Latest news with #UKUS
Times
4 days ago
- Business
- Times
Tariffs blamed as Britain's exports to US drop to lowest since 2022
UK exports to the United States dropped to a three-year low after President Trump introduced sweeping tariffs on the world economy. The latest trade figures showed the value of British goods exported to the world's largest economy declined by 15 per cent, or £700 million, in June to the lowest since February 2022. Across the second quarter, exports to the US contracted by £4.7 billion after Trump announced a wave of tariffs on goods entering the country from April. The figures do not reflect the impact of the UK-US trade deal, which limits most tariffs on British goods exports to 10 per cent and came into force on June 30. The agreement means the UK is facing an average tariff rate of 9 per cent on US trade, compared with about 1 per cent before April's 'liberation day' announcement. Falling exports to the US partially reflected Trump's import taxes on metals and the car sector. The Office for National Statistics said overall exports of machinery, transport equipment and chemicals fell by £200 million in June, indicating falling automotive sales to the US. The UK-US deal, struck in May, reduced tariffs on most British car exports from 27.5 per cent to 10 per cent and eliminated levies on steel and aluminium. William Bain, head of trade policy at the British Chambers of Commerce, said: 'Implementation of the UK's trade deal with the US in full is now needed to improve prospects, particularly for steel and aluminium goods. The agreement should be a platform to discuss further tariff reform with the US, especially in goods sectors where there is little competition on production.' The UK's overall trade deficit — which measures the difference between exports and imports —widened by £1.7 billion in the second quarter to £9.2 billion. This was due to a larger rise in imports than international sales, the ONS said. Good exports to the European Union rose over the second quarter by £1.5 billion, or 3.6 per cent. The trade deficit reflects the gap in goods trade, where the UK has run a persistent deficit in recent decades. In services, where the UK is a major exporter to the rest of the world, the economy continued to record a surplus, which rose by £4.1 billion to £51.9 billion in the quarter. UK exports to the US surged at the start of the year as American businesses attempted to get ahead of impending tariffs. Net trade boosted the economy by 0.34 per cent in the first quarter and had a marginally positive 0.02 percentage-point push on growth in the second quarter. Anna Titareva, a European economist at UBS, said the economy would be weighed down by rising protectionism in the second half of the year. 'We expect net exports to be the main drag on growth in the coming quarters, with the contribution to GDP growth likely remaining negative in 2026 and 2027 as well,' she said. Almost a third of UK businesses that export to the US have said they have been impacted by US tariffs and are preparing to face higher costs, according to the ONS.
The Independent
16-05-2025
- Business
- The Independent
Back to the Golden Age of Flying? Your minute-by-minute guide of Global Airline's maiden flight
James Asquith, chief executive of Global Airlines, has a mission: to 'take passengers back to the Golden Age of Travel, reinvigorating the onboard experience with elevated service' between the UK and US. This is the story of his airline's first transatlantic flight, which took place between Glasgow Airport and New York JFK on Thursday May 15. 8am Global Airlines' launch aircraft, Airbus A380 with the registration 9H-GLOBL, is towed across the airfield at Glasgow from a remote parking stand to gate 34. At the same time, check-in opens for flight HFM380 to New York JFK. HFM stands for Hi Fly Malta, the Maltese subsidiary of a Portuguese operator. Hi Fly is the only non-scheduled organisation with experience of flying the A380. An arch made of red, white and blue balloons has been set up, and cupcakes to celebrate the event are being handed out. 8.37am The aviation and travel vlogger Noel Philips paid £2,999 for a business-class ticket, but on checking in found he had been upgraded to first for the Global Airlines flight from Glasgow airport to New York. Mr Philips, 44, is British but now lives in Magnolia, Texas. 'I came over on Icelander and I literally got in last night and then I'm flying back today,' he told The Independent. 