Particle.news
Download on the App Store
23 ARTICLES
·
2w ago

UK and US Sign Tariff Reduction Deal as Labour Faces Domestic Challenges

The first trade agreement under Trump’s new tariff regime cuts car, steel, and aluminium tariffs but leaves key issues unresolved, while Starmer grapples with internal Labour dissent over welfare reforms.

Image
Image
Image

Overview

  • The UK-US trade deal reduces car import tariffs from 27.5% to 10% for up to 100,000 vehicles annually and imposes quotas on steel and aluminium tariffs.
  • A 10% baseline tariff on most goods remains in place, with further negotiations planned on broader tariffs and digital services taxes.
  • Prime Minister Keir Starmer and Ambassador Peter Mandelson’s personal diplomacy with President Trump was pivotal in securing the agreement.
  • Critics, including Conservatives and some Labour MPs, argue the deal is limited in scope and non-binding, leaving British exporters at a disadvantage compared to earlier in the year.
  • Starmer faces growing unrest within Labour over proposed welfare cuts, with over 80 MPs signaling potential rebellion ahead of a key Commons vote in June.