President Donald Trump announced that the United States and United Kingdom have reached an agreement on a 10% baseline tariff, and countries that have trade surpluses will face higher tariffs.

Taiwan • Politics • 05/08 18:00
President Donald Trump announced that the United States and United Kingdom have reached an agreement on a 10% baseline tariff, and countries that have trade surpluses will face higher tariffs.

On May 8, 2025, President Trump of the United States announced at the White House that he had reached a trade agreement with the United Kingdom, establishing a 10% baseline tariff that covers sectors like automobiles, steel and aluminum, and agriculture. The UK secured a preferential 10% tax rate, but Trump warned that countries with trade surpluses would face higher tariffs. This policy marks a shift in U.S. trade policy, signaling a clear change to global trade partners.

Key Updates

11h ago

President Trump of the United States Launches 2025 Trade Negotiations: with Taiwan, Japan, and South Korea Involved, US-China Tariff Talks Show Progress

In May 2025, the Trump administration initiated a new round of trade negotiations, planning to conduct bilateral talks with about 20 countries, including Taiwan, Japan, and South Korea, with the goal of achieving preliminary results by the end of the year. The negotiations involve both major economies and smaller trade partners, aiming to create a model for future trade agreements. Trump is also considering lowering the punitive tariffs, which are as high as 145%, on China, suggesting there may be room for negotiation in the US-China trade war. Senior US and Chinese officials held talks in Geneva on May 10, marking the first significant trade talks since Trump assumed office.

16h ago

Trump criticized U.S. Federal Reserve Chair Jerome Powell for his conservative policies and is considering nominating Walsh to succeed him.

On May 10, 2025, former President of the United States, Trump, criticized Federal Reserve Chair Powell for his conservative approach to interest rate policy, calling him "behind the times" and suggesting that if he were to return to the White House, he would consider nominating former Federal Reserve Governor Walsh to take over as chair. Walsh has recently criticized Federal Reserve policies in public, opposing the idea of "sacrificing jobs to control inflation." This potential personnel change has drawn attention to the future direction of the Federal Reserve.

16h ago

The Trump administration launches new trade negotiations: 20 countries' tariff strategies, divergence in Fed's inflation policy, and Mexico's lawsuit against Google

In May 2025, the Trump Administration initiated a new round of trade negotiations, focusing on approximately 20 economies and establishing a 10% minimum tariff floor. U.S.-China relations are still stuck in a high-tariff stalemate, with both parties set to meet in Geneva. The Federal Reserve is experiencing a division over inflation control strategies, with Chairman Powell emphasizing the importance of observing economic trends before making any decisions. Mexico sued Google for labeling the "Gulf of Mexico" as the "American Gulf" on Google Maps, alleging it of ignoring multiple requests and causing diplomatic tensions following a U.S. congressional resolution.

19h ago

On the eve of US-China trade talks, Trump proposes an 80% tariff reduction, while the White House insists on concessions from both sides.

Senior officials from the US and China will meet in Geneva, Switzerland, from May 10 to 11 to discuss tariffs, rare earth export restrictions, and issues related to fentanyl. President Trump proposed reducing tariffs on Chinese goods from as high as 145% to 80%, but the White House emphasized that tariffs will not be lowered unilaterally unless China makes concessions. The talks will be led by US Treasury Secretary Mnuchin and Chinese Vice Premier He Lifeng. Meanwhile, the US and the UK have reached a limited trade agreement, maintaining a 10% baseline tariff, highlighting the Trump administration's push for reciprocal tariff policies.

20h ago

Federal Reserve Board Member Waller Defends the Federal Reserve's Independence: Trump's Criticism Sparks Concerns, Supreme Court to Review Case on Presidential Dismissal Powers

On May 9, 2025, Federal Reserve Governor Christopher Waller emphasized the importance of the Fed's independence for economic stability at the Hoover Institution at Stanford University. Meanwhile, former President Trump had repeatedly criticized the Fed and Chairman Powell, sparking concerns over political interference. The U.S. Supreme Court is currently hearing a case regarding the president's ability to dismiss officials from independent agencies, which could affect the Fed's institutional framework.

