Latest news with #UKUSdeal
BBC News
29-05-2025
- Business
- BBC News
Simon Jack: Tariff ruling doesn't really change US-UK deal
This latest twist in the Trump trade tariff drama has many people asking what it means for the UK's deal with the answer is actually not as much as you might a start, the tariffs that the US court has ruled illegal do not include those on cars, which make up the bulk of what the UK exports to the US, and steel and aluminium, which are the other UK industries most exports of cars are currently attracting 27.5% tariffs while steel and aluminium are hit with 25% tariffs - the same as every other country. Wednesday's ruling has not changed although the UK has done a deal with the US to reduce car tariffs to 10% and steel and aluminium tariffs to zero, that deal is yet to come into at Jaguar Land Rover told the BBC that these tariffs were costing them "a huge amount of money" and pushed back on the notion floated by the car industry trade body, the SMMT, that they could run down current US inventories before feeling the pain of the government said it was working to implement the deal as quickly as possible and that Trade Secretary Jonathan Reynolds would press the case for speedy implementation when he meets US representatives at a meeting of the Organisation for Economic Co-operation and Development think-tank in Paris next ruling does block Trump's imposition of blanket tariffs of 10% on goods entering the US - including UK products like salmon and whisky - so those British businesses will welcome the court's that relief could be short-lived as the White House has said it intends to appeal the decision, and there are other mechanisms for the President to impose tariffs - through different provisions in trade acts or pushing them through UK announced its trade deal with the US to some fanfare, but there are question marks as to how much better off the UK will be than other countries if it turns out that the President is prevented from imposing swingeing tariffs on others by either the courts or his own the most corrosive effect of all is yet another wild card being thrown into an already unpredictable game of international trade stand-off. It makes it hard for businesses to plan, to invest, with any confidence.
The Independent
09-05-2025
- Business
- The Independent
Fact check: US trade deal and Indian air strikes
This roundup of claims has been compiled by Full Fact, the UK's largest fact-checking charity working to find, expose and counter the harms of bad information. Is the UK-US trade deal 'full and comprehensive'? On Thursday the UK and the United States announced a 'landmark economic deal' between the two countries – the first such agreement the US has reached on trade since President Donald Trump introduced wide-ranging tariffs on US imports. Ahead of the announcement, Mr Trump described the deal as 'full and comprehensive', and later told reporters when questioned on this point that the agreement was 'maxed out'. But in reality, the deal covers only a limited set of measures involving specific sectors. The UK Department for Business and Trade has confirmed to Full Fact that it does not constitute a fully-fledged free trade agreement (such as that agreed between the UK and India earlier this week). The agreement includes a reduction in tariffs on UK car exports to the US, as well as the elimination of US tariffs on UK steel and aluminium exports, while the White House said the deal will 'significantly expand US market access in the UK', in particular for agricultural exports. A UK government press release said that 'work will continue on the remaining sectors – such as pharmaceuticals and remaining reciprocal tariffs', but added that the US had agreed to give the UK 'preferential treatment in any further tariffs imposed'. Neither party has confirmed when the measures agreed will take effect – at a press conference the Prime Minister Sir Keir Starmer said the tariff reductions would 'come into place as soon as possible'. Meanwhile, during Thursday's announcement US commerce secretary Howard Lutnick claimed that the UK government 'nationalised British steel' as part of the deal. Last month, the government passed emergency legislation to enable it to take control of British Steel's Scunthorpe plant to prevent its Chinese owners, Jingye, from allowing it to close. But British Steel was not nationalised, because the government did not take full ownership of the company. The government gained the ability to reinstate sacked staff and enter the plant to prevent the blast furnaces from being turned off, but ownership remains with Jingye for now. Ministers have indicated, however, that full nationalisation remains a possibility, especially if no other buyer is found. Finally, Donald Trump described the UK as the US's 'oldest ally, or just about'. That's highly debatable, as Mr Trump himself