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Sent Donald Tump in the Oval Office talking about the trade agreement with the UK. It's a framework and I guess more negotiations over the coming weeks to get an agreement, but wide ranging discussion there on global trade, particularly with United Kingdom and the Kerrent joins us. He's a global economy reporter for Bloomberg News. He's based down in Washington, DC. Hey, and you listen to the president here, it looks like there is a framework for an agreement between the United
States and in the UK. Put this into context. What did you take away?
Well, there are certainly some micro details in it. I mean, for example, on the US side, tariff on steels in the UK going to zero. You have engines and plane parts from Boeing also coming in power free. That's on one side that's clearly a potential boost for those businesses on that side, and then on the UK side, Brittiness Committee to buying ten billion dollars worth of Boeing planes, and there's going to be a coat for allowing US beef thirteen thousand metro tons of the US beef into
the UK. Now as a rinkline that one in terms of food standards is not going to change. That's probably worth keeping any on. So you know, there's clearly some winds there for steel and for autos on the UK side, winds for maybe farmers, and a lift for Boeing on this side and the US side, But you know, you know large it's a long way from a true in
depth trade agreement. There is no change to the ten percent minimum baseline tariff that will go on UK goods coming to the US, and that's noteworthy because if the US isn't willing to drip that for both an economic and a security ally like the UK, then you question whether that would change for anybody. So it's a it's interesting that they got it done. Parts of its significant for the industries and industries involved, but it's not a sweeping Perhaps some of the headlines might suggest.
Talk to us about the the ag part, so the ethanol, the corn, that part of it. I mean, the headline number sounds really good and trade wars hurt farmers. We saw that in the first administration for President Trump. What do you think the takeaway from that will be?
Well, we heard the culture is actually brook Rowlands hailing. It is a big deal for US farmers in particular. And they were chouting for example, and the UK bussor mandleson maket the same point they were chouting disagreement on the beef going in tower free quota of thirteen thousand medicines. That would be interesting that those open up potential new
market access for US farmers, no question. But within that though I mentioned earlier, the food standard part of it isn't changing, so we'll have to see how that impacts in practice, how it impacts in practice terms of how those imports or exports do workouts the UK in terms of walts it out in and what the demand is. But you know, on paper it's it's a concession on the UK side for US farmers.
And thank you so much for your reporting there in the current global economy reporter for Bloomberg News. He's based down there in Washington and DC. Let's go across to London right now, get that point of you. Joe Mays Joints and Serry covers the economy, the UK economies based in our London studios over there. Hey, Joe, you listened to the President speak and the Prime Minister via phone. What's the takeaway over there in London do you think?
Well?
The UK Government is trying to sell this as a major political win for them. They are saying that the particularly the reduction in tariff's on cars on of that one hundred thousand quota down to ten percent. They say that's a big win. And also steel tariffs going from twenty five percent to zero and the same aluminium is also a good news story for steelmakers in the UK.
But nevertheless, there is criticism of this still already from opposition parties, pointing out that the UK is still in a worse position than before Donald Trump became presidents, still with that ten percent tariff on goods, still indeed having that ten percent tariff on cars even under a quota. So yeah, it's a limited victure I think seen in the UK, but that's never less welcome.
How does Prime Minister Cure Starmer sell this to say Europe Like, Hey, I did this deal, but you should also do a deal with me. And this is why when there's going to be some tension there between and say the US and the EU.
Yeah, I think the UK has been quite careful with this agreement with the US not to commit to anything that would materially obstruct them from doing a closer deals economically with the EU. So, for example, on food standards, yes, we do have provision in this agreement for beef more beef imports into the UK from the US, but the UK has said they are maintaining very strict standards on food, for example, which are a key redline for the European Union.
So I think that what's happened here is the UK is still trying to walk this tightrope of economic ties between the USNU and has managed to broadly maintain that here. But it has meant that the scope fumbition for this US deal has had to be limited.
All right, Joe, thanks so much for joining us. I really appreciate getting a couple of minutes of your time. Jomes. He covers a UK economy for Bloomberg News. He's based in our Queen Victoria Street station over there.
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