05/08 18:00

President Donald Trump announced that the United States and United Kingdom have reached an agreement on a 10% baseline tariff, and countries that have trade surpluses will face higher tariffs.

On May 8, 2025, President Trump of the United States announced at the White House that he had reached a trade agreement with the United Kingdom, establishing a 10% baseline tariff that covers sectors like automobiles, steel and aluminum, and agriculture. The UK secured a preferential 10% tax rate, but Trump warned that countries with trade surpluses would face higher tariffs. This policy marks a shift in U.S. trade policy, signaling a clear change to global trade partners.

05/08 14:01

Trump criticized Federal Reserve Chair Jerome Powell and denied any plans to remove him from his position; collaboration with Elon Musk on an automated employee layoff system sparked controversy involving 260,000 federal employees.

On May 8, 2025, President Trump of the United States criticized Federal Reserve Chair Powell for not cutting interest rates, calling him a "dummy," but denied any plans to remove him from his position. The Trump administration, in partnership with Elon Musk, launched an automated layoff system, leading to 260,000 federal employees either resigning or being laid off, sparking controversy and legal challenges. This system was tested in the Department of Veterans Affairs and the IRS, saving $160 billion in the budget, but faced lawsuits from multiple state attorneys general and labor unions questioning its legality.

05/08 06:00

The U.S. White House plans to set up a sovereign wealth fund, with the Treasury and Commerce Departments submitting a draft plan.

On May 8, 2025, a White House spokesperson confirmed that the U.S. Department of the Treasury and the Department of Commerce, following President Trump's directive, are drafting preliminary plans to establish a sovereign wealth fund. The aim is to enhance the economy and security by liquidating government assets and utilizing tariff revenues. Although the plan is not finalized, the policy has sparked discussions in Washington D.C., becoming central to the Trump administration's economic strategy. The White House has expressed reservations about certain aspects of the draft, and the sources of funding and the fund's structure are still being deliberated.

05/08 03:04

President Trump of the United States announced that a global tariff policy will be developed within two weeks, and the initial trade agreement will soon be unveiled.

On May 6, 2025, President Trump of the United States announced that he would meet with senior cabinet members within two weeks to discuss specific tariff rates on imported goods from various countries, emphasizing that the United States would take the lead in setting tariffs. Trump announced that on May 8, he would reveal at the White House the first country to reach a tariff agreement with the United States, with speculation that it might be India. The Trump administration continues to impose a high tariff of 145% on China and has set import tariffs on chips ranging from 10% to 25%.

05/08 02:32

U.S. President Trump announced the first-ever U.S.-India trade agreement: India has agreed to eliminate tariffs on U.S. goods.

On May 8, 2025, President Trump announced from the White House that the United States reached its first tariff agreement with India, where India agreed to eliminate import tariffs on American goods. The agreement covers steel, auto parts, and pharmaceuticals, and is based on the principle of reciprocity, allowing the U.S. to export specific products to India without tariffs. This marks the first concrete agreement since the Trump administration initiated its new tariff policy on April 2, signifying a major turning point in U.S.-India trade relations.

Detailed Explanation of the US-UK Agreement: 10% Base Tariff Rate and Sector Exemptions

At a press conference held in the Oval Office, President Trump and US Secretary of Commerce Howard Lutnick jointly announced that the US and UK have reached a consensus on a trade agreement covering cooperation in automobiles, steel and aluminum, agriculture, and advanced technology. According to the agreement, the US will maintain a 10% base tariff on UK goods and remove the previous import tax of up to 25% on UK steel and aluminum products.

