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Trump, Starmer hail limited US-UK trade deal, but 10% duties remain

  • On May 8, 2025, the United States and the United Kingdom reached a limited agreement on trade, announced jointly by the American president and the British prime minister.
  • The deal follows Trump's imposition of 25% tariffs on British steel and autos and aims to reduce those levies while maintaining a 10% baseline tariff on most imports.
  • Key provisions include zero tariffs on British steel, ethanol, and plane parts, a 10% tariff on the first 100,000 British vehicles, and improved U.S. Market access to British beef and farm goods.
  • Trump said the 10% tariff would remain the minimum floor, and U.K. Prime Minister Starmer called the agreement "a vital step" amid global instability, while economists said the immediate benefit may be limited.
  • The deal signals momentum for further U.S. Trade agreements but leaves some tariffs intact, suggesting only modest economic impact with potential for future negotiations.
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Foreign Policy broke the news in United States on Thursday, May 8, 2025.
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