'I'm going back home on the first flight of the Global A380 and it's super-exciting.' 9.42am I am broadcasting live from the airport check-in on Talk, discussing Global Airlines with the presenter Mike Graham. Mr Asquith, the Global Airlines founder, approaches and challenges me for having said, two years ago: 'I wish Global Airlines well, but I fear the operation will simply burn through tens of millions of investors' funds without getting off the ground.' In the impromptu interview that followed, James tells me and the Talk audience: 'I'm feeling great, I think a lot of positivity since, well, you didn't believe this happen. So here we are.' I ask Mr Asquith: 'What happens next after this? You're flying from here to New York. You're flying from Manchester to New York. What happens after that?' The Global Airlines founder responds: 'Who knows what happens tomorrow? Who knows? We'll see. Everybody said we wouldn't get this far, including yourself. So let's see. "I think we've been pretty open and transparent with the journey: the difficulties, the problems, the challenges. We'll see what happens next. Maybe we'll turn the aircraft into a spa next,' he jokes. 'Nothing's guaranteed tomorrow, right. So we'll have to see. I couldn't be happier. If nothing else happens, we've still been here.' 10.25am Unsubstantiated rumours among staff the airport duty-free talked of £40,000 being spent on catering alone; were that true, it would represent about £350 per person. 10.35am While waiting at the gate, my boarding pass for seat 52F is swapped for 73K. "We're seating everyone on the upper deck," the ground staff member explained. Some airlines, including China Southern (previous owner of the Global Airlines aircraft) and British Airways, fit some economy seats on the upper deck of the Airbus A380. With a low load, it makes sense to keep all the economy passengers together to make meal service easier. 10.45am Derek Steell, 60, a retired civil servant, tells me has been given an upgrade from economy to business class. He said: 'I'm 6ft 4in. Usually when we go with British Airways we go in premium economy. I mentioned it to the check-in girl and asked if I could pay for an upgrade. She called somebody over and they authorised it for me and my wife, free of charge.' 10.50am Ten minutes before the scheduled departure time, the crowd of Global Airlines passengers around gate 34 became entangled with the travellers queuing for a Ryanair flight to Alicante, a fair number of whom were women wearing sashes proclaiming 'Steph's Hen 2025'. Boarding begins shortly afterwards. 11.05am I board, shake hands with the captain and walk through the main deck economy cabin. The colour palette suggests to me a Middle East merger between the beige of Emirates and the burgundy of Qatar Airways. Then I climb the stairs to the upper deck. 11.07am Seat 72K is beside the window and there is an empty seat next to it. Waiting is a cream-coloured blanket with a branded Global Airlines wrapper, and a formidable amenity kit. This includes 14 items from socks, eyeshade and ear plugs to Murdock Pulse Point Oil (no I didn't know there was such a thing, either). A classy offering for economy travellers. 11.13am Airbus A380 9H-GLOBL pushes back from gate 24. Captain Carlos Mirpuri, boss of Hi Fly, is at the controls. He says: 'Today marks a very special occasion: the very first transatlantic commercial flight under the Global Airlines brand and we are proud to be operating it on this fantastic Airbus A380. It's a true honour for my colleagues and me to share this milestone with you.' He predicts a flight time of six hours and 20 minutes, which will see us in New York JFK on time an 1pm local time (6pm UK time). 11.34am The plane takes off. Its place at gate 34 will be taken shortly afterwards by the Emirates arrival from Dubai. The flightpath on a beautifully clear day crosses the Clyde, the island of Mull, the Kintyre Peninsula and Malin Head, the northernmost tip of Ireland. 12.10pm Economy passengers are offered a glass of champagne. 12.25pm I venture into the economy bathroom: clean and fresh with bottles of Margaret Dabbs Pure Repairing Hand Cream and Pure Exfoliating Hand Cream. Then I sneak into the business class bathroom, which is larger, just as clean and has two fresh roses in a small vase. 12.30pm I linger in business class and start talking to Derek Steell, the passenger who secured an upgrade at check in. 12.31pm I am politely asked to leave the business cabin so the crew can get on with their service, and make the walk of shame back through the curtain to economy. (Later, I go back in to recharge my laptop and phone.) 