Fri, 28 Feb 2025

Fri, 28 Feb 2025 Faisal Islam: US-UK deal is about avoiding tariffs, not trade

A deal to avoid further trade barriers appears very much on the cards, but challenges remain.

* A US-UK trade deal is being negotiated, which aims to insulate the UK from global trade tensions.
* The deal focuses on technology and integrating the UK's tech sector with that of the US.
* Vice President JD Vance will lead the US negotiations, prioritizing the integration of tech sectors.
* The UK's digital services tax may be a point of contention in the talks, as the White House wants to "stop the contagion" of similar taxes imposed by other countries.
* Other issues include: + VAT on imports and exports + Online Safety Act, which US companies claim will restrict freedom of speech + The UK's open economy and potential impact of a wider trade war involving most G7 countries
* The UK government is trying to maintain neutrality in global trade tensions, with the goal of becoming a "Switzerland of global economics".
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