Latest news with #USUKdeal
Yahoo
17 hours ago
- Business
- Yahoo
Trump tariffs live updates: US talks with Canada, EU take focus as deadlines loom
President Trump this week firmed up a trade deal with the United Kingdom, and its European Union neighbors are apparently pushing for a similarly styled deal despite talks seeing starts and stops over the past several weeks. According to reports, the EU now expects a 10% "reciprocal" tariff to be the starting point for an US-EU trade deal. The FT reported on Thursday that the EU is pushing for a deal modeled on the US-UK agreement, which did leave the baseline levy in place. Trump has threatened tariffs of up to 50% on EU imports after various tariff "pauses" lapse July 9. Elsewhere this week, Trump said Japan would soon receive a letter he has threatened to send to US trading partners who do not reach a deal, calling the country's negotiators "tough." Meanwhile, in Canada, Prime Minister Mark Carney's government threatened to hike tariffs by late July on US imports of steel and aluminum after Trump ballooned US levies to 50%. At the G7 this week, Trump and Carney both expressed optimism on a trade deal between the countries. The furious push follows Trump's recent warning that he would soon send letters setting unilateral tariff rates, raising questions about the status of negotiations and a return to his "Liberation Day" tariffs that roiled markets. Trump instituted a pause on his most punishing duties that expires July 9. Federal Reserve Chair Jerome Powell said as the central bank held interest rates steady this week that the Fed is still waiting to see the effects of the tariffs on prices. "We're beginning to see some effects, and we do expect to see more of them over the coming months," he said. He said the Fed needs more data, saying "the pass-through of tariffs to consumer price inflation is a whole process that's very uncertain." Meanwhile, Bloomberg reported on Tuesday that two family-owned businesses have filed a challenge to Trump's most sweeping tariffs with the Supreme Court, expediting the process for a potential definitive ruling should the court take the case. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Bloomberg reports: Read more here. Tariffs and conflict have clouded the outlook for central banks. President Trump's sweeping tariff threats and the escalating Israel-Iran conflict have left central banks steering policy amid rare global economic uncertainty. Reuters reports: Read more here. A study from Bain & Co. on Thursday, has shown that global sales of personal luxury goods will slow, but not collapse. AP reports: Read more here. Reuters reports: Read more here. According to the FT, the EU is pushing for a UK-style trade deal with the US. This would allow for some tariffs to remain in place after President Trump's July 9 deadline and would prevent any further retaliation against Washington. The FT reports: Read more here. European officials now expect a 10% "reciprocal" tariff to be the starting point in any US-EU trade deal, according to five sources close to the talks. According to Reuters, EU negotiators are still pushing for the rate to be lower than 10%. However, ine of the sources, an EU official, said negotiating this had become harder since the US started drawing reve from its global tariffs. Reuters reports: Read more here. President Trump's first five months in office have been dominated by his trade war. Despite having some recent wins, Trump is running out of time to "seal the deal." CNN reports: Read more here. Over 70% of Japanese firms say the business impact of US tariffs is as expected and have not adjusted their investment plans, a Reuters survey shows. Reuters reports: Read more here. Fed Chair Jerome Powell signaled he's watching the near-term developments on tariffs very closely, as the Fed expects to see more tariff effects filter through to consumer prices throughout the summer. The next major tariff policy deadline is July 9, when the steeper "Liberation Day" tariffs are expected to resume if deals are not reached or if the Trump administration decides not to extend the pause. The next report on core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation measure, is scheduled to be released on June 27. It remains to be seen when and how tariff costs are distributed. "The pass-through of tariffs to consumer price inflation is a whole process that's very uncertain," Powell explained. "There are many parties in that chain — there's the manufacturer, the exporter, the importer, the retailer, and the consumer, and each one of those is going to be trying not to be the one to pay for the tariff. But together they will all pay for the tariff, or maybe one party will pay it all." "But that process is very hard to predict, and we haven't