Tue, 15 Apr 2025

Tue, 15 Apr 2025 A UK-US deal sounds good but it is all about the detail

British exports have been hit with tariffs by US despite having no trade deficit, but the UK may have some leverage.

* US Vice-President JD Vance says there's a "good chance" of reaching a trade deal with the UK, due to a "much more reciprocal relationship".
* UK business and trade minister Sarah Jones welcomes Vance's comments but declines to provide a timeline on talks.
* The term "deal" being used by both sides is ambiguous, with some speculation that it may not be an extensive free trade agreement covering all goods.
* The US has levied a 10% tax on UK imports as part of its "reciprocal tariffs", but this is not seen as negotiable for individual countries.
* The UK is in a unique position due to its large trade deficit with the US, and may not have much leverage to negotiate.
* The US's actions are also being viewed in the context of post-Brexit reset negotiations between the UK and EU.
* The US may try to use these negotiations to secure British cooperation on containing China.
* The current situation gives the UK more leverage than it did a month ago, with the US potentially being forced to make concessions.
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