US and UK close to trade agreement – report

The FT reports that the US and UK are close to a trade agreement that would lower UK quotas on cars and steel.

• The agreement would include lower-tariff quotas for UK steel and car exports to the US
• The UK is hoping to secure reductions in the sector specific 25% tariffs that Trump has levied on steel and autos
• The UK’s concessions include changes to digital services tax, cuts on US auto export tariffs, and reduced tariffs on US agricultural products
• The UK refuses to accept US food production standards like chlorine-washed chicken
• UK industries, especially luxury car brands like Bentley and Jaguar Land Rover, are facing “severe” impacts from the current tariffs

This report is short on the critical question: What tariffs will the US continue to charge the UK? The UK overall is facing a 10% rate but also 25% of autos and steel. This appears to deal with only the latter two but it’s short on details.

It looked last week like a deal with India was coming but now it looks like the UK could be first out of the gate.

This article was written by Adam Button at www.forexlive.com.