U.K. Government Reviews U.S. Trade Deal Amid Tariff Concerns
The U.K. government is assessing its Economic Prosperity Deal with the U.S., signed over two months ago, amidst concerns regarding tariff implementation. President Biden acknowledged this during a recent statement, expressing a desire to “make the prime minister happy,” reports 24brussels.
Amongst the key points of contention is the reciprocal tariff rate, which stands at 10 percent. The U.K. is urging the U.S. to fulfill its promise of reducing tariffs on steel and aluminum from 25 percent to zero. However, U.S. regulations known as “melt and pour rules” complicate the situation by requiring that steel must be melted and poured within the U.K. to qualify for any tariff relief.
When questioned about tariff adjustments specifically for steel and aluminum, President Biden refrained from providing a direct response. He did, however, highlight the importance of the trade deal, stating, “We’re in great shape, a great deal was made with the UK prime minister — they did a great job. You know, they’ve been trying to make that deal for 12 years, and he got it done, so everybody respects him.”
The President emphasized the expected job opportunities generated for both countries and noted that a positive trade agreement further strengthens the bilateral relationship. “It’s going to be a lot of jobs for here, and great for America, and in terms of the relationship … our relationship is unparalleled, but it keeps it even closer when you have a good trade deal,” he added.
Furthermore, discussions on potential tariff reductions on Scotch whisky, a significant export for the U.K., were also raised during the dialogue. The outcome of these negotiations remains to be seen as both nations pursue a mutually beneficial economic partnership.