12.49pm Hot towels are handed out. 1.15pm The drinks offering arrives, with a range of full bottles of wine: merlot and malbec reds, sauvignon blanc and pinot grigio, plus gigantic bottles of Fanta and 7Up. I ask for a Scottish-made Brewdog IPA. 1.16pm The three-course menu begins with a fresh and tasty caprese salad and ends with a delicious lemon tart. In between, the choice is: Sea bass with fennel Herbed chicken ballantine Spiced white bean and aubergine cassolette. It has been six hours since my breakfast in the Glasgow airport Travelodge, so I ask politely if I might try all of them. The fish was my favourite; the chicken was a tad dry and the vegetarian choice a touch mushy, but overall it was superior to any transatlantic meal I have had in recent memory. 2.05pm Time for tea and coffee. Again, I order one of each from helpful and friendly Maria – a cabin-crew member who works for Hi Fly. 'This is very different to our normal aircraft,' she says. 2.12pm The China Southern seatback videos are not in use. Instead, passengers hook up to the aircraft's internal internet. Connecting to the Global Times WiFi network is easy. While this does not connect to the world wide web, it provides a sky map, showing we are off the southern tip of Greenland. The choice of movies is wide, from Barbie to Conclave. The music selection is more modest, with playlists for pop and rock but no indication of what the might contain. TV shows? Arrow, The Big Bang Theory and The Fresh Prince of Bel-Air. 3.14pm Landfall over North America: crossing the Canadian coast over Labrador. 4pm Something of a party atmosphere is developing, particularly among the younger, male, 'AvGeek' clientele swapping stories as they stand in the aisle. 4.16pm Heavens, another meal. This time I have only one main course, the tasty cod with nicely roasted red peppers. 4.45pm Crossing from the Canadian province of New Brunswick into Maine, US. 5pm With an hour to go, cabin crew hand out invitations to an after-party to be held at the TWA Hotel at JFK airport. This was the iconic terminal for Trans World Airways. The terminal was beautiful but completely unsuited for the jet age, while TWA was later swallowed up by American Airlines. 5.08pm Captain Carlos Mirpuri says descent will begin in 15 minutes, with landing at around 6pm. At New York JFK airport, the temperature is 19C and raining, he reports. We will leave the aircraft on steps, not via an airbridge, he says. 5.24pm The A380 starts to descend. Three minutes later the highly professional cabin crew conduct a brief safety reminder, demonstrating where the emergency exits are once again – for use in the extremely unlikely Event of an evacuation after landing. 5.53pm The giant aircraft breaks through the low cloud hovering over Kennedy airport and touches down gently. Passengers and crew can look forward to a long weekend in New York before the flight back to Glasgow on Monday at 8am local time. 6.04pm (1.04pm in New York) HFM380 arrives at a remote stand, four minutes late after the 3,216-mile flight. Captain Mirpuri signs off saying: 'On time, every time.' Just alongside, a Virgin Atlantic Airbus A350 recently arrived from London Heathrow nudges past – a reminder of the fierce competition between the UK and US. 6.20pm (1.20pm in New York) On the bus to Terminal 4 at JFK airport, Julius Kabengo, an 18-year-old student pilot from London, gave his verdict: 'Good flight, I got here safely. The food was great – that was my great thing. I just really enjoyed it. The staff were lovely.' The one aspect he felt could be improved was boarding at Glasgow. "Getting on the aircraft could be improved, but that's the ground handler. Everything about the aircraft and the organisation: perfect.' 7.23pm (2.23pm in New York) The queue in the immigration hall is almost spilling out of the door, confirming JFK's status as the world's worst airport. Ninety minutes after touchdown, I am about halfway along. Plenty of time, then, to gather my thoughts. This wasn't a return to 'the golden age of travel' – it was far better than that. HFM380 was easily the most comfortable and fun transatlantic trip I have had. I could happily have spent a few more hours being looked after by the friendly and professional crew. One passenger I spoke to before the flight predicted the operation would be 'a little rocky at first,' but it looked impeccable to me. Business class for an economy fare, (except for the flat bed).
