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Trump Hails UK Trade Framework as First of Many Tariff Deals · Bloomberg Intelligence

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  Speaker 2: Sent Donald Tump in the Oval Office talking about the
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  Speaker 2: trade agreement with the UK. It's a framework and I
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  Speaker 2: guess more negotiations over the coming weeks to get an agreement,
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  Speaker 2: but wide ranging discussion there on global trade, particularly with
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  Speaker 2: United Kingdom and the Kerrent joins us. He's a global
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  Speaker 2: economy reporter for Bloomberg News. He's based down in Washington, DC. Hey,
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  Speaker 2: and you listen to the president here, it looks like
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  Speaker 2: there is a framework for an agreement between the United
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  Speaker 2: States and in the UK. Put this into context. What
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  Speaker 2: did you take away?
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  Speaker 3: Well, there are certainly some micro details in it. I mean,
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  Speaker 3: for example, on the US side, tariff on steels in
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  Speaker 3: the UK going to zero. You have engines and plane
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  Speaker 3: parts from Boeing also coming in power free. That's on
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  Speaker 3: one side that's clearly a potential boost for those businesses
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  Speaker 3: on that side, and then on the UK side, Brittiness
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  Speaker 3: Committee to buying ten billion dollars worth of Boeing planes,
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  Speaker 3: and there's going to be a coat for allowing US
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  Speaker 3: beef thirteen thousand metro tons of the US beef into
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  Speaker 3: the UK. Now as a rinkline that one in terms
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  Speaker 3: of food standards is not going to change. That's probably
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  Speaker 3: worth keeping any on. So you know, there's clearly some
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  Speaker 3: winds there for steel and for autos on the UK side,
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  Speaker 3: winds for maybe farmers, and a lift for Boeing on
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  Speaker 3: this side and the US side, But you know, you
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  Speaker 3: know large it's a long way from a true in
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  Speaker 3: depth trade agreement. There is no change to the ten
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  Speaker 3: percent minimum baseline tariff that will go on UK goods
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  Speaker 3: coming to the US, and that's noteworthy because if the
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  Speaker 3: US isn't willing to drip that for both an economic
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  Speaker 3: and a security ally like the UK, then you question
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  Speaker 3: whether that would change for anybody. So it's a it's
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  Speaker 3: interesting that they got it done. Parts of its significant
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  Speaker 3: for the industries and industries involved, but it's not a
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  Speaker 3: sweeping Perhaps some of the headlines might suggest.
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  Speaker 4: Talk to us about the the ag part, so the ethanol,
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  Speaker 4: the corn, that part of it. I mean, the headline
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  Speaker 4: number sounds really good and trade wars hurt farmers. We
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  Speaker 4: saw that in the first administration for President Trump. What
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  Speaker 4: do you think the takeaway from that will be?
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  Speaker 3: Well, we heard the culture is actually brook Rowlands hailing.
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  Speaker 3: It is a big deal for US farmers in particular.
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  Speaker 3: And they were chouting for example, and the UK bussor
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  Speaker 3: mandleson maket the same point they were chouting disagreement on
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  Speaker 3: the beef going in tower free quota of thirteen thousand medicines.
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  Speaker 3: That would be interesting that those open up potential new
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  Speaker 3: market access for US farmers, no question. But within that
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  Speaker 3: though I mentioned earlier, the food standard part of it
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  Speaker 3: isn't changing, so we'll have to see how that impacts
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  Speaker 3: in practice, how it impacts in practice terms of how
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  Speaker 3: those imports or exports do workouts the UK in terms
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  Speaker 3: of walts it out in and what the demand is.
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  Speaker 3: But you know, on paper it's it's a concession on
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  Speaker 3: the UK side for US farmers.
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  Speaker 2: And thank you so much for your reporting there in
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  Speaker 2: the current global economy reporter for Bloomberg News. He's based
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  Speaker 2: down there in Washington and DC. Let's go across to
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  Speaker 2: London right now, get that point of you. Joe Mays
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  Speaker 2: Joints and Serry covers the economy, the UK economies based
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  Speaker 2: in our London studios over there. Hey, Joe, you listened
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  Speaker 2: to the President speak and the Prime Minister via phone.
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  Speaker 2: What's the takeaway over there in London do you think?
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  Speaker 3: Well?
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  Speaker 5: The UK Government is trying to sell this as a
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  Speaker 5: major political win for them. They are saying that the
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  Speaker 5: particularly the reduction in tariff's on cars on of that
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  Speaker 5: one hundred thousand quota down to ten percent. They say
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  Speaker 5: that's a big win. And also steel tariffs going from
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  Speaker 5: twenty five percent to zero and the same aluminium is
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  Speaker 5: also a good news story for steelmakers in the UK.
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  Speaker 5: But nevertheless, there is criticism of this still already from
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  Speaker 5: opposition parties, pointing out that the UK is still in
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  Speaker 5: a worse position than before Donald Trump became presidents, still
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  Speaker 5: with that ten percent tariff on goods, still indeed having
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  Speaker 5: that ten percent tariff on cars even under a quota.
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  Speaker 5: So yeah, it's a limited victure I think seen in
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  Speaker 5: the UK, but that's never less welcome.
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  Speaker 4: How does Prime Minister Cure Starmer sell this to say
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  Speaker 4: Europe Like, Hey, I did this deal, but you should
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  Speaker 4: also do a deal with me. And this is why
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  Speaker 4: when there's going to be some tension there between and
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  Speaker 4: say the US and the EU.
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  Speaker 5: Yeah, I think the UK has been quite careful with
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  Speaker 5: this agreement with the US not to commit to anything
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  Speaker 5: that would materially obstruct them from doing a closer deals
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  Speaker 5: economically with the EU. So, for example, on food standards, yes,
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  Speaker 5: we do have provision in this agreement for beef more
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  Speaker 5: beef imports into the UK from the US, but the
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  Speaker 5: UK has said they are maintaining very strict standards on food,
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  Speaker 5: for example, which are a key redline for the European Union.
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  Speaker 5: So I think that what's happened here is the UK
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  Speaker 5: is still trying to walk this tightrope of economic ties
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  Speaker 5: between the USNU and has managed to broadly maintain that here.
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  Speaker 5: But it has meant that the scope fumbition for this
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  Speaker 5: US deal has had to be limited.
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  Speaker 2: All right, Joe, thanks so much for joining us. I
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  Speaker 2: really appreciate getting a couple of minutes of your time. Jomes.
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  Speaker 2: He covers a UK economy for Bloomberg News. He's based
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  Speaker 2: in our Queen Victoria Street station over there.
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