UK-US DEAL PRICE: cars, steel and beef

The United Kingdom and the United States have entered into an agreement on prices on certain goods exchanged between countries.

The tariffs covered by 10% of President Donald Trump on imports from countries around the world still apply to most British goods entering the United States.

But the agreement has reduced or deleted the prices on some of the UK exports, including cars, steel and aluminum.

Here is an overview of what is in the agreement.

Trump said on social networks, this announcement would be a “main trade agreement” – this is not the case.

It does not have the power to sign the type of free trade agreement, India and the United Kingdom have finalized earlier this week-this resides in the congress.

The Congress should approve a trade agreement, which would take more time than the 90 -day break on some Trump’s prices.

This is an agreement that has reversed or reduced some of these prices on specific goods.

It is only the bare bones of a close agreement, there will be months of negotiations and legal documents to follow.

Trump had placed 25% import taxes on cars and car parts in the United States in addition to the existing 2.5%.

This was reduced to 10% for a maximum of 100,000 British cars, which corresponds to the number of cars that the United Kingdom exported last year.

But all the cars exported above this quota will be subject to an import tax of 27.5%.

Cars are the largest export in the United Kingdom to the United States-worth around 9 billion pounds Sterling last year.

Jaguar Land Rover, who exports almost a quarter of his cars to the United States, said the agreement “ensures greater certainty for our sector”.

But the leaders of the automotive industry told the BBC that the quota could effectively put a ceiling on the number they can export competitively.

The United Kingdom currently imposes a 10% levy for imports of American cars, but it is not clear if there is a change to this.

The United States previously requested that the tax be reduced to 2.5%, and Chancellor Rachel Reeves had indicated that it was open to such a reduction.

Trump also announced that Rolls-Royce engines and plane coins could be exported from the United Kingdom to the American price without a price.

A 25% rate on steel and aluminum imports in the United States which entered into force in March was put back.

This is good news for companies such as British Steel, which was under control of the government, because it was struggling to remain operational.

However, the White House said it would impose a quota on the “most favored national rates for British steel and aluminum and certain derivatives in steel and aluminum”.

It is not currently known what share of these products the United Kingdom can export to the United States as part of this quota system without paying more.

It is also difficult to know whether the prices are dismissal will apply to steel derivative products and if only the melted steel paid in the United Kingdom will benefit.

The United Kingdom exports a relatively low amount of steel and aluminum to the United States, around 700 million pounds in total.

However, prices also cover steel and aluminum products, including elements such as gymnasium equipment, furniture and machines.

This is much more, around 2.2 billion pounds sterling, or around 5% of British exports to the United States last year.

Industry Body Steel Uk said there were “a number of hoops to jump before the British steel sector could see the advantages of this agreement”.

He said that companies should know what supply chain conditions should be met, which quotas are and when they take effect.

What will be agreed on pharmaceutical products is still unknown with the United Kingdom saying that the work would continue on this reciprocal rate and the remaining reciprocal rates.

The United States has said that the two countries “will quickly negotiate significantly preferential treatment results on pharmaceutical products”.

Pharmaceutical products are a major export for the United Kingdom with regard to American trade-last year, sales of these products were worth 6.6 billion pounds sterling, making it the second export of the United Kingdom to the United States.

It is also the fourth largest export in America to the United Kingdom, worth 4 billion pounds Sterling last year.

Most countries, including the United States, has imposed a few prices or no prices on finished medication, as part of an agreement to maintain affordable drugs.

The president has not yet announced any commercial restriction on drugs.

There was no change in the digital services tax of 2% of the United Kingdom in this transaction and this seems to be a point of collision.

Companies that manage social media, search engines or online markets must pay for it if they receive more than 500 million pounds in the world’s income and 25 million pounds from British users each year.

But this threshold is easily reached by American technology giants like Meta, Google, Apple.

The United Kingdom has reportedly reported nearly 360 million sterling pounds from American technological companies via the tax during its first year.

The British government said it “agreed to work on a digital trade agreement”.

But the American government said it was “disappointed that the United Kingdom did not want to fully accept the tax.

“He is discriminatory, unjustified and should be deleted quickly,” he said.

USO exports to the United Kingdom had been subject to a tariff of 20% in a quota of 1,000 metric tonnes. The United Kingdom abandoned this price and raised the quota to 13,000 metric tonnes, according to the White House document.

In return, the United Kingdom received a quota without a price for 13,000 metric tonnes of exports, which, according to the Ministers of Commerce, was the “first” British farmers had received this kind of agreement.

Above all, there will be no weakening of British food standards on imports within the framework of this agreement, the statement of the British government said.

Many American farmers use growth hormones as a standard part of their beef production, which was prohibited in the United Kingdom and the European Union in the 1980s.

The United States has already put pressure for a relaxation of the rules for its agricultural products, including the beef of cattle that have received growth hormones.

This is an area where the United Kingdom has chosen alignment with the EU – and the next “Brexit reset” with the EU – in the United States.

The ethanol price from the United Kingdom from the United States has also been rebuilt.

The National Farmers Union has declared the inclusion of a “large volume of bioethanol [a renewable fuel made from crops] In the agreement raises concerns for British arable farmers “.