American Commercial Deal-UK: How is Trump’s global tariff talks formed? | International Trade News

US President Donald Trump is expected to announce a framework for a trade agreement between the United States and the United Kingdom on Thursday, according to persons familiar with the plan.

On Wednesday, Trump said he was preparing to announce a “major trade deal with a large and very respectable country.” In a post on the social truth, he promised that he would be “the first of many”.

Investors were waiting for Trump to alleviate his global trade war, amid fears that the lengthy uncertainty may be caused Damage For the largest economies of the world.

The agreement with the United Kingdom would represent Trump’s first business since it imposed a tariff on dozens of countries on April 2And it is a step he called “Editing Day”. Separately, Trump presented a detailed tariff on some American imports, including Cars and steel.

Trump has long been accused of other countries of exploiting the United States in trade, and threw customs tariffs as necessary to return jobs to the United States. He also wants to use definitions to finance tax cuts in the future.

What can be in a trade agreement for the United States of America?

Currently, most imports from the United Kingdom face to the United States A. 10 percent of the tariffs. The United Kingdom, like other countries, was exposed to a 25 percent tariff for steel and aluminum exports to the United States, as well as a 25 percent tariff on cars and auto parts.

The outlines of the proposed deal were clear for some time – significant discounts in US drivers on steel and cars, as the general tariff would remain 10 percent of Trump in place.

The UK is expected to reduce the private digital services tax by 2 percent on American technology companies and its tariffs by 10 percent on car imports and various duties on American agricultural goods.

However, Jonathan Haskel, a former member of the BBC monetary policy committee, told BBC.

Today’s announcement was suggested, it is likely to be a deal and may reach more than just exemptions-exemptions for some of the commercial barriers of Trump last month.

However, on Thursday morning, Trump said the agreement was “a complete and comprehensive agreement that would strengthen the relationship between the United States and the United Kingdom for many years to come.”

While the two governments are likely to submit any agreement announced today as a major victory, it is mainly related to returning to the current situation – removing the newly imposed tariff barriers.

It remains to see the amount of any agreement that will contribute to the economic output of both countries.

What and how much the United States and the United Kingdom traded?

In 2023, the UK had a total trade surplus with the United States. The United Kingdom has reported a surplus of 71.4 billion pounds (95 billion dollars) in goods and services. Most of that head room came from the services, however.

On the side of the goods, the United Kingdom exported 15.3 percent of its goods to the United States in 2023 – which amounts to about 60 billion pounds (80 billion dollars).

Machinery and transportation equipment formed the largest share, worth 27 billion pounds (36 billion dollars), before chemicals worth 14 billion pounds (19 billion dollars).

On the other hand, the United States exported $ 77.2 billion of goods to the United Kingdom in 2023. Ten percent of all goods imported from Great Britain from the United States of that year, and only the second to Germany.

Machinery and transport equipment formed the largest share, with a value of about 20 billion pounds (27 billion dollars), followed by fuel – up to 18.7 billion pounds (25 billion dollars).

On the side of services, the United States exported $ 76 billion of services – things such as advertising and banking services – to the United Kingdom in 2023, and imported $ 170 billion in British services. These are not affected by definitions.

Could the American deal be a plan for other American negotiations?

Trump’s senior negotiating officials have participated in a set of meetings with commercial partners since the President’s “Tahrir Day” tariff was announced on April 2.

Despite Trump’s delay in implementing the “mutual” definitions of most countries 90 days On April 9, they raised them to China to 145 percent. Beijing, in turn, slapped a 125 percent tariff on American goods.

The mutual definitions, which range from 10 percent to 39 percent, are designed to hit countries with a large commercial deficit, or impose a heavy tariff on American goods.

Although Britain was not among the countries that afflicted this mutual tariff, today’s declaration may put a precedent for other bilateral trade deals.

On Tuesday, Trump said he would review possible trade agreements over the next two weeks to determine which of them must be accepted. Last week, he said that “we (already) have possible trade deals” with South Korea and Japan.

