US and UK strike trade deal as Trump slashes tariffs on British steel and cars
Donald Trump has agreed to slash US tariffs on British cars and steels as part of a "historic" trade deal between America and the UK.
The agreement is the first to be announced since Mr Trump triggered a global trade war with a barrage of levies on trading partners after his return to the White House in January.
The joint announcement by the US president and UK Prime Minister Keir Starmer was made on the 80th anniversary of VE Day, when the two countries fought side-by-side to defeat Nazi Germany.
The pact, which is expected to save thousands of jobs in British industry threatened by the Trump administration's tariff agenda, will see tariffs on steel and aluminium exports from Britain to the US cut from 25 per cent to zero.
In addition, tariffs on an annual quota of 100,000 British cars sold to the US will be cut from 27.5 per cent to 10 per cent.
Britain, meanwhile, agreed to lower its tariffs to 1.8 per cent from 5.1 per cent and provide greater market access to US goods.
The 10 per cent "baseline" tariff, placed on most of America's trading partners on so-called "liberation day" last month, remains in place.
"It opens up a tremendous market for us," Mr Trump said during a teleconference, which was broadcast on Thursday, local time.
"This is a really fantastic, historic day," Sir Keir said by teleconference.
The US has been under pressure from investors to strike deals to de-escalate its tariff war after Mr Trump's often chaotic policymaking up-ended global trade with friends and foe alike, threatening to stoke inflation and start a recession.
Top US officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 per cent tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days.
The US has also imposed 25 per cent tariffs on autos, steel and aluminium, 25 per cent tariffs on Canada and Mexico, and 145 per cent tariffs on China. US and Chinese officials are due to hold talks in Switzerland on Saturday.
With the British economy struggling to grow, the tariffs had added to the pressure on Sir Keir's government.
Jaguar Land Rover had paused its shipments to the US for a month and the government was forced to seize control of British Steel to keep it operating.
While seeking a deal with the US, Britain had refused to lower its food standards, which are closely aligned with the European Union.
However, Britain's farming trade union has said that some US producers who do not use growth hormones or antimicrobial washes could be given greater market access.
The UK government has been seeking to build new trading relationships post-Brexit with the US, China and the EU without moving so far towards one bloc that it angers the others.
There are also domestic political risks.
Polling shows the government remains deeply unpopular, making any move to cut taxes on multi-national tech companies a big risk.
Britain's digital service tax, levied at 2 per cent of UK revenue for online marketplaces, search engines and social media platforms, was introduced in 2020 in response to an outcry about tax avoidance by big tech. It will continue unchanged.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
33 minutes ago
- The Advertiser
US helps Israel shoot down barrage of Iranian missiles
American air defence systems and navy assets in the Middle East helped Israel shoot down incoming ballistic missiles that Tehran launched in response to Israeli strikes on Iran's nuclear facilities and top military leaders, US officials say. The US has both ground-based Patriot missile defence systems and Terminal High Altitude Area Defense systems in the region capable of intercepting ballistic missiles, which Iran fired in multiple barrages in retaliation for Israel's initial attack. Naval assets also were involved in assisting Israel on Friday as Iran fired missiles at Tel Aviv, one official said. The United States also is shifting military resources, including ships, in the Middle East in response to the strikes. The navy had directed the destroyer USS Thomas Hudner, which is capable of defending against ballistic missiles, to begin sailing from the western Mediterranean Sea toward the eastern Mediterranean and had directed a second destroyer to begin moving forward so it could be available if requested by the White House, US officials said. American fighter jets also are patrolling the sky in the Middle East to protect personnel and installations, and air bases in the region are taking additional security precautions, the officials said, speaking on the condition of anonymity. President Donald Trump met his National Security Council principals on Friday to discuss options. The forces in the region have been taking precautionary measures for days, including having military dependents voluntarily depart regional bases, in anticipation of the strikes and to protect personnel in case of a large-scale response from Tehran. Typically, about 30,000 troops are based in the Middle East, and about 40,000 troops are in the region now, according to a US official. That number surged as high as 43,000 last October amid the ongoing tensions