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Welcome to The Logoff: The US and UK introduced a framework for a brand new commerce deal at this time, and whereas Trump administration officers touted the pact as an easy victory for the president’s tariff coverage, the actual story is way 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 could cut back US tariff limitations on UK automobiles, metal, and different objects, 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 eradicate — the tariffs Trump has imposed on the UK, curiosity in a commerce deal has been a subject of debate since Trump’s first time period, pushed partly by the UK’s determination 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 financial system through higher entry to international markets. And administration officers portrayed at this time’s deal as proof that technique is working. That’s not fully mistaken: Whereas the 2 international locations have been already shifting in that path, the tariffs doubtless gave the UK added incentive to barter.
However the advantages US exporters would win below this settlement should be weighed in opposition to 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 this planet as nicely.
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.
