Global Trade Recovers Amid US Deals with UK, China
(MENAFN) Global financial markets received a boost after a challenging period marked by Leader Donald Trump's implementation of new tariffs, known as Trump’s 2.0 tariffs.
The announcement of a significant trade agreement between the United States and the United Kingdom, along with a decision to initiate discussions with China, contributed to renewed optimism.
Earlier in April, Trump signed a presidential directive introducing reciprocal trade levies on nations across the globe.
This policy mandates a minimum baseline duty of 10 percent on all countries, with higher charges applied to key partners like Canada, Mexico, China, and European Union members.
According to the White House, the historic commercial pact between the US and the UK is expected to greatly enhance American access to the British market.
This agreement opens up a potential USD5 billion economic prospect for US-based farmers, livestock breeders, and manufacturers.
The arrangement encompasses over USD700 million in ethanol shipments and USD250 million in agricultural commodities.
It aims to bolster US global trade strength by eliminating gaps in the UK’s procurement system, simplifying export procedures, and enforcing robust standards for intellectual property rights, labor conditions, and environmental safeguards.
The mutual 10 percent import levy, introduced on Liberation Day (April 2), is currently in force.
As part of the UK agreement, the first 100,000 vehicles brought into the US annually will incur this 10 percent duty, while any cars beyond this threshold will be taxed at 25 percent.
In a further step toward global trade stabilization, the US reached another arrangement with China. This accord pauses tariffs for a 90-day period.
Under the agreement, the US will scale back duties on Chinese imports from 145 percent to 30 percent, while China’s tariffs on US goods will decrease from 125 percent to 10 percent by May 14.
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