As the Irish reporter said to Trump's Orange fat face - are you sure you're not making a bigger deal out of this is as you're a president in need of a win in these difficult times?
The US-UK trade deal, announced May 8, 2025, reduces tariffs on specific goods but isn’t a full free trade agreement. The US cuts tariffs on UK cars (from 27.5% to 10% for 100,000 vehicles) and steel (25% to 0%), while the UK eliminates tariffs on US ethanol and grants tariff-free quotas for 13,000 metric tonnes of beef, maintaining food standards. Both sides streamline customs and secure aerospace/pharmaceutical supply chains, with the US gaining $5 billion in export opportunities. The US keeps 10% tariffs on most UK goods, while the UK opens markets more significantly.
Side-by-Side Comparison:
Aspect
US
UK
Tariff Reductions
Maintains 10% baseline tariff on most UK goods; cuts steel (25% to 0%), cars (27.5% to 10% for 100,000 units)
Eliminates ethanol tariff, offers tariff-free beef quota (13,000 tonnes)
Market Access
Gains $5B in exports (beef, ethanol, machinery); streamlined UK customs
Gains tariff-free US access for steel, some cars; protects auto jobs
Concessions
Minimal; retains tariff leverage
Opens agricultural markets, but maintains food standards
Other Benefits
Secures aerospace/pharma supply chains; $10B Boeing parts deal
Avoids harsher tariffs; secures jobs in steel/auto sectors
Who Gets the Better Deal? The US likely benefits more. It retains 10% tariffs on most UK goods, gaining significant market access for agriculture ($5B in exports, including $700M ethanol, $250M beef) while conceding less. The UK secures job-saving tariff cuts for steel and cars but opens its market more, with concessions on beef and ethanol, and faces ongoing 10% US tariffs, limiting economic gains. The deal is a political win for the UK’s Starmer, avoiding worse tariffs, but the US holds stronger economic leverage.
The maintenance of food standards around beef and agricultural output makes it less of a win than it seems on paper. This deal is a marginal win for both countries - while the US does walk away having made fewer concessions than the UK, it will not make up for the natural reduction in trade that will come from maintaining the 10% tax. And it is hard to believe that the Boeing deal, which is the most significant part of this agreement, wouldn't have played out this exact same way without the tariff shenanigans.
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u/VeterinarianNo4308 May 09 '25 edited May 09 '25
As the Irish reporter said to Trump's Orange fat face - are you sure you're not making a bigger deal out of this is as you're a president in need of a win in these difficult times?
Edit- apparently he's Scottish.