US President Trump and UK Prime Minister Keir Starmer Announce 25-Year Bilateral Trade Agreement
This morning, on May 9, at the White House, US President Trump and UK Prime Minister Keir Starmer jointly announced the finalization of a 25-year bilateral trade agreement. This agreement covers various industries, including agriculture, automobiles, steel and aluminum, aerospace, and technology. Trump described it as a “remarkable agreement,” while Starmer emphasized it as a turning point for “national security and economic alliance.”
UK-US Trade Agreement Finalized: Market Opening and Elimination of Unfair Barriers
Trump stated that the UK will significantly open its market:
- Complete import of US beef, ethanol, agricultural products, machinery, etc.
- Commitment to eliminate non-tariff barriers that disadvantage the US.
- Accelerated customs clearance processes for US goods.
- The steel and aluminum industries will also recover, with the UK government nationalizing British Steel to meet US national security requirements.
- The US will maintain a 10% low tariff on UK automobiles (down from 25%) to protect jobs in British car manufacturers.
Key Dialogue Between Trump and Starmer Breaks the Ice
Trump emphasized that he personally facilitated the agreement, highlighting that he and the UK Prime Minister engaged in multiple private conversations to reach this point. The UK also praised the efficiency of US negotiations, stating that the overall agreement was completed in 45 days, a “miraculous progress” after years of stagnation.
Deepened Cooperation in Technology, Chips, and National Security
In addition to traditional products, both parties have indicated that future cooperation will strengthen high-end industries such as technology, AI, and semiconductors. The UK noted that the US and UK are currently the only two Western nations with a “trillion-dollar technology industry,” which provides ideal conditions for establishing an economic security alliance.
Trump also mentioned that the US is welcoming a $10 trillion level wave of re-industrialization investments, particularly in chip and automobile manufacturing. He criticized previous administrations for allowing industries to move abroad, but noted that now, through tariff policies, manufacturers are returning.
Trump: “The UK Market Was Previously Quite Closed, But Now It’s Finally Open!”
Trump admitted that he previously did not fully understand how closed the UK market was, citing many unseen restrictions on American products. He emphasized that this agreement will provide the British people with “more affordable choices,” benefiting both parties.
In this regard, US Secretary of Commerce Howard Lutnick stated:
- This agreement is expected to create $5 billion in new opportunities for US exporters.
- The existing 10% basic tariff will continue to generate $600 million in revenue for the US.
Key Details Revealed! Comprehensive Inclusion of Automobiles, Steel, Aluminum, Aerospace, and Pharmaceuticals
- The UK will export 100,000 cars to the US, paying only a 10% tariff.
- The US will export Rolls-Royce aircraft engines and parts, enjoying tariff exemptions.
- The UK will purchase $10 billion worth of Boeing aircraft, with details disclosed by British Airways.
- Both parties agreed to cooperate on national security certification for the supply chains of pharmaceuticals, steel and aluminum, aircraft, and agricultural products.
Reporters Inquire on Key Issues, Trump Responds One by One
- Regarding the import of US beef and chicken: Trump emphasized that US beef is of the highest quality in the world, and agricultural advisor Rollins stated that negotiations with the UK will continue, based on scientific standards.
- Will Europe also negotiate?: Trump mentioned that the EU is quite unfair to the US, but they are eager to talk, and arrangements will be made separately.
- Trade with China and weekend negotiations: He stated that discussions with China are not just casual greetings, but genuine negotiations, hoping for fair competition in the future.
- Will the 10% tariff become a norm?: Trump responded, “10% is just a starting point,” indicating that tariffs on other unfair trading countries may be higher.
Orders, Investments, and Reforms Together: Trump Claims the US Will Return to Manufacturing Glory
In the latter part of the press conference, Trump emphasized that the US has attracted nearly $10 trillion in investments, particularly focused on the chip and automobile industries. He hinted at further initiatives to launch major infrastructure and aerospace system upgrades, preparing to collaborate with major companies like Raytheon and IBM to create “the world’s most advanced aerospace systems.”
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