Yesterday afternoon, Donald Trump finally showed his first trade deal with the United Kingdom at the Oval Office. However, despite all the fanfare, it must be said that the outfit is rather thin again. There are many conversations about the great opportunities that this deal has offered both countries, commerzbank's FX Analyst notes Volkmar Baur.
US-Uk Trade Deal is a warning sign
“The US is probably gaining preference for accessing UK markets for ethanol and agricultural products, repeatedly mentioned by beef. The size of these markets is estimated to be in USD 700 million for ethanol and USD 250 million for agricultural products. Taken together, these values have been less than a billion US dollars -less than 0.5% of the years for years Exports by the US.
“Meanwhile, 10% UK rewards tariffs in US exports remain more than area. However, some exceptions. Tariffs on steel and aluminum will be set to zero. However, these two items have only been accounted for for 2% of UK exports in the US last year. There is no charge.
“The 10% tariff seems to represent a kind of lower limit for the US. Any other country that is currently talking to the US is not reliable that tariffs and China, are likely to be more difficult.
