TARIFFS: Navarro And Hassett Say UK Trade Deal Will Act As Template

US President Donald Trump’s senior trade advisor, Peter Navarro, told Bloomberg TV that the UK trade deal is “significant not just as a deal but a template for future deals.” 

• White House NEC Director Kevin Hassett noted to CNBC similarly the deal is a “framework for future deals”, although Axios points out that upcoming negotiations must overcome "deeper mutual hostility, bigger trade imbalances, and more complex disputes” than the UK.
• Navarro said on issues facing negotiations: “India has the highest tariffs of any of our major trading partners… Japan is the most clever at protecting its own markets… Germany has auto tariffs at 10% where we have them at 2.5%. They also have the VAT tax which acts as another 19% tariff and export subsidies.”
• Navarro revealed that the Trump administration is looking at “four of five verticals” with partners: Tariffs, non-tariff barriers, digital taxes and the various kinds of cheating like dumping and currency manipulation. He notes that non-tariff barriers are the bigger problem, specifically referencing the EU’s VAT.
• MNI noted in today's US Daily Brief that USTR Jamieson Greer's statement on the UK deal expressed disappointment that London was unwilling to "address its discriminatory Digital Services Tax", a clear sign that non-tariff barriers will be sticky.
• Navarro refused to be drawn on potential results from tomorrow's US-China talks in Geneva: “Let’s see what happens tomorrow. It will be an interesting weekend for the markets.”
• Note: Navarro will not be part of the US Geneva delegation, which will be led by Greer and Treasury Secretary Scott Bessent.