UK will break ranks with EU and halt US tariffs over state subsidies – FT

In its latest report, published early Wednesday morning in Asia, the Financial Times (FT) relies on the UK Trade Minister Liz Truss’ latest moves to convey that the
UK government has broken ranks with the EU by disclosing plans to suspend punitive tariffs against the US over aircraft subsidies, in an attempt to pave the way for a post-Brexit trade deal with Washington. 

The news also quotes a British diplomat while saying that the UK wanted to come to a negotiated settlement so we can deepen our trading relationship with the US.

In this response, the European Union (EU) officials mentioned, per the news, that the UK would lose the right to impose the punitive tariffs on the US as of January 1 anyway, given that the sole claimant in the World Trade Organization (WTO) case on Boeing was the EU.

This gives rise to the bloc members’ hint that the US can continue to take action against the UK because Washington launched the Airbus case not only against the EU but also specifically against Spain, the UK, Germany and France.

Market reaction

Although Brexit is a hot topic now, the UK-US trade ties gain a little attention. Even so, GBP/USD ticks up to 1.3360 after the news.