In a new blog post, Cato Institute trade policy expert Colin Grabow argues that the Trump administration’s recently announced U.S.-UK trade deal locks in higher tariffs rather than advancing free trade.
“One hopeful theory behind the Trump administration’s ‘Liberation Day’ tariff increases was that they were a negotiating tool to ultimately produce a more open trade environment,” Grabow writes. “Well, so much for that.”
While the administration calls the deal “historic,” Grabow says it merely restores partial access lost under Trump’s tariff hikes—and leaves a 10% tariff baseline in place. He notes that many of the deal’s promises remain vague or delayed, calling it “an agreement to eventually reach an agreement.”
If you’d like to speak with Grabow about this, please feel free to reach out to esalamon@cato.org
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