Donald Trump represents the trade agreement with Great Britain as a “breakthrough”. The agreement may be even more important for the British. But details remain unclear for the time being.
What does that see Trade agreement between the United States and Great Britain?
US President Donald Trump has announced a trade agreement with the United Kingdom in the White House – in the presence of the British ambassador and former Minister of Commerce Peter Mandelson. The British Prime Minister Keir Strander, who was switched on by phone, spoke of a “great, historical day”.
According to the US Minister of Trade Howard Lutnik, Great Britain will be allowed to introduce 100,000 cars to the United States for the original base in the United States each year. Introductors and aircraft parts from Rolls Royce should be introduced duty -free. The high US tariffs on British steel and aluminum should also be omitted. According to Trump, in return, a relieved market access for beef, ethanol and other agricultural products from the USA in Great Britain is planned.
The US President spoke of a “breakthrough” – but at the same time admitted that details had to be worked out. The British side also said that the agreement was only a “beginning”.
Which tariffs had the United States previously imposed Great Britain?
During his second term, President Donald Trump took several protectionist measures that also met Great Britain, including a basic customs of 10 percent on all imports and 25 percent tariffs on steel, aluminum and cars. On May 5, Trump also announced a 100 percent customs on films produced abroad.
How important is trade in the USA for Great Britain?
According to data from the British Ministry of Economic Affairs and Commerce, the United States is by far the most important trading partner of the UK; In 2024 they stood for 17.7 percent of the total British foreign trade. The United States is both the largest export and the largest importing market in Great Britain.
Last year, the British exported goods and services worth £ 196.3 billion to the United States, which corresponds to 22.5 percent of the total British exports. 16.2 percent of all of Britain’s exports went to the United States, with 27.0 percent of all exports.
The imports from the United States (goods and services) amounted to a total of £ 118.3 billion, which is 13.1 percent of the overall British imports. Great Britain thus recorded a trade surplus of £ 77.9 billion with the USA, especially in the service sector.
And vice versa: how important is Great Britain as a trading partner for the USA?
Great Britain is also a very important trading partner for the United States – but Great Britain is far from the same importance for the United States as vice versa. Great Britain, according to the United States Trade 2024, was only the fifth largest export market for US goods with a volume of $ 79.9 billion.
In return, the United States imported the value of $ 68.8 billion from Great Britain, making the United Kingdom in seventh place of the most important importing partners. The United States Trade does not provide detailed data on the top export countries in the USA for services for services.
What exactly does Great Britain export to the United States?
In the exported British, 2024 cars were at the forefront of £ 9.0 billion, followed by pharmaceutical products (£ 6.6 billion) and mechanical generators (£ 4.6 billion). Britain was recently the sixth largest importer from cars to the USA, with most of the cars exported to the United States from British production Premium cars such as the Bentley of Volkswagen or high-end vehicles such as the super sports cars of McLaren.
In the case of services, business services make up the majority of British exports to the United States with £ 61.2 billion. Financial services (£ 61.2 billion) as well as insurance and pensions (£ 11.9 billion) follow in places second and three.
And what are the British from the USA?
Crude oil (£ 8.7 billion), mechanical generators (£ 5.8 billion) and refined oil (£ 4.0 billion) are the most important three import goods from the USA in Great Britain. In the case of services, business services (£ 30.5 billion) are also ahead, followed by travel services (£ 7.8 billion) and intellectual property (6.0 billion pounds).
What is one Free trade agreement?
A free trade agreement is a international law contract between two or more countries that aim to reduce or eliminate trade barriers such as tariffs and import quotas. In contrast to protectionism, this should make it easier to exchange goods and service between the countries and thus promote economic growth.
Who are the heads behind the idea of free trade?
Economists like Adam Smith and David Ricardo were pioneering. The Scot Adam Smith came to the conclusion in his work “Promotion of the Nations” in 1776: Each country should only produce the goods that can offer it cheaper or faster than the rest of the world. If trade barriers such as tariffs fall away, the prosperity of all countries increases.
The British economist David Ricardo had a similar idea at the beginning of the 19th century with his “theory of comparative cost advantages”. Accordingly, the trade between two countries is worthwhile as soon as they produce their goods at different costs. This international division of labor promotes the prosperity of everyone. To date, Ricardo’s model is the theoretical basis for the worldwide exchange of goods.
