Britain Hopes to Avoid US Tariffs Thanks to Surpluses and Services  

British and American flags are seen in Los Angeles, California, US, May 15, 2018. (Reuters)
British and American flags are seen in Los Angeles, California, US, May 15, 2018. (Reuters)
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Britain Hopes to Avoid US Tariffs Thanks to Surpluses and Services  

British and American flags are seen in Los Angeles, California, US, May 15, 2018. (Reuters)
British and American flags are seen in Los Angeles, California, US, May 15, 2018. (Reuters)

Britain and the United States trade hundreds of billions of dollars' worth of goods and services annually, but London hopes that ambiguities in the data will help to earn it an exclusion from US President Donald Trump’s sweeping tariff plans.

Unusually, both countries report trade surpluses with each other owing to differences in the way they measure trade - something that British Prime Minister Keir Starmer hopes will work to his advantage, according to Reuters.

Trump said on Sunday that he thought something could be “worked out” with Britain on the threat of tariffs.

Here are the facts and figures on trade between Britain and the United States.

How much do the UK and US trade?

Imports and exports of goods and services between Britain and the US totaled $317 billion in 2023, according to the US Bureau of Economic Analysis (BEA), which puts Britain in fifth place as a US trade partner after Canada, Mexico, China and Germany.

The United States is Britain's single biggest national trade partner, although the UK trades far more with the 27 members of the European Union as a bloc.

What do they trade?

British data show services now account for the bulk of the UK's transatlantic trade. Services fall outside of the kind of tariffs that Trump is planning to exact on goods trade with other countries.

Britain's Office for National Statistics (ONS) says “other business services” - which includes the professional services industry such as accountants and law firms - are Britain's top export to the US, far outweighing sales of capital goods.

In return, the US BEA paints a very different picture. It says capital goods, excluding cars, are the United States' top import from Britain.

Differences in the way the two statistics agencies measure trade help explain the discrepancy, known by statisticians as asymmetries.

How can the UK and US both report trade surpluses?

Britain reported a 71.1 billion-pound ($88.24 billion) trade surplus with the US in the year to the third quarter of 2024, while the BEA says the US had a $15.1 billion surplus over the same period.

Both countries adhere to the latest International Monetary Fund standards for measuring trade, but the ONS said last month that the two statistics agencies were implementing them at different speeds.

That affects the measurement of services trade especially, where small differences in definitions can produce big differences in the data.

For instance, in 2020 the ONS said differences in the way it measures financial market trades and services offered by financial institutions contributed to an identifiable 10 billion-pound ($12.41 billion) gap with the BEA data.

What are the politics?

Trump said on Sunday that although Britain was “out of line” when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: “I think that one can be worked out.”

He added that Starmer had been “very nice.”

Last month, British finance minister Rachel Reeves stressed that Britain runs a trade deficit with the United States, at odds with the findings of the ONS.

The BEA data show that the US runs a trade surplus for both goods and services.



Saudi Arabia Unveils Pavilion at International Defense Exhibition and Conference in UAE

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
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Saudi Arabia Unveils Pavilion at International Defense Exhibition and Conference in UAE

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)

The activities of the Saudi pavilion, organized by the General Authority for Military Industries (GAMI), kicked off on Monday at the International Defense Exhibition and Conference "IDEX 2025" in Abu Dhabi. This event is being held under the patronage of Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates.

Governor of GAMI Eng. Ahmad Abdulaziz Al-Ohali participated in the launch, in the presence of Lt.-Gen. Mohammad Bin Abdulrahman bin Hamed Al-Gharibi, Chief of Staff of the Royal Saudi Naval Forces, Sultan bin Abdullah Al-Angari, Saudi ambassador to the UAE, and a number of officials, international investors and decision-makers in the sector.

Al-Ohali emphasized the significance of the Kingdom's participation in IDEX 2025 as a leading global platform for showcasing the latest military technologies.

He underscored the importance of establishing international partnerships that enhance the Kingdom's defense and security capabilities.

The Saudi pavilion serves as a strategic window that reaffirms the Kingdom's commitment to developing its defense sector and strengthening national competencies, contributing to the ambitious goal of localizing over 50% of military spending by 2030, he added.

During the exhibition, GAMI signed a cooperation agreement in the field of government quality assurance with the Defense Acquisition Program Administration in South Korea.

The agreement aims to boost the assurance and reliability of defense products and services carried out under purchasing and acquisition operations, in accordance with the local laws and regulations of both sides.

The agreement reflects the mutual desire of both parties to deepen joint cooperation in the field of defense industry and technology, in a way that achieves the national interests of both countries. The two parties also intend to expand the scope of cooperation by exchanging experiences and best practices in the field of government quality assurance for defense products and services.

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030.

It is presenting the latest locally developed defense technologies across military, defense, and security industries. It features a variety of military products aimed at highlighting the capabilities of the defense and military sectors. Additionally, it presents investors with a conducive investment environment and the promising opportunities available in the sector.

In addition to GAMI and the General Authority for Defense Development (GADD), the pavilion includes the World Defense Show (WDS), along with several national companies operating in the military industries sector. The companies include the Saudi Arabian Military Industries (SAMI), the National Company for Mechanical Systems (NCMS), the Middle East Propulsion Company (MEPC), the Saudi Chemical Company Holding (SCCH), AlKorayef Group, Life Shield Military Industries (LIFE SHIELD), Emaan International, QUDRA Industrial Company, and the Saudi Company for Aircraft Maintenance and Preparation (GDC).