The USA and the UK have agreed on trade regulations around tariffs and market access, which is the start of the process of a formal trade agreement following the announcement of the reciprocal tariffs last month.
According to an official statement released by The White House, the UK and USA plan to agree on a mutually beneficial trade policy as part of the US-UK Economic Prosperity Deal.
The US-UK Economic Prosperity Deal is a framework designed to support business relations between the two countries. However, the brief did not constitute a legally binding agreement.
The US plans to keep its 10% tariff on UK imports, while the UK will lower tariffs from 5.1% to 1.8%.
Moving forward, the two countries plan to address the tariffs and potentially lower the rates after a period of negotiation.
The deal outlined in the brief also includes new trade rules that allow for easier business operations and will include new terms for other industries, including pharmaceutical, automotive, and digital trade.
The UK and US have officially begun negotiations to finalize the new trade deal.
Additionally, the US is set to begin negotiations with China to come to a mutual agreement surrounding tariffs after ongoing changes to taxes on imported goods.
Meanwhile, retailers in the US are dealing with mounting pressure due to the increased expenses from tariffs and have been rethinking their strategies to deal with the impact of changing trade policies.
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