USA/UK trade deal 'positive news' says Cov and Warks chamber of commerce
The deal will see tariffs on car exports from the UK to the USA drop from 27.5 per cent to 10 per cent
A local leading business figure says yesterday's USA/UK trade deal is calling the news hugely positive for the region.
The deal will see tariffs on car exports from the UK to the USA drop from 27.5 per cent to 10 per cent and a commitment to remove tariffs from aerospace parts completely, which currently stand at 10 per cent.
A 'real sign' of the importance of global trade
Corin Crane, the chief executive of the Coventry and Warwickshire Chamber of Commerce, said it would be welcomed by key industries: “The economy of our region has evolved over the years, but the car industry is still very important to us and is fundamental to our success, so it is hugely positive news for the President and Prime Minister to announce they’ve reached a deal in this area.
“I know it has taken a lot of hard work behind the scenes to reach this agreement with the US, which looks to be bearing fruit. The supply chain in our area will be thrilled with this news after months of uncertainty.
“It’s not only the car industry, we’ve got a strong base of aerospace businesses in Coventry, Warwickshire and the wider Midlands too, and this deal benefits them too.
“The Government has also made progress with India and the EU, which is a real sign that global trade is vitally important to our future growth.
“I would urge businesses across the region to get in touch with the team at the Chamber to find out how they can be supported with exporting. It might be something that’s brand new to them or they may be looking to expand their markets overseas, we’ve got a great team that can help them.
“Doing business internationally is proven to increase a businesses’ chances of growth, make it more efficient and more resilient.”
'Music to the ears of affected sectors'
William Bain, British Chambers of Commerce Head of Trade Policy, said: “News that the trade deal with the US has been agreed on automotives and jet engines will be music to the ears of affected sectors.
“They are desperate for tariff relief and lower costs, and this new Executive Order should deliver that.
“For the automotive sector, operating under 27.5 per cent tariffs on sales to the US over the past two months has been tough. A reduction to a 10 per cent levy from the end of June will help order books, investment and jobs.
“However, for steel and aluminium firms the wait goes on. They have faced 25 per cent US tariffs for the past three months and are still awaiting the resolution of outstanding issues on the new US quotas.
“But the deal does also implement zero tariff arrangements on UK Rolls Royce jet engines by the end of this month – a vital part of aerospace supply chains in the US.
“Both Governments should now build upon this current deal to secure an agreement on digital trade to make trans-Atlantic trade cheaper, speedier and more efficient.
“We also need to make the case for further tariff relief in other goods sectors affected by the US reciprocal tariffs, from clothing to food and drink.”
A 'very important day'
Despite some slash trade barriers on goods from both countries being slashed, the news leaves the future of tariffs on British steel up in the air.
The Prime Minister said the move marked a "very important day" for both sides as the US president announced the agreement was "done" in a joint appearance on the sidelines of the G7 summit in Canada.
The deal will grant British carmakers a reprieve by the end of June as levies drop from 25% to 10%, while the aerospace sector will face no import taxes.
But tariffs for the steel industry will stand at 25% for now rather than falling to zero as originally agreed.
This is less than the US global rate of 50% for steel and aluminium.
In an impromptu media spray, the US president was asked whether steel tariffs would be eliminated, to which he replied: "We're gonna let you have that information in a little while."
The Department for Business and Trade said the two leaders had pledged to "make progress towards 0% tariffs on core steel products as agreed".
Asked whether Britain would be shielded from future tariffs, Mr Trump said the UK was protected "because I like them".
"The UK is very well protected, you know why? Because I like them. That's their ultimate protection," he said.
The PM told the US President: "Donald, thank you very much... A really important agreement. And so this is a very good day for both of our countries, a real sign of strength."
The terms of the deal were agreed in May, but neither Washington nor London had yet taken the necessary steps to reduce tariffs.
Reports have since suggested the US could also push for the NHS to pay more for American drugs in exchange for softened tariffs, with White House sources telling the Telegraph the service would be expected to pay higher prices.
Downing Street insisted the Government will "only ever sign trade agreements that align with the UK's national interests" but did not rule out discussing the issue with Washington.