The Trump administration has reached what it calls a “revolutionary trade agreement»Thursday with the United Kingdom. I am very happy for the United Kingdom, from which my background-Grand paternal-father Moses Noah emigrated in July 1863 and my maternal grandmother, Jean Robertson, in October 1922. My wife and I recently liked to watch the second season of Wolf room On PBS. Britannia rule and all that.
But at the risk of spoiling the party, the United Kingdom is not a country with which the United States has many commercial problems. A commercial problem, as defined (somewhat simplistic) of the Trump administration, occurs when another country sells us more things than we sell to them. Our biggest commercial problem, everyone agrees, is China. China sells us $ 295 billion in additional goods that we sell to them. Gifting a minimum rate of 145% on all Chinese products is not an intelligent solution to the problem, but it East A problem all the same.
It is therefore good news that the secretary of the Treasury Scott Bessent launch business discussions With China this weekend – Trill that Trump previously claimed had already taken place, but no. A remarkable development since Trump returned to the White House is that the declarations of the usually monthly Chinese government are now more credible than the statements of the President of the United States. But put it aside. If you want to call something a “breakthrough”, sitting with Chinese trade officials is a much more important affair than sitting with a bunch of people who speak like Anthony Hopkins.
We do not have much commercial problem with the United Kingdom because We sell an additional $ 12 billion to them that they sell us. This is our fifth largest commercial surplus, according to The Motley Fool, after the Netherlands ($ 56 billion), Hong Kong ($ 22 billion), the United Arab Emirates ($ 19 billion) and Australia ($ 18 billion). Most of the other places with which we have commercial imbalances are underdeveloped countries.
We do not have much commercial problem with the United Kingdom, but the United Kingdom has a big problem with Webecause OUR The surplus of trade is their trade deficit. In addition, we are, among nations, the United Kingdom biggest trading partnerWhile the United Kingdom is only our Seventh trading partner. We are just not that.
Brexit is aggravating the commercial difficulties of the United Kingdom, the spectacularly self-destructive decision of the United Kingdom to leave the European Union, which took effect in 2020. The United Kingdom has succeeded before this break to negotiate a free trade agreement with the EU, eliminating the risk of prices imposed on its imports or exports to the EU. But even, thus, exports from the United Kingdom to the EU, which (as a block rather than a nation) is the largest trading partner in the United Kingdom, are down by Up to 30% Compared to where they would be if Brexit has never occurred. This left the United Kingdom a little frantic to reduce commercial offers elsewhere, and especially with the United States
Trump's trade agreement with the United Kingdom, which only exists in a raw outline, makes the life of Prime Minister Keir Starmer makes life easier. Starmer’s diplomatic strategy has been to flatter Trump every round – which cannot have been easy for him – and bring King Charles to invite Trump to visit him to Dumfries House or Balmoral Castle, both located near Trump golf courses in Scotland. This charming offensive has now been rewarded with a reduction in prices, From 27.5 to 10%On Jaguars, Land Rovers and other British cars exported to America, and the complete elimination of prices on the steel industry of the United Kingdom. In addition, the United Kingdom will be authorized to export, without prices, up to 13,000 metric tonnes of beef. All British exports, however, will always be subject to the same 10% price at 10% that Trump will impose on all countries.
In return, the United States receives… not much. A few Reduction of agricultural pricesIncluding prices on American beef, although the United Kingdom will see it apparently not importing livestock beef which has been fed by growth hormones (Trump's White House Referring to that as “norms not based on science that affect American exports”). There is no agreement on pharmaceutical products, on which Trump threatened to impose a rate of 25%. There, the United States has a Trade deficit $ 1.4 billion with the United Kingdom, but essential consideration should be easy to obtain foreign manufacturing drugs for American patients and American manufacturing drugs for British products, because human health is greater than the political increase in trade.
The United States was born of a commercial dispute with Great Britain, and at that time, the game was really rigged in favor of the mother mother to the detriment of the colonies. Recently, however, the United States had the upper hand-so much so that Trump's idea to take heavy prices in the United Kingdom was a bit cruel. The advantage of Trump’s announcement Thursday is mainly that the United States can feel a little less like the neighborhood intimidator. It's worth something. But there is a reason why most champagne caps cross the Atlantic This blessed intrigue, this land, this kingdom, this England. In the United Kingdom, there are reasons to celebrate. In the United States, it's just another day.
