US-UK trade deal mainly consists of reversing US tariffs

A US-UK trade deal, even if incomplete, is a welcome development for the UK, a country with a persistent trade deficit in goods. The United States is the UK's largest export market for goods, accounting for 16% of all UK goods exports. Specifically, the US is the top export destination for UK cars and the fourth largest for iron and steel. Therefore, the proposed reduction in US tariffs on cars to 10% and the elimination of tariffs on steel and aluminium are positive for the UK economy. However, a 10% blanket tariff will remain on other UK goods exported to the US. S everal significant issues also remain unresolved, notably regarding pharmaceuticals (the UK's second-largest export commodity to the US), food standards (potentially granting US farmers lower export tariffs to the UK), and the UK's digital tax, which affect s large US tech companies. Overall, while positive, a new US-UK trade deal largely represents a reversal of previously imposed US tariffs, and numerous issues remain outstanding, potentially requiring months of further negotiation. Moreover, as one of the most open economies with a significant financial sector, the UK is highly vulnerable to global risks. Consequently, a 90-day rollback of tariffs between the US and China is possibly as beneficial for the UK economy. While the negative impact on UK GDP growth is likely to be mitigated now , the remaining 10% blanket tariff and reduced global growth prospects still suggest a 0.2 percentage point reduction in UK expansion over the next two to three years compared to a scenario with no tariff increases and greater global economic stability.