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

  • On Thursday, U.S. President Donald Trump and UK Prime Minister Keir Starmer unveiled a modest trade deal between their countries, primarily addressing tariffs.
  • The deal followed Trump's April imposition of 10% baseline tariffs on UK imports, aimed at addressing the U.S. Goods trade deficit and after his 'Liberation Day' tariff announcement.
  • The agreement reduced car import tariffs from 27.5% to 10%, eliminated steel and aluminium duties, expanded some agricultural access, but left digital services tax restructuring unresolved.
  • Trump stated that the agreement will enhance trade between the two nations, safeguard existing employment, and generate new job opportunities by expanding access to markets, while Starmer described the occasion as both remarkable and historic.
  • Opposition politicians criticized the deal as limited, noting the remaining tariffs leave the UK in a worse position than months ago, and further negotiations are expected.
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Foreign Policy broke the news in United States on Thursday, May 8, 2025.
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