Renewed Trade Alliances Revitalize Global Markets
(MENAFN) After a period of uncertainty in global financial markets stirred by United States Leader Donald Trump’s implementation of 2.0 tariffs, optimism returned with the announcement of a major trade agreement between the United States and the United Kingdom, along with the initiation of negotiations with China.
Earlier in April, Leader Trump authorized an executive directive that introduced mirrored tariffs on countries around the world.
According to the order, every nation must comply with a basic tariff rate of 10 percent, while certain countries—including Canada, Mexico, China, and member states of the European Union—are subject to steeper duties.
The historic pact between the US and the UK is anticipated to greatly enhance American access to British markets, with the White House highlighting a USD5 billion gain for US farmers, livestock producers, and exporters.
The agreement encompasses over USD700 million in ethanol shipments and USD250 million in various farm goods.
Additionally, it bolsters American competitiveness by eliminating exceptions in the UK's public procurement practices, refining customs systems for American shipments, and solidifying advanced commitments concerning “intellectual property, labor and environmental protections.”
As part of the accord, a mutual tariff rate of 10 percent was instituted on April 2, known as Liberation Day.
Under this framework, the initial 100,000 vehicles imported each year into the US from the UK will incur a 10 percent duty, while any vehicles exceeding this threshold will face a 25 percent levy.
In the aftermath of the UK deal, the United States also struck an agreement with China, resulting in a temporary 90-day suspension of tariffs.
As part of the arrangement, the US will lower its tariffs on Chinese imports from 145 percent to 30 percent, while China is set to cut its own from 125 percent to 10 percent by May 14.
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