The United States and the United Kingdom have announced a new trade agreement in which Britain will expand market access for U.S. products and lower tariff barriers. In return, the U.S. will maintain a basic 10% tariff rate on British imports.
U.S. President Donald Trump declared a 90-day pause on reciprocal tariffs to allow individual nations time to negotiate with Washington. The U.K. was the first to finalize a deal, offering billions of dollars in new market access for U.S. exports—particularly in agriculture. American beef, ethanol, and other farm products will gain broader access, alongside U.S. chemical goods, machinery, and other industrial items. Meanwhile, the U.S. will uphold the 10% reciprocal tariff on all British imports. A quota of 100,000 British-made cars per year will be allowed under the 10% rate; any imports beyond that will face the standard 25% tariff applied to all foreign vehicles.
National Central University’s Research Center for Taiwan Economic Development CEO, Wu Ta-jen (吳大任), said Friday that Trump had clearly secured a major win. He added that the U.K. ends up at a disadvantage and it will be difficult for other countries to secure better terms.
Wu added that India will be an important case to watch. Like Taiwan, India runs a trade surplus with the U.S. Its original reciprocal tariff rate is 27%, slightly lower than Taiwan’s. If India secures a final rate of 20%, Taiwan should be mentally prepared for something above 20%.