The US-UK Trade Agreement Comes Into Effect, Opportunity to Export at 10 Percent TariffThe US-UK Trade Agreement Comes Into Effect, Opportunity to Export at 10 Percent Tariff MHM NEWS

The US-UK Trade Agreement Comes Into Effect, Opportunity to Export at 10 Percent Tariff

Transcript

00:00The US-UK trade agreement comes into effect, opportunity to export at 10% tariff.

00:13Finally, the long-awaited UK and US tariff reduction agreement has come into effect.

00:19With this agreement in force, British car manufacturers now gain special access to the

00:24world's largest consumer market with unique advantages. According to the new agreement,

00:30the UK can export up to 100,000 cars to the US annually at only a 10% tariff, which was previously

00:3727.5%. Additionally, the US has completely withdrawn all import duties imposed on the

00:44UK's aerospace industry. According to a report by the British media outlet BBC, in exchange for this

00:51agreement, the UK has cancelled the existing 19% tariff on US ethanol imports. Alongside,

00:58the import quota for beef has been increased to 13,000 tons. As a result, up to 1.4 billion

01:05litres of US ethanol can now enter Britain duty-free. However, the country's bioethanol industry

01:11organizations are complaining that this decision will harm their domestic production.

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01:21British Prime Minister Keir Starmer has called this agreement, finalized at the G7 summit this month,

01:27historic. He said, this will protect several important industries for our economy.

01:33British Trade and Industry Minister Jonathan Reynolds said,

01:36the tariff reduction will save the automotive and aerospace industries hundreds of millions of

01:41pounds every year. Alongside, thousands of jobs will be saved. However, the UK's steel and

01:48aluminum sectors have remained outside the agreement. A 25% import duty is still in force on these

01:54products. There is concern that this rate could double to 50% if no agreement is reached by July 9th.

02:02US President Donald Trump has already indicated that he has no plans to extend this deadline.

02:07It should be noted that in April of this year, President Trump imposed retaliatory tariffs on

02:12products from almost all countries. However, within a few days, he suspended them for 90 days,

02:19allowing for negotiation. Since then, various countries have been busy negotiating with the US

02:24to reach separate agreements. Meanwhile, despite announcing the cancellation of talks with Canada,

02:30the country's Ministry of Finance has stated that they have withdrawn the digital services tax

02:35to push trade negotiations forward again. Trade between the US and Canada exceeded $900 billion in 2024.

02:43Additionally, Thailand is also preparing for discussions with the US in hopes of a tariff

02:49reduction agreement. The country's Commerce Minister, Pichai Neryipthafan, has stated that

02:54they will negotiate to reduce tariffs on Thai products in the US market from 36% to 10%.