seemed to acknowledge when he then added that a 'couple of people claim that too, but let's put it right at the top'. Many, including Mr Trump himself previously, have argued that it is actually France which should be considered the US's oldest ally. Welcoming French president Emmanuel Macron to the White House in February, Mr Trump said: 'France is America's oldest ally. Our cherished partnership has been a force for freedom, prosperity and peace from the very beginning.' This is a reference to the French monarchy recognising the United States as an independent country in 1778, two years after the signing of the Declaration of Independence. France also provided critical support for the American colonies against the British in the American War of Independence. Others may point to Morocco, which was the first country to publicly recognise the United States of America with a decree in 1777. The UK officially recognised the US by signing the Treaty of Paris in 1783, after the end of the War of Independence – though the countries fought again in the War of 1812. Online misinformation about Indian air strikes Misleading social media posts have been shared widely online in the aftermath of Indian air strikes on Pakistan and Pakistan-administered Kashmir, amid escalating tensions in the region. A picture of a burning plane was shared on Facebook with a caption suggesting it showed a plane shot down by Pakistan. The country has said that it shot down five Indian fighter jets, including French-made Rafales, and a drone – a claim India has not confirmed. But a reverse image search reveals the picture shared in the post was used in a report by an Indian news site about a crash in September 2024, where an Indian Air Force MiG-29 fighter jet crashed in Barmer, Rajasthan, in the north west of the country. A video featuring a series of explosions at night was shared with captions saying: '#BREAKING: Pakistan Army confirms attack by India. India has launched an attack on Pakistan.' But this clip has been online since at least October 13 2023. It was described then as depicting Israeli air strikes on Gaza, although Full Fact has not been able to independently verify what the footage shows. And striking images of buildings illuminated by fire were also shared on Facebook with a caption suggesting that they showed India carrying out strikes in Sialkot, in Pakistan. India has said it targeted two camps in Sialkot, but both images are several years old, and featured in news reports about Israeli air strikes in Gaza in May and June of 2021. Misleading information can spread quickly during breaking news events, especially during periods of crisis and conflict. Before sharing content that you see online, it is important to consider whether it comes from a trustworthy and verifiable source. We have written guides explaining key tools to help you spot misleading images and videos.
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The Independent
09-05-2025
- Business
- The Independent
US-UK trade deal: Ask chief political commentator John Rentoul anything after historic Trump agreement
Welcome to an exclusive Ask Me Anything session with me, John Rentoul, The Independent 's chief political commentator. Keep scrolling for more. If you want to jump straight to the Q&A, click here. In one of the most dramatic weeks for British trade policy in decades, Prime Minister Sir Keir Starmer has secured not one, but two landmark trade agreements — first with India, and now with the United States. The newly announced US-UK Economic Prosperity Deal (EPD), unveiled on Thursday, marks a significant step in re-cementing Britain's trading ties with Washington. Billed as a "first-of-its-kind" agreement, the deal pledges to lower tariffs, ease barriers for businesses on both sides of the Atlantic, and deepen collaboration in key sectors from digital trade to pharmaceuticals, steel, and green technology. Crucially, it promises to safeguard UK businesses from the sharpest edges of Donald Trump's protectionist trade policies, while opening up billions in new commercial opportunities. It's a striking diplomatic win for Starmer, who just days ago concluded the long-stalled trade deal with India, an achievement that eluded both Boris Johnson and Rishi Sunak. The two deals, clinched within 48 hours, have reshaped Britain's post-Brexit trade landscape and breathed new life into Labour's economic strategy. Yet questions remain: How deep does the US-UK deal really go? What will it mean for British consumers and businesses? Is it enough to offset the frictions of post-Brexit trade with Europe? And how did Starmer navigate the famously unpredictable Donald Trump to secure it? Join me live at 3pm BST on Friday, 9 May, as I answer your questions on all aspects of the new trade deal, Starmer's diplomacy, and what these agreements mean for Britain's economic future.