Yahoo
09-05-2025
- Business
- Yahoo
Key points of the UK-US trade deal explained
The details of an economic deal between the US and the UK to eliminate a series of tariffs impacting British businesses have been revealed. The agreement is the first of its kind struck by the US since President Donald Trump came to power in January. It offers the UK relief from tariffs on cars and steel, in exchange for giving America's agricultural industry greater access to British markets. Here, the PA news agency outlines some of the key points of the deal. – Steel and aluminium tariffs The US has removed the 25% tariff rate on UK steel and aluminium exports, reducing the trade barrier for these goods to zero. Under the plan, the UK will 'promptly' begin work to meet the United States' requirements for securing supply chains of steel and aluminium products. The agreement will offer a reprieve to Britain's steel industry, which only weeks ago was on the verge of collapse. – Car tariffs American tariffs on British cars fall to 10% for the first 100,000 vehicles exported to the US. The parts needed for those cars will also receive special trade treatment. Mr Trump had set the tariff rate on car exports to the US at 27.5%. British car makers were also understood to have been intensely worried about the impact tariffs on their industry would have had if left unchecked. – Other tariffs A 10% baseline tariff on most goods, described by Mr Trump as a 'reciprocal' tariff, remains in place. Sir Keir Starmer said the US and UK were 'hammering out further details to reduce barriers to trade' in other areas impacted by tariffs. Talks over lowering the reciprocal tariffs are understood to be ongoing, but there is no deadline on how long they may continue. The UK will also get preferential treatment in any further tariffs on national security grounds, Mr Trump announced as part of his drive to protect US business. – Pharmaceuticals Although British pharmaceuticals are not subject to tariffs from the US, Mr Trump has mulled over the idea of imposing trade levies on global imports from the industry. Pending the results of compliance investigations, the countries have pledged to 'negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients'. The UK also promised it would endeavour to 'improve the overall environment' for pharmaceutical companies based there. – Agriculture Both the US and UK's agriculture sectors will gain new access to one another's markets under the deal. UK beef farmers will be allowed access to the US market for the first time, joining a group of select countries such as Australia which have a similar arrangement. British farmers have been given a tariff-free quota for 13,000 metric tonnes. US farmers will, in turn, be granted new access to the UK, but Sir Keir insisted the Government had stuck to its 'red lines' on farming standards. Additionally, the UK will remove tariffs on 1.4 billion litres of ethanol, used to produce beer, which comes from the US. – What non-tariff measures are in the deal? Under the plan, the US and UK committed to working toward economic security by coordinating to 'address non-market policies of third countries'. They also pledged closer cooperation on keeping investments, exports and tech vendors secure by building on already closely aligned trade and investment security measures. The US and UK have agreed to negotiate 'ambitious' provisions for digital trades, a move which could impact services like online banking, financial tech, insurance or other industries that rely heavily on digital infrastructure. Additionally, both sides agreed to better cooperate in tackling duty tax evasions on imports and exports. – What is not in the deal? There is nothing in the deal on US access to the NHS. Nor is there anything on concessions on a 2% tax on US big tech companies. Business Secretary Jonathan Reynolds told reporters: 'Just to be absolutely clear about what is not in this agreement. There is nothing in this agreement in relation to online harms or the Online Safety Act. There's nothing in this agreement in relation to digital services tax. Nothing in the agreement in relation to the NHS.' – The politics The Prime Minister appears to have defied his political opponents who called for him to take a harder stance with the president. 'I know people along the way were urging me to walk away, to descend in a different kind of relationship. We didn't. We did the hard yards. We stayed in the room. I'm really pleased to say to the workforce here and through them to the country, how important I think this deal is,' Sir Keir said following the deal. Lib Dem leader Sir Ed Davey was among those who called for a more muscular approach with Mr Trump. – Terms of the deal Either side may cancel the deal by giving written notice to the other nation, according to the terms of the agreement. Further details about how the deal could be reviewed, changed or terminated will be discussed during negotiations.
