Despite a recent court ruling that overturned many of Donald Trump’s tariffs, British officials are still ahead of schedule in trade talks with the United States and hope to complete a deal covering automobile, metal and aircraft parts within weeks.
A team of British negotiators spoke with their U.S. counterparts in Washington most of last week to discuss how the deal could be implemented, including signing earlier this month, including parliament and Congress can pass it at a speed.
Despite a federal court ruling last week, Downing Street believes the talks are still overturning Trump's 10% tariff on blankets and will eventually be overturned by the president's allies.
But on Thursday night, the Court of Appeal suspended the ruling while examining the argument more carefully - allowing the Trump administration to secure it in place.
"Some countries are treating the court's ruling as a sign that they are right not to negotiate tariffs. We are taking the opposite view and trying to implement the deal as soon as possible," a government source said.
A government spokesman said: “The UK is the first country to reach an agreement with the United States, which will protect UK operations and work in major sectors from cars to steel.
“We are working to ensure that businesses can benefit from the transaction as soon as possible and confirm the next step when appropriate.”
The U.S. president announced the U.S.-U.K. trade deal from the Oval Office earlier this month, calling it “very special to the United Kingdom and especially special to the United States.” Trump surprised Downing Street when he announced the news, notifying Keir Starmer a few hours before the game, and there were many fine details that would still be eliminated.
For example, under the terms of the agreement, British auto companies would be allowed to export 100,000 cars at a 10% tariff rate. However, the deal does not clarify how Americans will view cars that are made in the UK in a considerable proportion of parts made in other countries or treat their own parts assembled.
Although the details were fleshed out, some British companies were forced to lower prices by American customers, while others said they did not export at all.
Earlier this week, federal court ruled that many Trump’s tariffs were illegal and he should seek Congress’ approval first. But while the ruling applies to 10% interest rates that Trump has applied to products around the world, it doesn't apply to his 25% higher for cars, steel and aluminum.
Downing Street decided to continue negotiations with the United States, as if the court ruling did not apply, especially because British officials believe the Supreme Court could be dominated by conservatives.
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On Friday night, Trump unexpectedly announced that he would double foreign tariffs on steel and aluminum imports to 50%. It is unclear how the announcement will affect the trade agreement negotiated earlier this month, with tariffs on UK steel and aluminum reduced to zero.
Last week, a British team landed in Washington, including Varun Chandra, the Prime Minister’s business adviser, Kate Joseph, head of trade relations at the Department of Commerce, and Jonathan Black, deputy national security adviser. Michael Ellam, a senior cabinet office official who played a major role in getting the deal, is now focused on the EU reset deal, a source said.
The team spent much of last week talking with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer and U.S. Agriculture Secretary Brooke Rollins. Rollins has been pushing the UK to open up more American agriculture and food, although Starmer has always insisted that he is unwilling to reduce welfare and safety standards.
Officials hope that cars will be lowered over the next two weeks, while tariffs on steel and aluminum may take longer. They also believe that when determining tariffs on future products, the U.S. promises will bring "very favorable results" to the UK, reducing tariffs on U.S.-made aircraft parts to almost zero.
However, given the continued discussion on exporting about £7 billion worth of medicines to the United States, as Trump has not yet spoken about the tariffs he intends to impose on the industry.
Negotiations with the United States are continuing as officials get closer to a £1.6 billion trade deal with the Gulf nation. The Guardian revealed on Friday that the agreement has no specific provisions on human rights, modern slavery or the environment.