been through a situation like this," he added. "We'd like to get some more data." Federal Reserve Chair Jerome Powell commented on "elevated" tariff levels Wednesday after the central bank held interest rates steady for the fourth meeting in a row. "We're beginning to see some effects, and we do expect to see more of them over the coming months," Powell said at a press conference. "What we've learned is that ... tariffs are going to be substantially larger than forecasters generally thought," he added later on. "What we learned, particularly in April, was that substantially larger tariffs were coming and that that would mean higher inflation. That's what happened." Powell stated that the US economy is a "solid" but that the Fed needs to see more evidence that inflation is moving down before it cuts rates. However, he said tariffs are hindering that progress on inflation. Powell noted that Fed officials' estimates of core Personal Consumption Expenditures (PCE) for 2025 have moved higher. "Without tariffs, that confidence would be building because if you see what's happening with non-housing services and housing services ... those are coming down really nicely now," Powell said. "I think we have to learn a little more about tariffs. ... I think it's hard to know with any confidence how we should react until we see really the size of the effects, then we can start to make a better judgment, and that's what we're doing." Watch the full press conference here. US consumers are becoming more worried about rising prices fueled by tariffs, a report from the credit reporting agency, TransUnion has shown. Reuters reports: Read more here. President Trump claimed this week that his trade posturing helped clinch a ceasefire between India and Pakistan after tensions bubbled up last month. Indian Prime Minister Narendra Modi says that's not the case, adding to tensions between the US and India as the countries are indeed working to clinch a trade deal before Trump's pause on "Liberation Day" duties expires. Via Bloomberg, Modi attempted to set the record straight during a call with Trump, according to India's foreign secretary: Read more here. Taiwan has joined the US campaign and blacklisted China's Huawei Technologies Co. Bloomberg News reports: Read more here. Trump is also pushing ahead with another tariff bombardment, which some believe may be more legally sound than his country-by-country duties. The US Commerce Department has been investigating certain sectors, which are considered to be of national interest, such as semiconductors, pharma products and critical minerals. The investigation is set to conclude soon and it could mean that some foreign-made products coming into the US will face high duties. Bloomberg News reports: Read more here. Japanese Prime Minister Shigeru Ishiba's aim to get US President Trump to relax tariffs is not just impacting his country's economy. It is also affecting his political future. Bloomberg News reports: Read more here. Hasbro (HAS), the maker of popular game Monopoly, announced on Tuesday that it would be cutting 3% of its total workforce due to high US tariffs on toys coming from China. Reuters reports: Read more here. Shares of Nintendo (NTDOY, 7974.T) continued to climb, with President Trump's trade policy shift providing an added tailwind to the success of its Switch 2 games console update. The stock jumped in Tokyo, while the US-listed stock popped before the bell on Wednesday. According to analysts, due to the US and Japan failing to reach a tariff agreement at the G-7 meeting this week, funds are flowing into the gaming sector, which is less affected by President Trump's tariffs. Bloomberg reports: Read more here. Bloomberg reports that two family-owned companies are asking the Supreme Court to consider striking down President Trump's most sweeping tariffs. Legal experts previously told Yahoo Finance that they expect the case to eventually be taken up by the Supreme Court as part of the president's high-stakes legal battles over the policy. From Bloomberg: Transportation Secretary Sean Duffy said at the Paris Airshow that he wants to return to a 1979 zero-tariff trade agreement for the aviation industry but acknowledged it's part of larger tariff negotiations. "You look at what free trade has done for aviation," Duffy said, per Reuters. "It's been remarkable for them. It's a great space of net exporters. And so the White House understands that, but if you go over there and you see the moving parts of what they're dealing with, it is pretty intense, and it's a lot." The US is a net exporter in aerospace, with a trade surplus of nearly $75 billion for the sector. Since the 1979 Agreement on Trade in Civil Aircraft went into effect, US commercial aerospace exports increased by more than 2,100%, according