After postponing 90 days, severe mutual definitions are scheduled to be imposed on American trading partners in early July, leaving the country representatives to avoid a full commercial dispute with the first economy in the world.

What is the stage of talks that the United States has reached with other countries?

China

according to Data From the USA’s commercial representative office, the total commodity trade between the United States and China reached an estimated $ 582.4 billion in 2024.

The total exports of US goods to China amounted to 143.5 billion dollars, while the total US imports from China reached 438.9 billion dollars. The result is that America’s trade deficit with China was 295.4 billion dollars last year, which is 5.8 percent higher ($ 16.3 billion) for 2023.

US Treasury Secretary Scott Payet will meet with the Chinese Deputy Prime Minister who was Living in Switzerland this weekend to hold talks, which may be the first step in Trade war solution Among the largest economy in the world.

Meetings It will be held in Geneva, and it is expected that the cuts in the wide customs tariffs, duties on specific products, export controls, and Trump’s decision to end the “minimum” exemptions on low -value imports.

The Chinese Ministry of Commerce said last week that it was “evaluation” of Washington. The Geneva meeting will be the first between the two since the announcement of Trump’s commercial definitions in April.

On Tuesday, Bess’s Fox News told that “we (the United States and China) have an unusual common interest. 145 percent and 125 percent are equivalent to the siege. We do not want to separate it. What we want is fair trade.”

Trump accused China of manipulating its currencies to make its exports cheaper. Beijing also criticized the adoption of what he says is practices in the market, such as direct government support for Chinese companies, as well as tax exemptions and preferential financing.

European Union

In 2023, the European Union exported 502 billion euros of goods to the United States and imported 344 billion euros of goods from America, as the surplus of goods trade in favor of the European Union of 157 billion euros ($ 177 billion).

After Trump temporarily dropped the two mutual definitions by 20 percent in the European Union in April, the European Union stopped revenge duties of 21 billion euros (24 billion dollars) of US goods until July 14, including motorcycles in Harley Davidson, chicken and clothes.

Since then, Brussels said it has wanted to increase US goods’ imports by 50 billion euros ($ 57 billion) to address the “problem” in its commercial relationship.

Maros Sefcovic, the best European Union negotiator, recently told the Financial Times that the bloc has “progress” towards concluding a deal.

But Sefcovic suggested that the European Union would not accept an unlimited tariff of 10 percent on its exports as a fair decision of commercial talks. He added that his “ambition” was still forcing a “balanced and fair” deal with the White House.

He also said that he wanted his American counterparts to take into account the American services that are exported to the European Union.

The European Union witnessed a trade deficit of 109 billion euros (123 billion dollars) with the United States in 2023 in terms of services. Brussels exported 319 billion euros (361 billion dollars) of services to the United States that year, with 427 billion euros (483 billion dollars) imported.

He said that taking this into account the general trade deficit of the United States with the European Union will reach about 50 billion euros (57 billion dollars).

Sefcovic added that the new $ 57 billion deficit in the United States can be closed quickly, with deals to buy more American and agricultural products. The talks are currently ongoing.

India

In the first three months of 2025, India has exported $ 27.7 billion of goods (mainly pharmaceutical and engineering products) to the United States, with the import of $ 10.5 billion of goods (mainly aircraft and medical commodities), this means an American trade deficit of $ 17.2 billion.

On Tuesday, Trump revealed that India agreed to drop all definitions on American imports “to nothing.” New Delhi has not yet issued an official statement confirming Trump’s statements.

At an event at the White House alongside Canadian Prime Minister Mark Carney, Trump said: “India has one of the highest definitions in the world. We will not bear it. They agreed to drop it to … nothing. They did not to anyone else except me.”

According to Bloomberg, India was said to have suggested canceling the definitions on the chosen American imports – including steel, auto parts and pharmaceutical preparations – as part of continuous bilateral trade conversations with Washington.

India is currently a tariff on American imports ranging from 5 percent to 30 percent, depending on the product category.

Zero width will be applied on a mutual basis and will be limited to a specific volume of goods.