Latest news with #UnitedStatesMexicoCanadaAgreement
Yahoo
05-05-2025
- Business
- Yahoo
Britain's tariff burden worse than EU
Britain faces a higher rate of US tariff than the European Union despite Donald Trump's hatred of Brussels, new analysis shows. The UK's effective tariff rate – the average charged on British goods exported to the US – is 11.6pc, compared with 9.5pc for the EU, according to Capital Economics. British imports also face a higher average rate than Mexico, Canada, India, Thailand and Vietnam. The figures reflect the mix of products being exported to the US. Despite the UK facing just the minimum 10pc tariff introduced by Mr Trump, compared with 20pc for the EU, many British exports are subject to extra sector-specific levies. Mr Trump has also introduced 25pc tariffs on steel and cars, which is particularly costly to Britain as cars are our largest single export to the US. UK car manufacturers, including brands such as Aston Martin and Jaguar Land Rover, sold £9bn worth of vehicles to the US last year. By contrast, a larger share of the EU's exports are shielded by a carve-out for pharmaceutical exports. The tariff-free status of drugs means the effective rate paid by EU exporters is well below the 20pc headline level. Vietnam and India similarly benefit from a carve-out for electronic goods, while Mr Trump has issued exemptions for goods arriving from Canada and Mexico that comply with the terms of the pre-existing United States Mexico Canada Agreement (USMCA). Higher charges are imposed on products from British companies despite the fact that Mr Trump is deeply critical of the EU, which he has claimed was 'formed to screw the United States'. By contrast, he has praised Sir Keir Starmer's lobbying to try to secure a trade deal for the UK. After the Prime Minister met with the president in February, Mr Trump said there was a good chance of a deal where 'tariffs wouldn't be necessary' and said Sir Keir had 'earned whatever the hell they pay him over there'. Mr Trump has threatened to make the tariff burden on Britain even higher after suggesting that he could impose a 100pc levy on foreign-made films in a bid to revive Hollywood. Britain's film industry is worth £1.4bn to the economy and employs more than 195,000 people. Hollywood giants including Netflix, Amazon and Warner Bros. have all invested heavily in the UK in recent years. Philippa Childs, head of the Broadcasting, Entertainment, Communications and Theatre Union, said the tariffs 'could deal a knock-out blow to an industry that is only just recovering and will be really worrying news for tens of thousands of skilled freelancers who make films in the UK.' Capital Economics' analysis underlines the importance of striking a trade deal with America to protect Britain's economy from the worst of Mr Trump's tariffs. British officials are racing to negotiate an agreement, with Rachel Reeves, the Chancellor, meeting her counterpart Scott Bessent in Washington at the end of last month. However, reports suggest the Trump administration has made Britain a 'second-order priority', with Asian nations such as South Korea given greater focus. Jonathan Reynolds, the Business Secretary, on Friday said 'all options remain on the table' after the Government closed its consultation on the impact of US tariffs. Mr Reynolds said: 'We are now in a new era for trade and the economy, and that means going further and faster to strengthen the UK's economy. 'While we analyse responses, this Government's priority will be to build on the strength of our relationship with the US and continue talks to find a resolution for UK businesses.' Paul Dans, the architect of Project 2025, the Right-wing policy blueprint that is now considered to be the US president's play-book, said Britain should be able to strike a good deal with America. Mr Dans, who served in the first Trump administration, said: 'Long-term, President Trump ultimately wants to get to a yes on deals and now is the time. Now is the time [for the UK] to make a good deal. 'I think that Britons have suffered a lot of the same fate that we have, and there should be some recognition of the shared experience. The deindustrialisation, the mass immigration, the disorder in society – we feel that on this side of the pond as well.' Project 2025 was a 900-page document drawn up by the Right-wing Heritage Foundation that made radical policy recommendations such as abolishing the department of education. Many of its ideas have been taken on by the president and several of its authors now serve in his administration, including Peter Navarro, Mr Trump's trade advisor. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