to a white paper. Duffy highlighted some of those benefits, stating: "I think we should take aviation off the negotiating table by going back to '79, and that only helps us. And to take some tools away from our trading partners would be beneficial to us." A delegation of lawmakers is in attendance at the Paris Airshow to shore up economic partnerships. Industry lobbyists have been seeking to return to the 1979 agreement since the Trump administration imposed 10% tariffs on imported planes, jet engines, and parts. Meanwhile, macroeconomic uncertainty stemming from tariffs and other factors has begun to weigh on travel demand. On Monday, JetBlue (JBLU) revealed it was cutting flights, citing consumers pulling back on spending. Read more here. US consumers will bear the tariff cost, according to Japan's Mitsubishi Motors (MMTOY, 7211.T) which announced on Tuesday that it will raise US vehicle prices by an average 2.1%. Mitsubishi is the latest company to pass along cost increases to its customers as their expenses rise due to President Trump's tariffs. Reuters reports: Read more here. Bloomberg reports: Read more here. Tariffs and conflict have clouded the outlook for central banks. President Trump's sweeping tariff threats and the escalating Israel-Iran conflict have left central banks steering policy amid rare global economic uncertainty. Reuters reports: Read more here. A study from Bain & Co. on Thursday, has shown that global sales of personal luxury goods will slow, but not collapse. AP reports: Read more here. Reuters reports: Read more here. According to the FT, the EU is pushing for a UK-style trade deal with the US. This would allow for some tariffs to remain in place after President Trump's July 9 deadline and would prevent any further retaliation against Washington. The FT reports: Read more here. European officials now expect a 10% "reciprocal" tariff to be the starting point in any US-EU trade deal, according to five sources close to the talks. According to Reuters, EU negotiators are still pushing for the rate to be lower than 10%. However, ine of the sources, an EU official, said negotiating this had become harder since the US started drawing reve from its global tariffs. Reuters reports: Read more here. President Trump's first five months in office have been dominated by his trade war. Despite having some recent wins, Trump is running out of time to "seal the deal." CNN reports: Read more here. Over 70% of Japanese firms say the business impact of US tariffs is as expected and have not adjusted their investment plans, a Reuters survey shows. Reuters reports: Read more here. Fed Chair Jerome Powell signaled he's watching the near-term developments on tariffs very closely, as the Fed expects to see more tariff effects filter through to consumer prices throughout the summer. The next major tariff policy deadline is July 9, when the steeper "Liberation Day" tariffs are expected to resume if deals are not reached or if the Trump administration decides not to extend the pause. The next report on core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation measure, is scheduled to be released on June 27. It remains to be seen when and how tariff costs are distributed. "The pass-through of tariffs to consumer price inflation is a whole process that's very uncertain," Powell explained. "There are many parties in that chain — there's the manufacturer, the exporter, the importer, the retailer, and the consumer, and each one of those is going to be trying not to be the one to pay for the tariff. But together they will all pay for the tariff, or maybe one party will pay it all." "But that process is very hard to predict, and we haven't been through a situation like this," he added. "We'd like to get some more data." Federal Reserve Chair Jerome Powell commented on "elevated" tariff levels Wednesday after the central bank held interest rates steady for the fourth meeting in a row. "We're beginning to see some effects, and we do expect to see more of them over the coming months," Powell said at a press conference. "What we've learned is that ... tariffs are going to be substantially larger than forecasters generally thought," he added later on. "What we learned, particularly in April, was that substantially larger tariffs were coming and that that would mean higher inflation. That's what happened." Powell stated that the US economy is a "solid" but that the Fed needs to see more evidence that inflation is moving down before it cuts rates. However, he said tariffs are hindering that progress on inflation. Powell noted that Fed officials' estimates of core Personal Consumption Expenditures (PCE) for 2025 have moved higher. "Without tariffs, that confidence would be building because if you see what's happening with non-housing