Washington, May 8 (AP) President Donald Trump agreed on Thursday to cut tariffs on UK autos, steel and aluminum in a planned trade deal but played down the possibility of other nations getting similarly favourable terms on his import taxes, which are roiling the global economy.

Under the framework agreement, the United Kingdom is to buy more American beef and ethanol and streamline its customs process for goods from the United States.

But Trump's baseline 10 per cent tariffs against British goods are to stay in place, and the Republican president suggested that even higher import taxes would be charged on other countries trying to reach deals with the US.

“That's a low number,” Trump said of the UK's 10 per cent tariff rate, adding that other countries would face higher tariff rates in their deals because the US runs trade deficits with them and “in many cases they didn't treat us right.” The announcement provided a political victory for UK Prime Minister Keir Starmer and offered a degree of validation for Trump's claims that his turbulent approach on trade may be able to rebalance the global economy on his preferred terms. But it also could temper the expectations of the European Union and others negotiating with the US in hopes of mutually slashing tariffs to zero.

The US president talked up the framework to reporters in the Oval Office, although the fine print remains in flux despite his prior statements that a full agreement had been signed “In the coming weeks, we'll have it all very conclusive,” Trump said.

The president said that the agreement would lead to more beef and ethanol exports to the UK, and streamline the processing of US goods through customs. Commerce Secretary Howard Lutnick said that the baseline 10 per cent tariffs would stay in place and that an unspecified British company would be announcing the purchase of USD 10 billion in aircraft from Boeing.

UK officials said that Trump's auto tariffs would go from 27.5 per cent to 10 per cent on a quota of 100,000 vehicles and the import taxes on steel and aluminum would go from 25 per cent to zero. Starmer said Britain would preserve its health and safety standards on food products.

The UK government also said it would also reduce tariffs on 2,500 US products such as olive oil, wine and sports equipment, bringing down the average tariff rate 1.8 per cent.

Starmer, speaking over the phone to Trump while reporters listened in, stressed the importance of the relationship between the two countries as the anniversary of the World War II victory in Europe was being commemorated.

“To be able to announce this great deal, on the same day 80 years forward, almost at the same hour,” Startmer said, “I think is incredibly important and makes this truly historic.” Starmer later spoke to workers at a Jaguar Land Rover plant and promoted the deal, which he said would protect thousands of auto jobs. He told the workers that “this is just the start,” saying “we are hammering out further details to reduce barriers to trade with the United States and across the world.” While celebrating the planned deal, Trump talked up the US economy's future despite worrisome signs of a possible slowdown and increase in inflation that could hurt most Americans' financial well-being and lead to layoffs.

The president said the public should buy into the stock market because the US was about to go up like a “rocket ship," even as he dismissed reports of fewer container ships docking in the US and companies warning of price increases if the tariffs remain.

Trump said that fewer container ships arriving from China meant “we lose less money” from the trade deficit, even though the goods in those ships are used by US manufacturers and sold by retailers in ways that can support jobs while holding down prices.

Asked about companies saying they would need to raise prices because of the tariffs, Trump said, “I think they're saying that just to try and negotiate deals with me.” Trump suggested that he might put 100 per cent tariffs on Mattel toys if they don't relocate their factories to the United States.

Trump has maintained that there is “virtually” no inflation. The Federal Reserve's preferred inflation measure has increased at 2.3 per cent annually, slightly higher than the central bank's 2 per cent target.

The US president on Thursday said that Fed Chair Jerome Powell should cut the Fed's benchmark interest rates that are designed to manage inflation, saying that Powell was holding the Fed's rates at current levels instead of slashing them because “he's not in love with me.” Powell warned at a Wednesday news conference that the tariffs were creating uncertainty and the Fed could afford to wait until more data shows the impacts on the economy.

The US already runs a trade surplus with the UK, making it a bit easier to find common ground at a time when Trump has staked his tariffs on eliminating the annual trade deficits with multiple nations he says have taken advantage of the US.

No new deals have been reached with America's largest trading partners, including Canada, Mexico and China. Trump has left the highest tariffs in place on China, sparking a confrontation between the world's two biggest economies. Washington and Beijing are sending officials to Switzerland this weekend for an initial round of trade talks.

The US and the UK have been aiming to strike a bilateral trade agreement since the British people voted in 2016 to leave the European Union, allowing the country to negotiate independently of the rest of the continent. Then-Prime Minister Boris Johnson touted a future deal with the US as an incentive for Brexit.

Negotiations started in 2020, during Trump's first term. But the talks made little progress under President Joe Biden, a Democrat and a critic of Brexit. Negotiations resumed after Trump returned to office in January and intensified in recent weeks.

The US ran a USD 11.9 billion trade surplus in goods with the UK last year, according to the Census Bureau. The USD 68 billion in goods that the US imported from the UK last year accounted for just 2 per cent of all goods imported into the country.

Still, the US is far more important for the UK economy. It was Britain's biggest trading partner last year, according to government statistics, though the bulk of Britain's exports to the US are services rather than goods.

A trade deal with the US is one of several that Starmer's government is seeking to strike. On Tuesday, Britain and India announced a trade agreement after three years of negotiations. The UK is also trying to lift some of the barriers to trade with the EU imposed when Britain left the bloc in 2020. (AP) GRS GRS