between Israel and Iran as well as continuous attacks on commercial and military ships in the Red Sea by the Iranian-backed Houthis in Yemen. The navy has additional assets that it could send to the Middle East if needed, particularly its aircraft carriers and the warships that sail with them. USS Carl Vinson is in the Arabian Sea - the only aircraft carrier in the region. The carrier USS Nimitz is in the Indo-Pacific and could be directed towards the Middle East if needed, and USS George Washington just left its port in Japan and could also be directed to the region, one official said. American air defence systems and navy assets in the Middle East helped Israel shoot down incoming ballistic missiles that Tehran launched in response to Israeli strikes on Iran's nuclear facilities and top military leaders, US officials say. The US has both ground-based Patriot missile defence systems and Terminal High Altitude Area Defense systems in the region capable of intercepting ballistic missiles, which Iran fired in multiple barrages in retaliation for Israel's initial attack. Naval assets also were involved in assisting Israel on Friday as Iran fired missiles at Tel Aviv, one official said. The United States also is shifting military resources, including ships, in the Middle East in response to the strikes. The navy had directed the destroyer USS Thomas Hudner, which is capable of defending against ballistic missiles, to begin sailing from the western Mediterranean Sea toward the eastern Mediterranean and had directed a second destroyer to begin moving forward so it could be available if requested by the White House, US officials said. American fighter jets also are patrolling the sky in the Middle East to protect personnel and installations, and air bases in the region are taking additional security precautions, the officials said, speaking on the condition of anonymity. President Donald Trump met his National Security Council principals on Friday to discuss options. The forces in the region have been taking precautionary measures for days, including having military dependents voluntarily depart regional bases, in anticipation of the strikes and to protect personnel in case of a large-scale response from Tehran. Typically, about 30,000 troops are based in the Middle East, and about 40,000 troops are in the region now, according to a US official. That number surged as high as 43,000 last October amid the ongoing tensions between Israel and Iran as well as continuous attacks on commercial and military ships in the Red Sea by the Iranian-backed Houthis in Yemen. The navy has additional assets that it could send to the Middle East if needed, particularly its aircraft carriers and the warships that sail with them. USS Carl Vinson is in the Arabian Sea - the only aircraft carrier in the region. The carrier USS Nimitz is in the Indo-Pacific and could be directed towards the Middle East if needed, and USS George Washington just left its port in Japan and could also be directed to the region, one official said. American air defence systems and navy assets in the Middle East helped Israel shoot down incoming ballistic missiles that Tehran launched in response to Israeli strikes on Iran's nuclear facilities and top military leaders, US officials say. The US has both ground-based Patriot missile defence systems and Terminal High Altitude Area Defense systems in the region capable of intercepting ballistic missiles, which Iran fired in multiple barrages in retaliation for Israel's initial attack. Naval assets also were involved in assisting Israel on Friday as Iran fired missiles at Tel Aviv, one official said. The United States also is shifting military resources, including ships, in the Middle East in response to the strikes. The navy had directed the destroyer USS Thomas Hudner, which is capable of defending against ballistic missiles, to begin sailing from the western Mediterranean Sea toward the eastern Mediterranean and had directed a second destroyer to begin moving forward so it could be available if requested by the White House, US officials said. American fighter jets also are patrolling the sky in the Middle East to protect personnel and installations, and air bases in the region are taking additional security precautions, the officials said, speaking on the condition of anonymity. President Donald Trump met his National Security Council principals on Friday to discuss options. The forces in the region have been taking precautionary measures for days, including having military dependents voluntarily depart regional bases, in anticipation of the strikes and to protect personnel in case of a large-scale response from Tehran. Typically, about 30,000 troops are based in the Middle East, and about 40,000 troops are in the region now, according to a US official. That number surged as high as 43,000 last October amid the ongoing tensions between Israel and Iran as well as continuous attacks on commercial and military ships in the Red Sea by the Iranian-backed Houthis in Yemen. The navy has additional assets that it could send to the Middle East if needed, particularly its aircraft