BBC News
08-05-2025
- Business
- BBC News
US agreement leaves UK open to do a much more significant EU deal
The key diplomatic win here is that it leaves the UK open to do a full EU deal on for example food this US deal is relatively small, although important to very specific rolls back on some of the trade damage done by Trumps original announcement, in particular to the car industry. An insider told me the move from 27.5% to 10% would effectively save UK car exporters over £1bn from what was an "existential threat" to the no longer existential, this remains painful. It is unclear how the quota will function, how it will account for foreign parts, for example Chinese batteries, and is limited to 100,000 cars. JLR's much heralded new Jaguar was for example launched in the US with the hope of growing this number. The flip side of this is agricultural access for the US, for example for beef, also subject to a quota. Other things were notable by their absence. There was no move on the digital service tax, or on tariffs for US biggest single decision however is the fact that the 10% so-called reciprocal tariff stays, even though the UK buys more from the US than the other way around. This confirms that the tariff is not negotiable for any body, and could have wider Secretary Howard Lutnick's White House slideshow appeared to point to a rather one sided "deal" where the UK had offered the US "unprecedented access" in order to save its car industry. The US had trebled tariffs on the UK from 3.4% to 10%, and the UK has cut its tariffs by two-thirds from 5.1% to 1.8%. It does not seem very "reciprocal".There is an important "but" here. The UK and US views these numbers through very different lenses. From the US perspective the trebling of tariffs is a tax on foreigners that "wins" revenue for US Treasury. From the UK perspective the tariff is a tax on domestic consumers that increases inflation, so a lower value is in and of itself at the Bank of England the lack of retaliation and acceptance of diverted goods from Asia are among the reasons that inflation is now rising more gently, which has enabled today's interest rate cut with more to Governor Andrew Bailey told me that he hoped the deal would mark the first of many which would calm global trade real win here could be that this agreement on tariffs will keep the US sweet whilst leaving the door open to a substantive deal with the European Union. This could be much more economically significant for the UK - the UK's largest trading partner. By maintaining UK food standards and not for example accepting hormone treated beef or chlorinated chicken, a "full fat" food and farm export deal with the EU, similar to Switzerland's, is now clearly on the cards in the next fortnight. This could slash post Brexit red tape for key exporters both you have an overall picture of a growing economy, with good trade relations with the US, EU, India and soon the Gulf too, with rates being cut. The Government will try to project the UK as an oasis of trade and political stability in a tumultuous world, after years of turmoil. It is a world away from the recessionary negativity at the turn of the year, and it might just work.
Auto Express
08-05-2025
- Automotive
- Auto Express
Starmer and Trump strike trade deal to save UK car industry, but there's a catch…
A trade agreement between the UK and US has been struck, reducing tariffs for exports of British-made cars to America, but there's a catch – there's a limit to the number of cars that can be exported before the original tariff is reimposed, stifling the growth of UK carmakers. In February, President Donald Trump announced sweeping 25 per cent tariffs on foreign-made cars being imported into the US. This caused ructions throughout the UK car industry as America is one of its largest export markets and both Jaguar-Land Rover (JLR) and Aston Martin paused US exports in response. Advertisement - Article continues below Now, a deal has been struck between the two nations to reduce tariffs to 10 per cent for the first 100,000 cars exported from the UK to the US each year. Anything over that number will probably incur the 25 per cent tariff originally imposed by the President. Nevertheless, Trump described the deal as part of 'an incredible day for America', going on to say that it was 'so good for both countries'. It's worth noting that a 10 per cent tariff is still much heftier than the duties in place during the previous Biden administration. When questioned on this during a speech at JLR's plant in the West Midlands, Keir Starmer told journalists: 'The question we should be asking is, 'is it better than where we were yesterday?'' Furthermore, the 100,000-car limit does place a cap on growth somewhat. The UK exported as-near-as-makes-no-difference 100,000 cars to the US last year, meaning that firms won't have any headroom as it stands to increase sales without heftier tariffs being incurred. In a statement, the chief executive of the UK's Society of Motor Manufacturers and Traders, Mike Hawes, said the deal provides some 'much-needed relief'. Hawes also remarked that No10 has 'recognised the importance of the automotive industry to UK exports and the economy, and has worked tirelessly with US counterparts to strike an agreement'. 'We hope that [this] will lead to broader and deeper cooperation that reduces barriers to trade still further, charting a path to economic growth for both nations,' he concluded. Don't miss our next car video, subscribe to our YouTube channel today
