs on UK steel and aluminum products exported to the US will be lifted. The car tariffs for UK imports into the US will be reduced from the current 27.5% to 10%. In addition, within a certain quota, the UK's agricultural exports to the US will be subject to zero tariffs. The UK will lower the tariffs on ethanol imported from the US to zero.
The New York Times reported that the agreement reached between the US and UK seems more like a framework agreement rather than a complete trade agreement. The two sides agreed to eliminate tariffs on some specific goods and reached general consensus in other areas, but government officials from both countries will need to meet in the coming months to finalize the specific terms.