The Independent
09-05-2025
- Business
- The Independent
Key points of the UK-US trade deal explained
The details of an economic deal between the US and the UK to eliminate a series of tariffs impacting British businesses have been revealed. The agreement is the first of its kind struck by the US since President Donald Trump came to power in January. It offers the UK relief from tariffs on cars and steel, in exchange for giving America's agricultural industry greater access to British markets. Here, the PA news agency outlines some of the key points of the deal. – Steel and aluminium tariffs The US has removed the 25% tariff rate on UK steel and aluminium exports, reducing the trade barrier for these goods to zero. Under the plan, the UK will 'promptly' begin work to meet the United States' requirements for securing supply chains of steel and aluminium products. The agreement will offer a reprieve to Britain's steel industry, which only weeks ago was on the verge of collapse. – Car tariffs American tariffs on British cars fall to 10% for the first 100,000 vehicles exported to the US. The parts needed for those cars will also receive special trade treatment. Mr Trump had set the tariff rate on car exports to the US at 27.5%. British car makers were also understood to have been intensely worried about the impact tariffs on their industry would have had if left unchecked. – Other tariffs A 10% baseline tariff on most goods, described by Mr Trump as a 'reciprocal' tariff, remains in place. Sir Keir Starmer said the US and UK were 'hammering out further details to reduce barriers to trade' in other areas impacted by tariffs. Talks over lowering the reciprocal tariffs are understood to be ongoing, but there is no deadline on how long they may continue. The UK will also get preferential treatment in any further tariffs on national security grounds, Mr Trump announced as part of his drive to protect US business. – Pharmaceuticals Although British pharmaceuticals are not subject to tariffs from the US, Mr Trump has mulled over the idea of imposing trade levies on global imports from the industry. Pending the results of compliance investigations, the countries have pledged to 'negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients'. The UK also promised it would endeavour to 'improve the overall environment' for pharmaceutical companies based there. – Agriculture Both the US and UK's agriculture sectors will gain new access to one another's markets under the deal. UK beef farmers will be allowed access to the US market for the first time, joining a group of select countries such as Australia which have a similar arrangement. British farmers have been given a tariff-free quota for 13,000 metric tonnes. US farmers will, in turn, be granted new access to the UK, but Sir Keir insisted the Government had stuck to its 'red lines' on farming standards. Additionally, the UK will remove tariffs on 1.4 billion litres of ethanol, used to produce beer, which comes from the US. – What non-tariff measures are in the deal? Under the plan, the US and UK committed to working toward economic security by coordinating to 'address non-market policies of third countries'. They also pledged closer cooperation on keeping investments, exports and tech vendors secure by building on already closely aligned trade and investment security measures. The US and UK have agreed to negotiate 'ambitious' provisions for digital trades, a move which could impact services like online banking, financial tech, insurance or other industries that rely heavily on digital infrastructure. Additionally, both sides agreed to better cooperate in tackling duty tax evasions on imports and exports. – What is not in the deal? There is nothing in the deal on US access to the NHS. Nor is there anything on concessions on a 2% tax on US big tech companies. Business Secretary Jonathan Reynolds told reporters: 'Just to be absolutely clear about what is not in this agreement. There is nothing in this agreement in relation to online harms or the Online Safety Act. There's nothing in this agreement in relation to digital services tax. Nothing in the agreement in relation to the NHS.' – The politics The Prime Minister appears to have defied his political opponents who called for him to take a harder stance with the president. 'I know people along the way were urging me to walk away, to descend in a different kind of relationship. We didn't. We did the hard yards. We stayed in the room. I'm really pleased to say to the workforce here and through them to the country, how important I think this deal is,' Sir Keir said following the deal. Lib Dem leader Sir Ed Davey was among those who called for a more muscular approach with Mr Trump.
