U.S.-UK Trade Deal, China Tariff Talks Spark Market Optimism
(MENAFN) The announcement of a new U.S.-UK trade agreement and the initiation of tariff suspension talks with China have injected fresh optimism into global markets, easing recent tensions caused by President Donald Trump’s expanded tariff policies.
In early April, Trump signed an executive order enforcing reciprocal tariffs on countries worldwide, establishing a baseline tariff of 10% for all nations. Some countries, including Canada, Mexico, China, and members of the European Union, are subject to even higher rates.
The White House described the historic US-UK trade pact as a major boost for American exporters, opening up a $5 billion market opportunity for US farmers, ranchers, and manufacturers.
The agreement encompasses over $700 million in ethanol exports and $250 million in other agricultural goods. It enhances the US’s competitive edge by tightening rules in the UK’s procurement market, simplifying customs clearance for U.S. shipments, and setting robust standards for intellectual property, labor rights, and environmental safeguards.
Effective April 2—Liberation Day in the UK—a reciprocal 10% tariff rate has been implemented. Under the new terms, the first 100,000 vehicles imported annually into the U.S. from the UK will face this 10% tariff, with any additional vehicles subject to a steeper 25% duty.
Shortly after finalizing the UK deal, the U.S. also secured an agreement with China to pause tariffs for 90 days.
By May 14, US tariffs on Chinese goods will be cut from 145% down to 30%, while China will lower its tariffs from 125% to 10%, signaling a thaw in escalating trade conflicts.
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