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Welcome to The Logoff: The US and UK introduced a framework for a brand new commerce deal in the present day, and whereas Trump administration officers touted the pact as a simple victory for the president’s tariff coverage, the true story is way extra difficult.
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 obstacles on each nations. The UK would nonetheless be subjected to President Donald Trump’s 10 p.c world tariff, a baseline charge he imposed on imports from all over the world.
What would this commerce deal change? If signed, it will scale back US tariff obstacles 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 scale back — however not eradicate — the tariffs Trump has imposed on the UK, curiosity in a commerce deal has been a subject of dialogue since Trump’s first time period, pushed partially by the UK’s choice to depart the EU.
What’s the massive image? Trump has promised tariffs will carry buying and selling companions to the negotiating desk, resulting in offers that assist the US financial system by way of higher entry to overseas markets. And administration officers portrayed in the present day’s deal as proof that technique is working. That’s not totally incorrect: Whereas the 2 nations 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 need to be weighed in opposition to the prices: US shoppers are nonetheless paying greater 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 effectively.
And with that, it’s time to sign off…
Talking of the UK, right here’s a enjoyable (and fairly quick) article about how a British city turned a discarded couch right into a efficiency artwork piece. Thanks a lot for studying. Andrew Prokop is holding down the fort Friday, and I’ll see you again right here Monday.
