Trade Agreement between U.S. and U.K.
The agreement between the United States and U.K. sets a 10% base tariff rate that is not up for negotiation. Reciprocal tariffs are based on how open the economy is to exports and the trade deficit. The U.K. allowed more services from the U.S. in exchange for help with cars, steel, and aluminum.
Key Points
- 10% base tariff rate is non-negotiable
- Reciprocal tariffs based on openness to exports and trade deficit
Pros
- Establishes clear guidelines for tariffs
- Promotes fair trade practices
Cons
- Potential for higher tariffs on other trading partners