services and housing services ... those are coming down really nicely now," Powell said. "I think we have to learn a little more about tariffs. ... I think it's hard to know with any confidence how we should react until we see really the size of the effects, then we can start to make a better judgment, and that's what we're doing." Watch the full press conference here. US consumers are becoming more worried about rising prices fueled by tariffs, a report from the credit reporting agency, TransUnion has shown. Reuters reports: Read more here. President Trump claimed this week that his trade posturing helped clinch a ceasefire between India and Pakistan after tensions bubbled up last month. Indian Prime Minister Narendra Modi says that's not the case, adding to tensions between the US and India as the countries are indeed working to clinch a trade deal before Trump's pause on "Liberation Day" duties expires. Via Bloomberg, Modi attempted to set the record straight during a call with Trump, according to India's foreign secretary: Read more here. Taiwan has joined the US campaign and blacklisted China's Huawei Technologies Co. Bloomberg News reports: Read more here. Trump is also pushing ahead with another tariff bombardment, which some believe may be more legally sound than his country-by-country duties. The US Commerce Department has been investigating certain sectors, which are considered to be of national interest, such as semiconductors, pharma products and critical minerals. The investigation is set to conclude soon and it could mean that some foreign-made products coming into the US will face high duties. Bloomberg News reports: Read more here. Japanese Prime Minister Shigeru Ishiba's aim to get US President Trump to relax tariffs is not just impacting his country's economy. It is also affecting his political future. Bloomberg News reports: Read more here. Hasbro (HAS), the maker of popular game Monopoly, announced on Tuesday that it would be cutting 3% of its total workforce due to high US tariffs on toys coming from China. Reuters reports: Read more here. Shares of Nintendo (NTDOY, 7974.T) continued to climb, with President Trump's trade policy shift providing an added tailwind to the success of its Switch 2 games console update. The stock jumped in Tokyo, while the US-listed stock popped before the bell on Wednesday. According to analysts, due to the US and Japan failing to reach a tariff agreement at the G-7 meeting this week, funds are flowing into the gaming sector, which is less affected by President Trump's tariffs. Bloomberg reports: Read more here. Bloomberg reports that two family-owned companies are asking the Supreme Court to consider striking down President Trump's most sweeping tariffs. Legal experts previously told Yahoo Finance that they expect the case to eventually be taken up by the Supreme Court as part of the president's high-stakes legal battles over the policy. From Bloomberg: Transportation Secretary Sean Duffy said at the Paris Airshow that he wants to return to a 1979 zero-tariff trade agreement for the aviation industry but acknowledged it's part of larger tariff negotiations. "You look at what free trade has done for aviation," Duffy said, per Reuters. "It's been remarkable for them. It's a great space of net exporters. And so the White House understands that, but if you go over there and you see the moving parts of what they're dealing with, it is pretty intense, and it's a lot." The US is a net exporter in aerospace, with a trade surplus of nearly $75 billion for the sector. Since the 1979 Agreement on Trade in Civil Aircraft went into effect, US commercial aerospace exports increased by more than 2,100%, according to a white paper. Duffy highlighted some of those benefits, stating: "I think we should take aviation off the negotiating table by going back to '79, and that only helps us. And to take some tools away from our trading partners would be beneficial to us." A delegation of lawmakers is in attendance at the Paris Airshow to shore up economic partnerships. Industry lobbyists have been seeking to return to the 1979 agreement since the Trump administration imposed 10% tariffs on imported planes, jet engines, and parts. Meanwhile, macroeconomic uncertainty stemming from tariffs and other factors has begun to weigh on travel demand. On Monday, JetBlue (JBLU) revealed it was cutting flights, citing consumers pulling back on spending. Read more here. US consumers will bear the tariff cost, according to Japan's Mitsubishi Motors (MMTOY, 7211.T) which announced on Tuesday that it will raise US vehicle prices by an average 2.1%. Mitsubishi is the latest company to pass along cost increases to its customers as their expenses rise due to President Trump's tariffs. Reuters reports: Read more here.
