Recently, the United Kingdom and the United States have finalised a one-year temporary trade arrangement, a move regarded as a prelude to a future comprehensive trade agreement.
In this agreement, the US side will reduce the import tariffs on British-made cars, including brands such as Land Rover, to 10%. Meanwhile, both sides have significantly relaxed restrictions on beef trade, almost eliminating all tariffs. However, the UK insists on banning the import of hormone-containing US beef to ensure domestic food safety.
In March this year, the Trump administration announced a 25% tariff on all foreign cars and parts, which led Jaguar Land Rover to suspend its exports to the United States. This agreement offers British automakers a low-tariff export quota of up to 100,000 vehicles per year, which is expected to help British automakers resume some of their car sales to the United States.
Furthermore, the United Kingdom and the United States are currently negotiating on the issue of tariffs on steel products. The current 25% tax rate imposed on British steel is expected to be reduced, but the specific quotas and details are still under discussion. According to a government source, this agreement will bring immediate relief effects to multiple industries.
U.S. Commerce Secretary John Lutnick said in the Oval Office of the White House that by expanding the access rights of U.S. exporters to overseas markets, the agreement is expected to bring up to 5 billion U.S. dollars of additional export opportunities to the United States. He emphasized that the UK has committed to opening its market, which is a major boost for American exporters. Meanwhile, although the 10% tariff is still retained, the US government is expected to obtain approximately 6 billion US dollars in tax revenue as a result.
In response to concerns from the outside world that the British economy might come under pressure, Lutnick said that this agreement would neither have an adverse impact on British workers nor put pressure on the British economy as a whole. According to the agreement arrangement, the UK can export up to 100,000 vehicles to the US each year and only needs to pay a 10% import tariff.
Influenced by the trade agreement between the United States and the United Kingdom, the market’s expectations of the trade war have changed, and the stock market has recovered all the losses since April 2nd. In the field of cryptocurrencies, Bitcoin has successfully broken through the $100,000 mark. As of the time of writing, its quoted price was $101,103, with an intraday increase of 4.09%. This is the first time since the beginning of February this year that Bitcoin has reached this level. Meanwhile, Ethereum, which had been quiet for some time, also performed very well. Stimulated by the news, it soared by nearly 13% directly and was quoted at $2,045 as of the time of writing.
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