Trump and Starmer close Handelsdeal, import duties relaxed

• 

  Fleur Launspach

  Correspondent United Kingdom and Ireland

The American and British government are closing a trading deal, was announced at a press conference in Washington. It is the first trade agreement since President Donald Trump announced large -scale import duties in April. America is the largest economy in the world, the British economy is in sixth place.

According to Trump, it is a “full and all -embracing trading deal,” while the British government expresses itself a bit more cautiously. Both governments use the term “historical” – but in the core, the Handelsdeal seems primarily aimed at relaxing Trumps import duties.

The United Kingdom was given a 10 percent basic rate on all products in April, and also fell below 25 percent levies on steel, aluminum and cars. The 10 percent remains in principle, but exemptions have been given for specific markets. For example, the import duties on steel and aluminum have been canceled and the VK can export 100,000 cars to America at a lower levy. Exemptions are also given for Rolls-Royce engines and aircraft parts.

On the other hand, the British open their market to American products such as beef, other agricultural products, ethanol and machines. In addition, there is a hint of further conversations between the two countries and they say that “more details will follow”.

After the EU, the United States are the second largest export market for the United Kingdom. Last year the British exported $ 10 billion in cars to the US and for about $ 9 billion in pharmaceutical products. An advantage for the UK is that according to Trump, unlike the EU, there is no real trade deficit. The trade balance – which Trump calls “unfair” in many countries – is reasonably in balance between the UK and the US.

At the diplomatic level, the agreement on both sides of the Atlantic is celebrated as a success. For British Prime Minister Keir Starmer, it proves that his diplomatic approach to Paai has paid off trumps.

The British did not hit back with taxes, starmer maintained warm ties with Trump and always emphasized the historical “special friendship” that has been around between the two countries since the Second World War. For the British Prime Minister, this is also proof that after the Brexit and apart from the European Trade Block, the UK can indeed close independently trading deals.

For Trump, the deal is an asset to point out that his import duties have an effect. The US president has repeatedly emphasized that more than eighty countries are now standing in line thanks to his taxes to close trade agreements. According to Trump, that shows that his trade war will ultimately be good for the US economy.

Positive economic news is very welcome in the struggling British economy. But how much difference this trade deal will actually make can still be seen. After the press conference, the British Prime Minister was asked whether the country is better off than before Trump became president. To which the British Prime Minister replied: “The question you have to ask is, are we better off than yesterday?”

Critics describe the deal primarily as a photo moment with limited economic value: the agreement is only about goods (and not about services) and mainly focuses on visible products such as cars and steel, on which Trump imposed considerable levies.

In the meantime, the British government is also working on trade agreements with the European Union. These conversations with the European Union may be more important economically for the British: the EU remains the larger market for the UK.

Brussels and London are about to hold a post-Brexit ‘Reset-Top’ in London on 19 May, with the British Labor government emphatically approaching. Also on the European side there is a willingness to do so, partly due to the need for military cooperation.

The British government emphasizes that the country does not have to choose, but can maintain good trade relationships with both economic blocks that do not have to bite each other.