US-UK agrees to deal to cut Trump tariffs on cars and metals

The United States has agreed to reduce import taxes on a certain number of British cars and allow some steel and aluminum to be exempted from taxes to the country as part of a new agreement between the United States and the United Kingdom.

Since taking office in January, some new tariffs announced by President Donald Trump provide relief to key industries in the UK.

But that will leave 10% of the responsibility on most merchandise in the UK.

Despite being praised by important leaders of both countries, it does not seem to change the terms of trade between the two countries in meaningful ways, as they stood before the changes Trump proposed this year, analysts said.

There was no formal agreement signed on Thursday, and the government clarified the details.

Sir Kyle Starmer described the deal as a “wonderful platform” when he spoke at a Jaguar Land Rover factory in the West Midlands.

At the White House, Trump called it a "big deal" and opposed criticizing him for exaggerating its importance.

"This is the biggest deal we are going to have to be bigger," he said.

What is this deal?

Both sides said the U.S. agreed to reduce import taxes on cars, and Trump raised 25% last month, 100,000 cars a year.

This will help luxury carmakers like Jaguar Land Rover and Rolls Royce, but may limit growth in the coming years as that roughly corresponds to UK exports last year.

Trump also raised tariffs on steel and aluminum earlier this year have also been cut, the Prime Minister's Office said.

The office also said the two sides had agreed to "reciprocal visits to beef exports" with the quota for UK farmers at 13,000 tons.

The figures have not been confirmed by the White House, although it is expected to expand its beef and ethanol sales, a long-standing demand in the United States.

The U.S. said the deal would create $5 billion in "opportunities" for exports, including $700 million in ethanol and $250 million in other agricultural products.

"The importance of this deal cannot be underestimated," said Brooke Rollins, secretary of agriculture in the United States.

British Steel Director Gareth Stace welcomes the agreement that it will provide "major relief" to the steel sector.

"The British government's calmness and perseverance in negotiating with the United States clearly paid off," he said.

Other business groups expressed more uncertainty.

"Better than yesterday, but definitely not better than five weeks ago," said Duncan Edwards, CEO of British American Business, who represents companies in both countries and supports free trade.

“I want to be excited, but I’m struggling.”

In the Commons, Andrew Griffith, the conservative shadow business secretary, saw the news as a “diet coke agreement, not a real thing.”

Trade Minister Douglas Alexander stressed that the deal was "save work, not work."

Win for our ranchers?

The United States and Britain have been discussing trade deals since Trump's first term. At the time, they were close to signing a small statement.

But the United States has long pushed for changes to its farmers and pharmaceutical problems, which has not been politically unavailable in the UK to Britain.

It is not clear how many of these questions have been raised.

The National Cattlemen Beef Association said the agreement in this agreement provides a "huge victory" for American ranchers, but the American Meat Export Federation tracks trade barriers for American farmers, which is still trying to limit information about the change.

The UK says imported food standards will not be weakened.

Michael Pearce, deputy chief economist at Oxford Economics, said that while Britain appears to have made some promises, “the devil will be in the details”, the announcement did not change its economic forecast.