Coffee House Shots White smoke on a US trade deal
May 8, 2025
Kate Andrews, the Economics Editor at the Spectator, shares her insights on the groundbreaking US-UK trade deal. She discusses the removal of tariffs on steel and aluminum and the significant cuts to car export tariffs. The implications for both the Labour government and Donald Trump are examined, raising questions about who truly benefits from the agreement. As protectionist policies loom large, Andrews also highlights the shifting geopolitical landscape and the deal's potential effects on international trade relations.
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Targeted, Not Comprehensive Deal
- The US-UK deal is targeted and not a comprehensive free trade agreement but still a positive step.
- Key compromises include removal of some tariffs and ignoring the UK's digital services tax, signaling room for growth.
Mixed Outcomes and Messages
- The UK is better off than yesterday under this deal but worse off than six months ago.
- Trump mixes partial free trade with protectionist rhetoric to appeal to both sides.
Tariffs Viewed as Taxes in US
- Americans increasingly see tariffs as taxes that raise prices for consumers and businesses.
- Political parties avoid pushing this narrative fully due to electoral concerns in key states.