“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come. Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
Again, a lot of big words but the devil will be in the details. I would expect this to just be more of a skeleton/outline on what both sides are looking for in exchange. In other words, basically just look towards some form of tariffs reduction and concessions in other areas.
As a reminder, this should be one of the more straightforward deals to be struck as the UK was not on the reciprocal tariffs list to begin with. This is due to the more balanced nature of trade between the two countries. So, the UK has “only” been slapped with the blanket 10% tariffs as well as tariffs on autos, steel, and aluminum.
So if getting a full deal here is already a long process, you can imagine how long it will take for other countries that are not as close an ally to the US. I’d take Trump’s “many other deals, which are in serious stages of negotiation” with a pinch of salt really.
This article was written by Justin Low at www.forexlive.com.
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