05-05-2025
- Business
- Telegraph
Britain's tariff burden worse than EU
Britain faces a higher rate of US tariff than the European Union despite Donald Trump's hatred of Brussels, new analysis shows. The UK's effective tariff rate – the average charged on British goods exported to the US – is 11.6pc, compared with 9.5pc for the EU, according to Capital Economics. British imports also face a higher average rate than Mexico, Canada, India, Thailand and Vietnam. The figures reflect the mix of products being exported to the US. Despite the UK facing just the minimum 10pc tariff introduced by Mr Trump, compared with 20pc for the EU, many British exports are subject to sector-specific levies. Mr Trump has also introduced 25pc tariffs on steel and cars, which is particularly costly to Britain as cars are our largest single export to the US. UK car manufacturers, including brands such as Aston Martin and Jaguar Land Rover, sold £9bn worth of vehicles to the US last year. By contrast, a larger share of the EU's exports are shielded by a carve-out for pharmaceutical exports. The tariff-free status of drugs means the effective rate paid by EU exporters is well below the 20pc headline level. Vietnam and India similarly benefit from a carve-out for electronic goods, while Mr Trump has issued exemptions for goods arriving from Canada and Mexico that comply with the terms of the pre-existing United States Mexico Canada Agreement (USMCA). Higher charges are imposed on products from British companies despite the fact that Mr Trump is deeply critical of the EU, which he has claimed was 'formed to screw the United States'. By contrast, he has praised Sir Keir Starmer's lobbying to try to secure a trade deal for the UK. After the Prime Minister met with the president in February, Mr Trump said there was a good chance of a deal where 'tariffs wouldn't be necessary' and said Sir Keir had 'earned whatever the hell they pay him over there'. Capital Economics' analysis underlines the importance of striking a trade deal with America to protect Britain's economy from the worst of Mr Trump's tariffs. British officials are racing to negotiate an agreement, with Rachel Reeves, the Chancellor, meeting her counterpart Scott Bessent in Washington at the end of last month. However, reports suggest the Trump administration has made Britain a 'second-order priority', with Asian nations such as South Korea given greater focus. Jonathan Reynolds, the Business Secretary, on Friday said 'all options remain on the table' after the Government closed its consultation on the impact of US tariffs. Mr Reynolds said: 'We are now in a new era for trade and the economy, and that means going further and faster to strengthen the UK's economy. 'While we analyse responses, this Government's priority will be to build on the strength of our relationship with the US and continue talks to find a resolution for UK businesses.' Paul Dans, the architect of Project 2025, the Right-wing policy blueprint that is now considered to be the US president's play-book, said Britain should be able to strike a good deal with America. Mr Dans, who served in the first Trump administration, said: 'Long-term, President Trump ultimately wants to get to a yes on deals and now is the time. Now is the time [for the UK] to make a good deal. 'I think that Britons have suffered a lot of the same fate that we have, and there should be some recognition of the shared experience. The deindustrialisation, the mass immigration, the disorder in society – we feel that on this side of the pond as well.' Project 2025 was a 900-page document drawn up by the Right-wing Heritage Foundation that made radical policy recommendations such as abolishing the department of education. Many of its ideas have been taken on by the president and several of its authors now serve in his administration, including Peter Navarro, Mr Trump's trade advisor.
