UK Offers Concessions on Digital Tax
Proposes Lower Tariffs on US Cars and Agricultural Products
The United States is reportedly considering applying low-tariff quotas to imports of British steel and automobiles.
On May 6 (local time), the Financial Times (FT) reported that the United States and the United Kingdom are expected to sign a trade agreement this week that includes these measures.
Previously, President Trump imposed a 25% tariff on all steel, aluminum, and automobile imports into the United States. However, discussions are underway about imposing a lower tariff, rather than the 25%, on a certain volume of British steel and automobile imports. In his first term, President Trump set a 25% tariff on steel but granted tariff-free quotas for certain countries, such as South Korea. It appears that in his second term, similar exceptions may be made, starting with the United Kingdom.
In addition to the quota system with low tariffs for steel and automobiles, the United Kingdom is also reported to have requested a reduction in the high 25% tariff rate.
According to the media, the United Kingdom has offered concessions regarding the digital tax imposed on major U.S. tech companies and has proposed reducing tariffs on U.S. automobiles and agricultural products.
However, the two sides reportedly remain at odds over pharmaceutical tariffs. The previous day, President Trump announced that pharmaceutical tariffs would be introduced within two weeks. Since the United Kingdom exports a significant amount of pharmaceuticals to the United States, there is reportedly a considerable difference in positions between the two countries. The media also reported that the import of U.S. chicken and beef is another major point of contention.
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