[Source / Observer Network by Ruan Jiaqi]

In an urgent attempt to stabilize market confidence, the United States announced this week with great fanfare that it had signed what was called the "first tariff trade agreement" with the UK. However, behind its grandiose publicity, there was a fact being concealed: this so-called "agreement" was actually only a framework document, no substantive documents had been signed between both parties, and specific details were far from settled. Despite this, the White House still regarded this agreement as a "victory fruit", and attempted to use the "maintenance of 10% tariffs on imports from the UK" as an example to set rules for other countries negotiating trade agreements.

According to reports by Bloomberg and CNBC on the 10th, on Friday (9th) night, when answering reporters' questions in the Oval Office of the White House, Trump claimed that for other countries hoping to reach trade agreements with the U.S., the trade agreement with the UK would very likely become a "model".

Based on comprehensive reports from British media, although some concessions were made regarding tariffs on imported UK cars, steel, and aluminum, most U.S. imports from the UK still maintained a benchmark tariff rate of 10%.

Based on this, Trump stated that regardless of what kind of trade agreement other countries reached with the U.S., they would still face a benchmark tariff of 10%.

When asked if countries implementing zero tariffs could receive "equivalent treatment," he replied, "There will always be a benchmark."

"What I mean is that there may be exceptions at certain times. We will wait and see. Sometimes, certain countries do special things for us, (in which case it would be different)," he added, "but basically, the minimum benchmark tariff is 10%. Some tariffs will far exceed this level, reaching 40%, 50%, or even 60%."

"We closed a great deal yesterday," Trump then said, adding that he expected to reach another "four or five" trade deals "very soon."

On May 9th local time, Trump attended a press conference in the White House office. CNBC video screenshot.

The upcoming Sino-American trade talks this week in Switzerland also became a focal point at the press conference. When asked if he would feel disappointed if the results of this contact did not meet expectations, Trump feigned nonchalance, denied it outright, and repeatedly emphasized that "we have already completed a great (U.S.-UK) agreement," attempting to save face.

Since the news broke on Thursday about the "first trade agreement between the UK and the US," the entire White House has portrayed it as a supposed "major victory" under the Trump administration.

According to reports by U.S. and British media, the content of this agreement includes that the tariff on the first 100,000 vehicles exported annually from the UK to the U.S. will be reduced to 10%, while those exceeding this amount will still be taxed at 25%. Steel and aluminum products from the UK, which account for only 3.2% of the U.S. market, have been exempted from tariffs, but the so-called "reciprocal tariff" of 10% still covers most UK goods.

From the media's analysis, the UK made greater concessions. In exchange, the UK agreed to eliminate non-tariff barriers and allow zero-tariff access for U.S. beef, ethanol, grains, and other agricultural products, while UK agricultural products enjoy zero-tariff treatment within specific quotas. At the same time, tariffs on Boeing aircraft engines were canceled, and orders worth $10 billion for aircraft purchases were facilitated. The Financial Times also mentioned that the UK even considered canceling its digital services tax, which brings in 800 million pounds annually.

Early on the morning of the 8th, Trump posted on social media. He wrote, "Today is a very important and exciting day for the U.S. and the UK. This agreement with the UK is comprehensive and extensive, and will consolidate the relationship between the U.S. and the UK for many years to come."

However, according to BBC reports, the UK government declined to comment on Trump's statement. CNN reported that Trump's announcement surprised some UK officials, who believed that although progress had been made in recent weeks of negotiations, they had not reached the stage for an agreement.

That day, Trump also posted a chart on social media, summarizing its content as follows: the U.S. won big. He claimed that the UK's tariffs on U.S. imports would drop from 5.1% to 1.8%, and new UK market access and U.S. tariff revenues would skyrocket by fifty to sixty billion dollars. But CNBC noted that it was unclear how these data were calculated.

Different from Trump's extravagant boasting, analysts expressed cautious attitudes, suggesting not to expect too much because what Trump referred to was a "trade deal" (trade deal), not a "trade agreement" (trade agreement), and there is a fundamental difference between the two.

The New York Times also pointed out that the trade agreement reached between the U.S. and the UK looked more like a "framework agreement" rather than a traditional substantial free trade agreement, with limited practical effects.

No substantive documents were signed by both countries on the 8th. Trump admitted that the final details of the U.S.-UK agreement had yet to be finalized. Starrer also stated that the details of the agreement still needed to be "finalized."

Even so, the White House continued to hype up the situation. According to CNBC reports, on Friday morning, Kevin Hassett, director of the National Economic Council, leaked that he had "heard approximately 24 reports of impending agreements," and predicted that South Korea, India, and other countries would be the next signatories.

He continued to boast about how these agreements would "benefit the U.S.", attempting to reassure the market. He solemnly stated, "This will be very reassuring for the market because they will know what the rules are. They will see that these rules benefit U.S. producers and U.S. workers, and they will not cause serious disruptions as some Wall Street companies have claimed in the past one or two months."

This article is an exclusive contribution from the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7502645780756120074/

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