The White House on Thursday announced Trump's first official trade agreement with the United Kingdom, calling it “comprehensive,” but the residue in the world is not celebrated.
The deal does not reduce the overall 10% tariff rate imposed by Trump in April. Nothing really changed – except for some favors carved for expensive cars and plane parts.
According to Throughout the CNN's destruction of the announcement, this deal has been treated as a win of Wall Street and the administration, even if it leaves global supply chain frozen and American businesses stranded.
Trump's team announced the agreement of a “massive and frustrating day.” They held a press event at the Oval Office, where UK Prime Minister Keir Starmer joined the over speakerphone. Keir is not even in Washington.
Trump called him in the last minute, what the British ambassador described as “a common, 11th hour intervention.” The British side said the arrangement was “historical,” even though Keir's tone was super flat could have been automatically.
Although, the UK is here – because, as Keir puts, “The question you should ask is: Is it better than where we were yesterday?”
Trump cuts the car tax but leaves global tariffs unchanged
Under this new agreement, the US will not increase the baseline of 10% tariffs on British imports. That rate will remain exactly where it is on April 2. The only real changes are some custom adjustments for the UK industries.
British expensive cars, including Aston Martin, Rolls-Royce, Jaguar, and Bentley, will pay 27.5%, but now they will only face 10%. These changes do not apply to other consumer goods.
British aerospace companies can now send aircraft parts to the US without paying any tariffs. In return, British Airways is expected to buy 30 Boeing 787 Dreamliners, a detail confirmed by Bloomberg. In steel and aluminum, both sides are consistent to scrap taxes thoroughly, even without quantities or implementation mechanisms are revealed.
In agriculture, both countries provided each other with exports without tariffs on beef and other unnamed farm products. However, no time or export limitations have been disclosed. Officials have clarified from both countries: the details of the so -called “comprehensive” agreement are still agreed.
The chief economist at the RSM, Joe Busuelas, responded to social media, “A trade agreement in which details are still agreed with is not an agreement. It does not provide clarity needed to lift the fog of uncertainty created by a trade war chosen.”
Despite this, US markets rally. Investors are reacting to the tone of the White House, interpreting it as a sign that Trump can slow down the destruction of the economy caused by his tariffs. But there is no sign of real change. The US-Uk trade relations represent only 3% of the total trade in the US. That's a sliver compared to China Trade Freeze, which still hasn't moved an inch because Trump imposed 145% tariffs on most imports.
Global businesses are still locked up while celebrating Trump
On the same day, the UK deal was announced, Justin Wolfers, a professor of economy at the University of Michigan, reminds the public that the rest of the world is still stuck behind Trump's wall.
“Extremely, the most important fact about dealing with today's trade is 10% in full-board tariffs remains,” Justin said online. “Small tweaks here and there with some trading partners will never change.
Before Trump returned to the office, the average effective tariff rate was 2.5%. It's 22%now, the highest over a century. The deal on Thursday does not change. It only puts a few extra Bentleys on American roads and some dreamliners in the air.
Even the White House knows the rest of the global trade grid is worse. The US and China are set to meet this weekend in Geneva, but no optimism. The best Treasury secretary Scott Bessent may say he hopes for “de-escalation.”
So while Trump called it a “massive and exciting day,” global exporters, manufacturers, and crypto-related ecosystems were jammed. This “deal” is a receipt, not a product. And the residue in the world is stuck in waiting for real terms that may not come.
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