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Welcome to The Logoff: The US and UK introduced a framework for a brand new commerce deal at the moment, and whereas Trump administration officers touted the pact as an easy victory for the president’s tariff coverage, the true story is much extra difficult.
What’s the most recent? 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 boundaries 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 all over the world.
What would this commerce deal change? If signed, it could cut back US tariff boundaries on UK vehicles, 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 time period, pushed partially by the UK’s choice to go away the EU.
What’s the large image? Trump has promised tariffs will deliver buying and selling companions to the negotiating desk, resulting in offers that assist the US economic system through higher entry to international markets. And administration officers portrayed at the moment’s deal as proof that technique is working. That’s not totally improper: 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 need to be weighed towards the prices: US customers are nonetheless paying larger taxes on UK items than they have been earlier than Trump’s tariffs — and better taxes on items from all over the place else on the planet as nicely.
And with that, it’s time to log out…
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.