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Tariffs slashed for UK as Trump and Starmer agree historic trade deal

Britain’s Prime Minister Keir Starmer speaks on the phone to U.S. President Donal Trump at a car factory in the West Midlands, Britain, Thursday, May 8, 2025
Britain’s Prime Minister Keir Starmer speaks on the phone to U.S. President Donal Trump at a car factory in the West Midlands, Britain, Thursday, May 8, 2025 (Reuters)
  • UK Prime Minister Keir Starmer and US President Donald Trump have reached a historic trade agreement, reducing tariffs imposed by Trump's "Liberation Day" policy.
  • The deal cuts US tariffs on UK cars from 27.5% to 10% for up to 100,000 vehicles and eliminates tariffs on steel and aluminum. The UK will scrap its tariff on US ethanol.
  • While hailed as a significant achievement by Starmer and Trump, the deal is not a full free trade agreement and focuses on specific industries.
  • The agreement follows the UK's recent trade deal with India and precedes an anticipated agreement with the EU.
  • Despite the positive development, critics point out that the new terms are still less favorable for the UK than before Trump's presidency.
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