‘Historic’: Trump inks first post tariff trade deal

The US and UK said it was a “historic deal” that would lower red tape between the two allies.

But if nations, like Australia, were hoping trade deals with the White House would mean no more tariffs they will be disappointed. The US has said it will maintain the so-called “baseline” 10 per cent tariffs with the United Kingdom.

However, the UK will get a reduction on the current 25 per cent auto tariffs with those reduced to 10 per cent for up to 100,000 vehicles annually. There will also be zero tariffs on British steel and aluminium to the US which had been at 25 per cent. Airline parts produced in Britain and sent to American will also be tariff free. The UK’s Rolls-Royce is one of the world’s biggest aircraft engine makers.

The deal is however not yet signed off and parts of the agreement still have to be worked on.

On social media, Mr Trump said the agreement was part of a “very big and exciting day” for US-UK relations.

Donald Trump sad the agreement with Britain was “full and comprehensive” and would “cement the relationship between the United States and the United Kingdom for many years to come,”

“Because of our long time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement.

“Many other deals, which are in serious stages of negotiation, to follow!”

The UK withdrew from the European Union in January 2020 meaning it can now ink trade deals without referring to Brussels. But the EU remains a bigger trading partner for Britain than the US.

Like Australia, the UK has a trade deficit with the US meaning it buys more from American than it sells to it. Nonetheless, Mr Trump still whacked Britain with so-called “baseline” 10 per cent tariff. It also was hit with the universal 25 per cent tariff on vehicles and steel and aluminium.

Cars are the UK’s numbers one expert to the US, from manufacturers like Jaguar, Land Rover, Rolls Royce and BMW’s Mini line.

Pharmaceuticals, from big manufacturers including AstraZeneca and GlaxoSmithKline are its next biggest export.