Cars, steel, planes: What’s in the US-UK economic deal?
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The United States and Britain announced a deal to lower tariffs on some goods on May 8.
PHOTO: REUTERS
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LONDON/WASHINGTON - The United States and Britain announced a deal to lower tariffs on some goods on May 8, with US levies on cars and steel being cut and both sides gaining better access to agriculture markets.
Below are some of the main points from the agreement:
Basic 10% tariff
US Commerce Secretary Howard Lutnick said the 10 per cent basic tariff rate would remain in place.
Car tariffs
The British government said the deal will reduce tariffs on some British-made cars from 27.5 per cent to 10 per cent.
British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at the lower tariff rate, almost the total Britain exported in 2024, the British government said.
Steel tariffs
The British government also said 25 per cent tariffs currently imposed on British steel exports to the US will be reduced to zero.
Planes
Mr Lutnick said British companies would now be able to export plane parts to the United States tariff-free.
In return, a British airline is expected to buy US$10 billion (S$12.9 billion) of Boeing aeroplanes.
Agricultural tariffs
The British government said there would be "reciprocal market access on beef" with British farmers given a tariff free quota for 13,000 metric tonnes.
Britain will also remove tariffs on US ethanol – which is used to produce beer.
Movies
US President Donald Trump said talks with Britain on his plan to impose tariffs on film imports would happen separately from the agreed deal.
"James Bond has nothing to worry about," he said.
Further deals
The two sides will continue trying to agree a broader deal that will cover pharmaceuticals and reducing the remaining reciprocal tariffs.
The US has also agreed that the UK will get preferential treatment in any further tariffs imposed as part of Section 232 investigations which give the U.S. president powers to restrict imports if they are found to threaten national security.
The UK Digital Services Tax remains unchanged. REUTERS
