Trump is committed to 10% baseline tariff, White House says, despite UK trade deal announcement
Context:
President Donald Trump has confirmed a new trade agreement with the United Kingdom, describing it as a significant achievement for the United States. Despite this deal, Trump remains firm on implementing a 10% baseline tariff on all international trade partners, a stance reiterated by White House Press Secretary Karoline Leavitt. The trade agreement with the UK includes provisions that expedite American goods through UK customs, although the US has also imposed a 10% reciprocal tariff on imports from the UK. Additionally, the US has enacted a 25% global tariff on cars and similar tariffs on steel and aluminum imports, impacting traditional allies. The UK's tariffs on US imports are governed by the World Trade Organization's Most Favored Nation rules, with average rates and specific high tariffs on certain goods.
Dive Deeper:
President Trump announced a new trade deal with the UK, marking it as a pivotal accomplishment for the US, emphasizing that reciprocity and fairness are central tenets of international trade.
Despite the trade agreement, Trump is determined to uphold a 10% baseline tariff on all international trade partners, a policy confirmed by White House Press Secretary Karoline Leavitt.
The US-UK trade deal includes measures to fast-track American goods through UK customs, while further details of the agreement are being finalized.
Since April 5, the US has enforced a 10% reciprocal tariff on UK imports, while a 25% global tariff on cars and similar tariffs on steel, aluminum, and derivatives have also been implemented.
Prior to the new tariffs, UK goods exported to the US faced relatively low tariffs, typically ranging from 0 to 2.5%, with higher rates for specific products.
The UK imposes tariffs on US imports based on the WTO's Most Favored Nation rules, with an average applied tariff rate of 3.8% and certain high tariffs on specific items like seafood and vehicles.
Trump's tariff strategy reflects a broader policy approach to trade negotiations, aiming to leverage tariffs as a tool for negotiating fairer trade terms globally.