Economic Implications of U.S. Tariffs

It’s a massive day for the Labour government and for Keir Starmer, as the UK becomes the first country to sign a trade deal with the US following the tariff turmoil of last month. Donald Trump described it as a ‘full and comprehensive deal’ … although we are still waiting for some of the details to be thrashed out. What we do know is this: the 25 per cent tariff on UK steel and aluminium has been removed and the rate on most car exports has been slashed from 27.5 per cent to 10 per cent. In return, the UK is removing the tariff on ethanol for US goods and has agreed ‘reciprocal market access on beef’. So far there is no word on the digital services tax, and Britain is still liable to pay the 10 per cent baseline tariff rate.

On both sides of the pond, the deal is being described as ‘historic’ by leaders who – for their own reasons – could really do with a win. But who does this deal favour? Is it a coup for Starmer – or Trump?

Oscar Edmondson speaks to Kate Andrews and Michael Simmons.

Produced by Oscar Edmondson.