In the automotive sector, the US will reduce the tariff on UK cars from 27.5% to 10%, applicable to an annual quota of up to 100,000 vehicles, which nearly covers the total UK car exports to the US in 2024. Additionally, Rolls-Royce aircraft engines and parts exported from the UK to the US will enjoy tax-free treatment.

In the agricultural field, the UK agreed to open its market to allow imports of US beef and ethanol, providing a duty-free quota of 13,000 tons for beef. The US, in turn, promised to simplify customs clearance processes for UK goods to enhance import efficiency.

Trump States: 10% is Just the Baseline, Countries with Trade Surpluses Will Face Higher Rates

Although the UK received a 10% base tariff rate, Trump emphasized at the press conference that this does not mean other countries will enjoy the same conditions. He stated, "10% is a very low number, and some countries will not get such favorable terms." Trump specifically mentioned that countries with significant trade surpluses with the US will face tariffs "far above this level."

According to data from the US Trade Representative (USTR), the Trump administration has set higher tariff brackets for 57 countries, with rates ranging from 11% to 50%. China is listed as an exception, with its exports to the US currently facing tariffs as high as 145%, the highest among all countries.

Trump posted on Truth Social, stating, "If you respect the US and present serious proposals, the US is open to business. More agreements are coming—stay tuned."

Strategy and Target Countries Behind Tariff Restructuring

Trump's tariff restructuring policy centers on the "principle of reciprocity," aiming to force trade surplus countries to renegotiate and reach agreements more favorable to the US. Currently, the US is negotiating with major trade partners such as China, Japan, and India. According to the Trump administration, these countries have long imposed high tariffs and non-tariff barriers on US goods, putting the US at a disadvantage in bilateral trade.

For example, Chinese goods currently face a 145% US tariff, while China imposes a 125% retaliatory tariff on US goods. Trump stated that these measures are intended to "force China to open its market, allowing US companies to compete fairly in China."

Additionally, the EU is also listed as a potential high-tariff target. According to EU statistics, the EU's total exports to the US in 2024 amounted to 531.6 billion euros, with a trade surplus of 198.2 billion euros. The Trump administration has launched investigations into EU cars, aircraft, agricultural products, and other goods, warning that if negotiations break down, higher tariffs will be imposed.

Differential Treatment and "Non-Template" Policy Stance

In multiple public statements, Trump emphasized that the 10% tariff rate granted to the UK is based on a "mutual respect" bilateral relationship and is not a standard template for future agreements. He noted, "The UK has always respected us, and they made a good deal." This strategy of differential treatment indicates that the Trump administration will flexibly adjust tariff levels based on each country's trade relationship and negotiation performance with the US.

According to the policy framework proposed by the "Miran Report," Trump's tariff strategy features four characteristics: phased, adaptive, graded, and secure. The report suggests implementing differential tariffs on different countries and products, with dynamic adjustments based on their trade behavior and national security stance.

Symbolic Significance of the US-UK Agreement and Subsequent Negotiations

The US-UK agreement, described by Trump as a "historic agreement," is not only the first formal trade agreement since his second term but is also seen as a demonstration case for other trade partners. US Secretary of Commerce Lutnick stated that the agreement will create $5 billion in new market opportunities for US exporters and bring $6 billion in tariff revenue to the US.

UK Prime Minister Starmer, who participated in the press conference via phone, stated that the agreement will "preserve jobs, create new positions, and strengthen the historical alliance between the two countries." The UK Ambassador to the US, Mandelson, also noted, "We are better together than apart."

Although the agreement has yet to cover sensitive issues such as digital taxes and technology cooperation, both parties have agreed to commence subsequent negotiations, covering advanced technology fields such as quantum computing, nuclear fusion, and aerospace.

References

People Also Ask...

faq

How will Trump's current tariff policy affect global trade, particularly concerning its impact on China and the EU?

faq

How is Trump's tariff policy this time going to affect the investment environment in the United States?

faq

Will Trump's tariff policy have any effect on our local imports and exports?