carriers and the warships that sail with them. USS Carl Vinson is in the Arabian Sea - the only aircraft carrier in the region. The carrier USS Nimitz is in the Indo-Pacific and could be directed towards the Middle East if needed, and USS George Washington just left its port in Japan and could also be directed to the region, one official said. American air defence systems and navy assets in the Middle East helped Israel shoot down incoming ballistic missiles that Tehran launched in response to Israeli strikes on Iran's nuclear facilities and top military leaders, US officials say. The US has both ground-based Patriot missile defence systems and Terminal High Altitude Area Defense systems in the region capable of intercepting ballistic missiles, which Iran fired in multiple barrages in retaliation for Israel's initial attack. Naval assets also were involved in assisting Israel on Friday as Iran fired missiles at Tel Aviv, one official said. The United States also is shifting military resources, including ships, in the Middle East in response to the strikes. The navy had directed the destroyer USS Thomas Hudner, which is capable of defending against ballistic missiles, to begin sailing from the western Mediterranean Sea toward the eastern Mediterranean and had directed a second destroyer to begin moving forward so it could be available if requested by the White House, US officials said. American fighter jets also are patrolling the sky in the Middle East to protect personnel and installations, and air bases in the region are taking additional security precautions, the officials said, speaking on the condition of anonymity. President Donald Trump met his National Security Council principals on Friday to discuss options. The forces in the region have been taking precautionary measures for days, including having military dependents voluntarily depart regional bases, in anticipation of the strikes and to protect personnel in case of a large-scale response from Tehran. Typically, about 30,000 troops are based in the Middle East, and about 40,000 troops are in the region now, according to a US official. That number surged as high as 43,000 last October amid the ongoing tensions between Israel and Iran as well as continuous attacks on commercial and military ships in the Red Sea by the Iranian-backed Houthis in Yemen. The navy has additional assets that it could send to the Middle East if needed, particularly its aircraft carriers and the warships that sail with them. USS Carl Vinson is in the Arabian Sea - the only aircraft carrier in the region. The carrier USS Nimitz is in the Indo-Pacific and could be directed towards the Middle East if needed, and USS George Washington just left its port in Japan and could also be directed to the region, one official said.
Sky News AU
2 hours ago
- Sky News AU
Albanese yet to secure meeting with Trump ahead of G7
Australia is now demanding a change of approach from Israel's government in the wake of the renewed conflict between Tel Aviv and Tehran. This is ahead of Anthony Albanese's attendance at the G7 in Canada where he is yet to secure a meeting with US President Donald Trump.
Sydney Morning Herald
5 hours ago
- Sydney Morning Herald
Trump applauds Israeli strikes, says Iran now has ‘second chance' to make a deal
Washington: US President Donald Trump says Iran has a second chance to negotiate a nuclear deal and stave off 'even more brutal' attacks being planned by Israel in coming days, as Tehran began its retaliation by firing ballistic missiles at Israeli cities. Trump was conducting a meeting of the National Security Council in the White House Situation Room on Friday, Washington time, following Israel's 'pre-emptive' strikes on Iranian nuclear facilities and top government personnel the night before. In a series of short phone interviews with US media, Trump indicated he was fully aware of Israel's operations in advance, and said Iran must make a deal that forbids it from developing a nuclear weapon 'before there is nothing left'. 'We knew everything,' Trump told Reuters of Israel's attack plans. 'I tried to save Iran humiliation and death. I tried to save them very hard because I would have loved to have seen a deal worked out. They can still work out a deal, however. It's not too late.' Israeli Prime Minister Benjamin Netanyahu also said the US had been informed about the strikes in advance. He and Trump have spoken and were expected to remain in regular contact, according to the White House. Loading On his TruthSocial account, Trump said he gave Iran a 60-day ultimatum two months ago to 'make a deal' that would restrict them from developing a nuclear weapon. 'They should have done it! Today is day 61. I told them what to do, but they just couldn't get there. Now they have, perhaps, a second chance!' he wrote. The president's comments indicated greater support for Israel's actions than a terse initial statement from US Secretary of State Marco Rubio in the immediate aftermath of the strikes on Thursday night, US time – which expressed neither support for nor condemnation of Israel and stressed that the US was not involved.
