Tariffs and Trade Deal Between the U.S. and U.K.

SOURCE reason.com
The new trade deal between the United States and the United Kingdom maintains a 10 percent universal tariff on imports to the U.S., which is a tariff hike on American consumers. While American businesses may benefit from lower U.K. tariffs, American consumers will face higher taxes on major imports from the U.K. Overall, the deal appears to favor British consumers over American consumers.

Key Points

  • Maintains a 10 percent universal tariff on imports to the U.S.
  • American consumers facing higher taxes on major imports from the U.K.
  • Lower U.K. tariffs benefit some American businesses.

Pros

  • Lower U.K. tariffs benefit some American businesses, like cattle farmers.

Cons

  • American consumers face higher taxes on major imports from the U.K., such as machinery and pharmaceuticals.
  • The deal locks in a limit on the number of British-built cars that can be imported to the U.S., potentially hindering market dynamism.