US-UK commerce deal: What to know

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Welcome to The Logoff: The US and UK introduced a framework for a brand new commerce deal at present, and whereas Trump administration officers touted the pact as a simple victory for the president’s tariff coverage, the true story is much extra sophisticated.

What’s the newest? The US and the UK have a commerce deal — in precept. Nothing has been signed but, however the framework introduced Thursday would decrease some tariff limitations on each international locations. The UK would nonetheless be subjected to President Donald Trump’s 10 p.c international tariff, a baseline fee he imposed on imports from world wide.

What would this commerce deal change? If signed, it will cut back US tariff limitations on UK automobiles, metal, and different gadgets, and the UK would make it simpler for the US to promote beef, ethanol, and agricultural items, amongst different provisions.

Is that this due to the tariffs? Whereas the deal would cut back — however not remove — the tariffs Trump has imposed on the UK, curiosity in a commerce deal has been a subject of dialogue since Trump’s first term , pushed partly by the UK’s resolution to go away the EU.

What’s the large image? Trump has promised tariffs will convey buying and selling companions to the negotiating desk, resulting in offers that assist the US economic system by way of higher entry to overseas markets. And administration officers portrayed at present’s deal as proof that technique is working. That’s not solely incorrect: Whereas the 2 international locations have been already transferring in that route, the tariffs seemingly gave the UK added incentive to barter.

However the advantages US exporters would win underneath this settlement should be weighed in opposition to the prices: US shoppers are nonetheless paying larger taxes on UK items than they have been earlier than Trump’s tariffs — and better taxes on items from in every single place else on the earth as properly.

And with that, it’s time to log out…

Talking of the UK, right here’s a enjoyable (and fairly brief) article about how a British city turned a discarded sofa into a performance art piece . Thanks a lot for studying. Andrew Prokop is holding down the fort Friday, and I’ll see you again right here Monday.