Yahoo
11-04-2025
- Business
- Yahoo
Officials welcome tariff pause
PLATTSBURGH — Area officials are hoping the 90-day pause on tariffs by the Trump administration will clear the way for a more stable economic future. North Country Chamber of Commerce President Garry Douglas said he is welcoming a 90-day pause in the previously announced wide range of 'reciprocal tariffs' around the world with a commitment to negotiations with friendly countries. 'We especially welcome Canadian Prime Minister (Mark) Carney's commitment of Canada to immediate negotiations after the April 28th federal election, aiming for 'a new economic and security relationship' with the U.S.,' Douglas said. 'We have always believed that getting the negotiators around the table sooner rather than later has the best chances of fashioning a way forward. and USMCA (United States Mexico Canada Agreement) is already due for review in 2026 so bring it forward.' A baseline 10% tariff is being continued with many countries during the 90-day pause while recent tariffs on Canada continue for now, particularly on steel, aluminum and now automobiles, with most USMCA compliant goods still eligible for duty free status. Town of Plattsburgh Supervisor Michael Cashman said he hopes to see continued progress on the tariff situation. 'Since the start of these tariff challenges, I have worked diligently with our partners across the border to advocate for common sense and mutual respect. While the 90-day pause is a step in the right direction, more work remains to be done, and those 90 days will pass quickly,' Cashman said. 'We hope this period leads to substantial progress and that we don't see further unnecessary shifts that undermine the relationship. Our community continues to welcome our Canadian friends, and we remain committed to supporting efforts that strengthen our shared economic and social ties and foster a lasting, cooperative future.' In a passionate and lengthy speech on the floor of the Senate, New York Sen. Charles Schumer, denounced what he called Donald Trump's nonsensical tariffs that have put the U.S. economy in danger of a recession, wreaked havoc on the stock market, and risked draining hard-earned retirement savings while the president tweets trading advice to his followers. Schumer said in part, that the president's approach to tariffs has been reckless and troublesome. 'The past eight days have been an absolute embarrassment for President Trump and for everyone who truly cares about this country,' Schumer said. 'During these eight days, the world saw the President of the United States reveal his total lack of understanding of international trade, macro and micro economics, and foreign relations. The world saw the American President issue a tariff ultimatum so ill-conceived and so flawed that it was mocked from here to the Heard and McDonald Islands. This whole episode is so ridiculous that even the writers of Veep and the House of Cards would have shredded their drafts.' Schumer said Trump's handling of the tariff situation has had real effects, lasting effects, on real people. 'Donald Trump's tariff fiasco caused real damage to the confidence other nations have in America. It had real effects on the uncertainty we feel every day that Donald Trump sits in the oval office. It had real effects on people's retirements,' Schumer said.
Axios
05-03-2025
- Automotive
- Axios
Tariff rollercoaster: Trump temporarily pauses Canada, Mexico levies for autos
The Trump administration is easing the newly imposed tariffs on North American allies, with an auto sector carve-out that exempts the industry from import taxes for one month. Why it matters: It offers temporary relief to a business that heavily relies on free trade with Canada and Mexico. But the announcement is also the latest bump in the tariff rollercoaster ride that is hamstringing some business activity and stoking inflation fears. What they're saying: "At the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage," press secretary Karoline Leavitt said at a White House press briefing on Wednesday. Leavitt was referring to the United States Mexico Canada Agreement, the trade deal negotiated in Trump's first term. She said the requests came from top executives at Ford, Stellantis and General Motors. Even with that exclusion, the 25% Canada and Mexico tariffs still cover a huge portion of other imports. The 20% tariff on Chinese imports remains unchanged. The uncertainty about Trump administration policy leaves some companies in a bind. Executives don't know whether or when imports taxes will be called off. What to watch: Speaking to reporters, Leavitt doubled down on tariffs as central to Trump's economic policy, signaling that automakers should make long-term plans to adjust. "The reciprocal tariffs will go into effect on April 2, and he feels strongly about that no matter what — no exception, exemption," Leavitt said. Leavitt said the president told the automakers "to start investing, start moving — shift production here to the United States of America where they will pay no tariff." Between the lines: The White House has tried to distinguish between the various sets of tariff proposals — and how a trade spat might be resolved. A White House official said the Canada, Mexico and China tariffs are about controlling the flow of fentanyl in the U.S., as opposed to the lumber tariff investigation that stems from national security concerns. Yes, but: The temporary tariff relief comes even as Trump says he is dissatisfied with Canada and Mexico's actions on fentanyl. "I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped," Trump posted on Truth Social, describing a conversation with Canadian leader Justin Trudeau. "He said that it's gotten better, but I said, 'That's not good enough.'" The intrigue: The volatility of Trump policy is on full display in the stock market, which has moved in lockstep with tariff news in recent days. Stocks turned positive after reports of the tariff reprieve. Shares in the three automakers rallied sharply. The bottom line: As recent days make clear, it's not just the actual tariffs that pose a risk to the economy, but the uncertainty of their implementation. Commerce Secretary Howard Lutnick said the sectors spared from these tariffs might be roped into a broader tariff announcement in early April. Editor's Note: This story has been updated with additional White House comments.