Yahoo
3 days ago
- Business
- Yahoo
Trump says US-UK deal ‘done' as steel tariffs still up in air
Donald Trump and Sir Keir Starmer have finalised a US-UK deal that will slash trade barriers on goods from both countries, but 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, which is of key economic importance to the UK, 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. The Prime Minister described the pact as a 'sign of strength' in the transatlantic relationship, while Mr Trump praised Sir Keir as a 'friend' who had done a 'great job' securing the deal that eluded leaders before him. Following the hastily arranged meeting, the two leaders posed for pictures outside the G7 venue with the signed documents, which the US president dropped before Sir Keir picked them up. Mr Trump also mistakenly referred to the pact as a 'trade agreement with the European Union.' 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. The Prime Minister was also insistent that a nuclear submarine deal between the UK, US and Australia, called Aukus, is 'very important' to both the United States and Britain. He said it was proceeding despite Washington launching a review into the pact, which is worth around £176 billion and believed to be aimed at countering China. He said: 'We're proceeding with that, it's a really important deal to both of us. 'I think the president is doing a review, we did a review when we came into government, and that makes good sense to me.' Later on Monday, White House press secretary Karoline Leavitt announced on X that Mr Trump would be leaving the summit early due to the situation in the Middle East, following a dinner with heads of state. 'Much was accomplished, but because of what's going on in the Middle East, President Trump will be leaving tonight after dinner with Heads of State,' she said. Meanwhile, Sir Keir and his fellow world leaders are locked in a week of intense diplomacy amid the spiralling conflict in the Middle East and the war in Ukraine. The Prime Minister joined Italian Premier Giorgia Meloni, French President Emmanuel Macron, Mr Carney and German Chancellor Friedrich Merz for a glass of wine and informal discussions on Sunday night. Downing Street dismissed suggestions that the get-together had been a 'Trump-handling' exercise to prove the summit against the US president's unpredictability as leaders seek to put on a united front in the face of heightened global instability. Splits had earlier opened up in the response to Russia, which Mr Trump suggested should not have been kicked out of the former G8 following its annexation of Crimea in 2014. The US leader also signalled his reluctance to impose further American sanctions on Moscow despite a European push to heap more pressure on Vladimir Putin as he resists calls for an unconditional ceasefire in Ukraine. Standing alongside Sir Keir, who had earlier said G7 allies would seek to ratchet up measures against the Kremlin, Mr Trump said sanctions were 'not that easy' and would cost Washington 'a tremendous amount of money'. Asked whether Washington supported European efforts to impose further measures, he told reporters ahead of a bilateral meeting with the UK Prime Minister: 'Well Europe is saying that, but they haven't done it yet. 'Let's see them do it first.' Asked why he wanted to wait to impose sanctions, Mr Trump said: 'Because I'm waiting to see whether or not a deal is done… and don't forget, you know, sanctions cost us a lot of money.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Trump says US-UK deal ‘done' as steel tariffs still up in air
Donald Trump and Sir Keir Starmer have finalised a US-UK deal that will slash trade barriers on goods from both countries, but 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, which is of key economic importance to the UK, 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. The Prime Minister described the pact as a 'sign of strength' in the transatlantic relationship, while Mr Trump praised Sir Keir as a 'friend' who had done a 'great job' securing the deal that eluded leaders before him. Following the hastily arranged meeting, the two leaders posed for pictures outside the G7 venue with the signed documents, which the US president dropped before Sir Keir picked them up. Mr Trump also mistakenly referred to the pact as a 'trade agreement with the European Union.' 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. The Prime Minister was also insistent that a nuclear submarine deal between the UK, US and Australia, called Aukus, is 'very important' to both the United States and Britain. He said it was proceeding despite Washington launching a review into the pact, which is worth around £176 billion and believed to be aimed at countering China. He said: 'We're proceeding with that, it's a really important deal to both of us. 'I think the president is doing a review, we did a review when we came into government, and that makes good sense to me.' Sir Keir and his fellow world leaders are locked in a week of intense diplomacy amid the spiralling conflict in the Middle East and the war in Ukraine. The Prime Minister joined Italian Premier Giorgia Meloni, French President Emmanuel Macron, Mr Carney and German Chancellor Friedrich Merz for a glass of wine and informal discussions on Sunday night. Downing Street dismissed suggestions that the get-together had been a 'Trump-handling' exercise to prove the summit against the US president's unpredictability as leaders seek to put on a united front in the face of heightened global instability. On Monday, splits opened up in the response to Russia, which Mr Trump suggested should not have been kicked out of the former G8 following its annexation of Crimea in 2014. The US leader also signalled his reluctance to impose further American sanctions on Moscow despite a European push to heap more pressure on Vladimir Putin as he resists calls for an unconditional ceasefire in Ukraine. Standing alongside Sir Keir, who had earlier said G7 allies would seek to ratchet up measures against the Kremlin, Mr Trump said sanctions were 'not that easy' and would cost Washington 'a tremendous amount of money'. Asked whether Washington supported European efforts to impose further measures, he told reporters ahead of a bilateral meeting with the UK Prime Minister: 'Well Europe is saying that, but they haven't done it yet. 'Let's see them do it first.' Asked why he wanted to wait to impose sanctions, Mr Trump said: 'Because I'm waiting to see whether or not a deal is done… and don't forget, you know, sanctions cost us a lot of money.'
