President Trump's much-anticipated announcement on the future of US/UK trade should see tariffs reduced on some products but the full details of the deal have still to be confirmed.
Commenting on the announcement, Chris Fletcher, Policy Director at Greater Manchester Chamber of Commerce, said: "With the style and manner that the announcement was made it is obvious that a great many details are still to emerge about the US/UK Trade Announcement made by President Trump in the Oval Office and the Prime Minister at an automotive plant in the West Midlands. It appears that tariffs are still in place but will be reduced on a number of products, though not it seems below the global baseline of 10% and there will be new opportunities across a range of other goods. With both the main protagonists acknowledging that final details are being signed off it does seem that this will be the first substantive post-tariff trade agreement to be agreed though how beneficial remains to be seen. We will follow up and watch out for more details as they emerge and assess what impact they will have on the wider economy that has seen turmoil over the last few months.
"Earlier in the day the Bank of England announced a Base Rate cut of .25% to 4.25%. Whilst many predicted this some observers are still concerned that this may seem pre-emptive in current economic conditions and a hold may have been preferable with possible future inflation rises. However having said that it will come as a bit of a welcome if maybe temporary relief for many businesses and borrowers who have faced a series of economic shocks and challenges this Spring.
"The economy is still finely balanced and more activity will be needed from government to support UK businesses and help deliver the growth that is expected of them."
The Chamber is holding an Understanding US Tariffs Workshop on 14th May. This half day event is designed to help you navigate the current volatile trade landscape. Book your place here.