The Independent
08-05-2025
- Business
- The Independent
Jobs ‘days' away from being lost without US deal, suggests Reynolds
People were perhaps 'days' away from losing their jobs without the new trade deal between the US and the UK, the Trade Secretary has indicated. Jonathan Reynolds told the BBC's Newsnight programme that 'we were at risk of thousands of people losing their jobs' without an agreement. Sir Keir Starmer had earlier hailed the 'historic' accord reached across the Atlantic, which the Prime Minister said 'delivers for British business and British workers, protecting thousands of British jobs in key sectors including car manufacturing and steel'. As part of the agreement, US import taxes which had threatened to cripple British high-end carmakers were cut from 27.5% to 10%, while the 25% tariff on steel has also been removed entirely. The blanket 10% tariff imposed on imports by US President Donald Trump as part of his sweeping 'liberation day' announcement remains in place, but talks are ongoing in a UK effort to ease it. Mr Reynolds told the BBC that without the 'historic breakthrough, we were at risk of thousands of people losing their jobs'. Asked how quickly that might have happened, he said 'we were very, very close', and pushed further on whether that meant days or weeks, he replied: 'Days.' 'This was very, very serious, it means people would have lost their jobs without this breakthrough and it would have been a real economic hit to the UK,' Mr Reynolds later added. He had earlier said the US was an important market to firms such as Jaguar Land Rover (JLR), Aston Martin and Bentley and that a 25% tariff was a 'very difficult business proposition' in a competitive industry. Sir Keir and Mr Trump confirmed the deal in a conversation that was broadcast live on both sides of the Atlantic on Thursday afternoon. The Prime Minister took the call at a JLR plant in the West Midlands, and said it was 'important' for him to go back to the factory that he visited in the days after the tariffs were first announced. The timing of the announcement came as a surprise, coinciding with VE Day where the Prime Minister was heavily involved in events to mark the 80th anniversary of the end of the Second World War in Europe. The Liberal Democrats have been pushing the Government to offer MPs a vote on the deal, but a Treasury minister appeared to suggest on Thursday evening that would not happen. Asked on the BBC's Question Time programme whether there would be a vote, Exchequer Secretary to the Treasury James Murray said 'it's my understanding it won't but I'm not chief whip'. The deal is the first the US has announced since Mr Trump's tariff regime was introduced last month, and speaking to the Prime Minister from the White House, the US president said the agreement was a 'great deal for both countries'. Previous speculation had suggested the UK would revise the digital services tax as part of a deal, with the levy mainly applying to US tech companies. But Number 10 said on Thursday the tax would remain unchanged, with the two countries agreeing to work on a separate digital trade deal that would reduce paperwork for British firms exporting to the US. The deal also does not include any concessions on the Online Safety Act or the NHS, the Business Secretary said. Asked whether that could be ruled out for the future, Mr Reynolds said: 'Isn't this unfortunately how we do things in the UK? 'We've got the best result of any other country in the world, we're immediately speculating that somehow it's going to be worse in the future. 'We said very clearly the safety of children in the UK is never something we would negotiate with.' He added: 'We've got to stop being so insular in the UK and understand there will be asks from other countries, but we can refuse those and we can negotiate and we can get what we need in the UK to pursue our own interests.' The agreement comes after weeks of speculation about what shape a deal could take. Previous governments have attempted to secure a free trade agreement with the US, but with no success, however the impact of Mr Trump's tariffs made it a high priority for Sir Keir. Chancellor Rachel Reeves said she was 'proud' of the Prime Minister's role in getting the agreement over the line. She wrote in The Times: 'There are those who would have advocated we take a different approach. That we cave into the performative politics, which would have made for a good soundbite, but would have harmed our economy, threatened business, and put working people out of work.' Other measures in the deal include a provision that beef exports will be allowed both ways, with officials insisting there will be no weakening of food standards for meat sent to Britain. Mr Trump posted on Truth Social on Thursday evening to say that the deal is 'GREAT for our FARMERS and RANCHERS'. The UK will also have 'preferential treatment whatever happens in the future' when it comes to pharmaceuticals, as Mr Trump considers import taxes on drugs and medicines. Conservative leader Kemi Badenoch said the UK had been 'shafted' by the agreement, and one of her MPs suggested Mr Trump looks to 'extort' from people. Graham Stuart told Question Time he does not think it is a 'great deal'. He said: 'The truth is that's what he does, that he seeks to shaft people. That's his business career, isn't it?' 'It's what he's done, Donald Trump,' Mr Stuart added. 'He seeks to extort from people, and that's what he's done. He's a classic kind of bully, and he's the worst face of capitalism, and he's taken that into the most powerful country in the world.'