The Independent
3 days ago
- Business
- The Independent
Trump says US-UK deal ‘done' as steel tariffs still up in air
Donald Trump and Sir Keir Starmer have finalised a US-UK deal that will slash trade barriers on goods from both countries, but 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, which is of key economic importance to the UK, 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. The Prime Minister described the pact as a 'sign of strength' in the transatlantic relationship, while Mr Trump praised Sir Keir as a 'friend' who had done a 'great job' securing the deal that eluded leaders before him. Following the hastily arranged meeting, the two leaders posed for pictures outside the G7 venue with the signed documents, which the US president dropped before Sir Keir picked them up. Mr Trump also mistakenly referred to the pact as a 'trade agreement with the European Union.' 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. The Prime Minister was also insistent that a nuclear submarine deal between the UK, US and Australia, called Aukus, is 'very important' to both the United States and Britain. He said it was proceeding despite Washington launching a review into the pact, which is worth around £176 billion and believed to be aimed at countering China. He said: 'We're proceeding with that, it's a really important deal to both of us. 'I think the president is doing a review, we did a review when we came into government, and that makes good sense to me.' Sir Keir and his fellow world leaders are locked in a week of intense diplomacy amid the spiralling conflict in the Middle East and the war in Ukraine. The Prime Minister joined Italian Premier Giorgia Meloni, French President Emmanuel Macron, Mr Carney and German Chancellor Friedrich Merz for a glass of wine and informal discussions on Sunday night. Downing Street dismissed suggestions that the get-together had been a 'Trump-handling' exercise to prove the summit against the US president's unpredictability as leaders seek to put on a united front in the face of heightened global instability. On Monday, splits opened up in the response to Russia, which Mr Trump suggested should not have been kicked out of the former G8 following its annexation of Crimea in 2014. The US leader also signalled his reluctance to impose further American sanctions on Moscow despite a European push to heap more pressure on Vladimir Putin as he resists calls for an unconditional ceasefire in Ukraine. Standing alongside Sir Keir, who had earlier said G7 allies would seek to ratchet up measures against the Kremlin, Mr Trump said sanctions were 'not that easy' and would cost Washington 'a tremendous amount of money'. Asked whether Washington supported European efforts to impose further measures, he told reporters ahead of a bilateral meeting with the UK Prime Minister: 'Well Europe is saying that, but they haven't done it yet. 'Let's see them do it first.' Asked why he wanted to wait to impose sanctions, Mr Trump said: 'Because I'm waiting to see whether or not a deal is done… and don't forget, you know, sanctions cost us a lot of money.'
Auto Car
22-05-2025
- Automotive
- Auto Car
After the relief, UK car industry anxiously awaits US tariff details
Close The relief that followed the government's announcement that the UK was first to agree a deal with the US to lower the worst of president Donald Trump's tariff hikes on imported cars has been tempered by concern in the industry that the details are still hazy. The so-called US-UK economic prosperity deal agreed that the tariffs of 27.5% on UK cars imported to the US would be cut to 10% on a maximum of 100,000 cars per year. But the wording of the agreement showed that the deal remains in principle only, with details to be thrashed out 'following a reasonable period of negotiation'.
