Trump holds 10% baseline tariff, reduces auto and metal duties in business deal with UK
US President Donald Trump on Thursday confirmed a trade structure with the United Kingdom that reduces the tariff on auto and metals keeping the baseline as 10% tariff. After the announcement, a phone call came with the UK Prime Minister Kir Stmper. Under the scheme, American tariffs on British cars will fall from 27.5% to 10% for quota of 100,000 vehicles. Tariffs on steel and aluminum will be removed. In turn, the UK will increase the purchase of American agricultural goods, simplifying customs for US products, and cut import taxes on about 2,500 items, including olive oil, alcohol and sports equipment.The Republican President indicated that other countries talking on trade deals with the US may have to face stator import taxes. Referring to the UK’s 10% tariff rate, Trump said, “This is a low number,” and argued that the nations with which the US runs the trade deficit – and claimed that he had misbehaved with the US – would be subject to high tariffs.American stocks meanwhile extended on Thursday as investor optimism increased after the announcement of the trade deal between the United States and the United Kingdom, which could reduce the fears of recession by reducing select tariffs and restrictions.Earlier, during a simultaneous press conference in London and Washington, Kir appeared via a video link of the White House with the stormer Donald Trump, called the US-UK trade agreement “really luxurious and historic days”.
