Name: What’s Coming For UK is Worse Than 1929 Depression, It Will Last For Decades
Uploaded: 2025-08-07T18:24:53.000Z
Duration: 16 min 33 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

The United States and the United Kingdom just signed a trade deal and it's a complete disaster for the British economy.

Gerund

The British economy has been stagnating for the last 18 years, the cost of living is out of hands and millionaires leaving the United Kingdom in unprecedented level and the British economy is already suffering.

Future simple

And this trade deal is a complete humiliation for the entire United Kingdom and it's going to send the UK into a complete disaster, maybe it will stagnate for another 18 years.

So here in this video, I want to explain why this trade deal is a complete disaster for the British economy, what exactly this trade deal is and how will it will impact the entire British economy.

If you are ready, give this video a thumbs up and let's get right into it.

If you look at the trading partners of the United States, you see a problem with the There is no problem with the United Kingdom because the United Kingdom buys from the United States as much as it sells to the United States.

So there is literally no any kind of trade deficit between the UK and the US.

Maybe some years there is a small tiny trade deficit, but it's absolutely nothing and it's absolutely normal between the two countries.

So if you want to solve your trade deficit, you clearly solve it with Canada, Mexico, China, but not with the United Kingdom that has been doing it fairly with the United States.

Last year, the United Kingdom exported to the United States around 60 billion dollars worth of goods.

On the other side, they imported from the United States around 57 billion dollars worth of goods.

So there is a trade deficit of around 2 billion dollars.

And 2 billion dollars is frankly speaking is nothing because we are talking about hundreds of billions of dollars.

Sometimes the United States buys from the UK a bit more, other years the UK buys from the United States a bit more.

So that number fluctuates year by year and that's absolutely normal.

When there is a consistent trade deficit of hundreds of billions of dollars, such as the case with China, I see a problem over here, but not here.

Basically what happened, you can say that Donald Trump created a problem out of thin air that did not exist at all, put the British economy in a very vulnerable situation and then signed with them a trade deal that is very bad for the British economy.

Now some people might say that, well, the UK sells to the US much more services than the US sells to the UK.

If you look at the numbers, in 2023, the UK exported 118 billion dollars worth of services to the United States.

On the other side, they imported around 54 billion dollars.

I got you, I told you, there must be something, but you know what?

If you have been listening very carefully to Donald Trump, he made it clear, he is not talking about services.

His entire argument about the trade deficit that the United States has with the rest of the world is about physical products and not services.

And if you listen to him, he talked about that consistently.

Because if you actually take a look at the services, then the entire argument that Donald Trump is making makes absolutely no sense.

Last year, the United States exported around a trillion dollars worth of services, however, it imported around 750 billion dollars worth of services.

So the United States is actually running a huge surplus when it comes to services.

And that's why you never heard Donald Trump talking about the surplus that the United States has with the rest of the world when it comes to services.

The entire British economy is based on services and there isn't much things that the United Kingdom is physically producing.

That's why they are more focused on exporting services, just like the United States is focused on services.

But because the United States is much bigger than the United Kingdom, it got a population that is like 5-7 times bigger than the United Kingdom, it is physically and geographically much bigger, they can produce cars, the United States can produce a lot of things.

Well, the United Kingdom cannot afford that, especially in this age when we have competition from China and Southeast Asia, where they can manufacture those things at a fraction of the price.

So I would assume that this was not part of the negotiation with the United States, but I guess they used it against the United Kingdom.

They said that maybe if you guys talk too much and you don't sign this agreement that is favorable to the United States, then we're going to impose tariffs on the British services.

And that would have actually pushed a lot of British banks, a lot of British insurance companies and auditing companies into a complete disaster.

So what exactly is this deal that the UK and the US signed?

Now first of all, the 10% tariffs on all British goods are staying.

So there is a 10% baseline tariff that the United States imposed and it's not going anywhere and the United Kingdom is going to pay that 10% tariff if it exports anything to the United States.

So part of me does not understand what exactly has happened.

There was no trade imbalance between the two countries and yet the United Kingdom still has to pay the 10% tariff.

But will the United States pay a 10% tariff by exporting their products to the United Kingdom?

Who do you think this deal is benefiting?

Because if you look at the rest of the deal, you will be shocked how bad this deal is for the United Kingdom and how good this deal is for the United States.

The only good news is that they brought the tariffs on cars to around 10% on 100,000 cars that will be exported from the United Kingdom into the United States.

So first of all, there was a 2.5% tariff before Trump took in office.

Trump raised that tariff to 27.5% and then in the negotiations, he brought it down to 10%.

That is a complete disaster for the entire auto industry for the United Kingdom.

Because now those Range Rovers, those Jaguars will be taxed at least 10%.

So if the United Kingdom will import or export more than 100,000 cars to the United States, guess what?

They will pay a 27.5% tariff on every single car that will enter the United States.

And how many cars did the UK export to the United States?

So the first 100,000 cars will be taxed at 10%.

The other 40,000 cars will be taxed at around 27.5%.

And that limits the entire auto industry of the UK.

Because if they start producing much more cars, they will have to increase their prices by at least 27.5%.

Or they will come up with a completely different strategy.

And that strategy could be, why not simply move manufacturing outside the United Kingdom to the United States?

At least for the cars that will be selling in the United States.

First of all, we can produce as many cars as we want.

Secondly, we will also avoid the 10% tariff that everybody has to pay, including the United Kingdom.

So don't be surprised if Jaguar and Range Rover will shift manufacturing.

And that means that jobs will go out of the United Kingdom.

That means that economic activity gets out of the United Kingdom.

And that means economic stagnation for the United Kingdom.

And that also means that less taxes will be flowing to the British budget.

Suppose the United Kingdom will produce steel and aluminium and they can export it to the United States at 0% tariff.

This is supposed to be the golden crown of this deal for the United Kingdom.

How much steel and aluminium does the United Kingdom produces?

The entire steel and aluminium industry of the United Kingdom is collapsing and it's barely surviving.

This zero tariff rate between the two countries applies to both countries.

Now, the United States right now has the capacity to boost its steel and aluminium industry, which means that they will start selling massively steel and aluminium to the United Kingdom.

And that means that the UK will depend on the United States for steel and aluminium and the US steel and aluminium companies will pay 0% in tariff by exporting that to the United Kingdom.

Now, do you think the United Kingdom will solve its problem with the steel and aluminium industry?

Well, absolutely not, because they have much bigger problems than the steel and aluminium industry.

So, the steel and aluminium industry in the UK is going to entirely disappear over the next 3 to 5 years.

It was already almost non-existing and now it will simply disappear and the United Kingdom will just more depend on the United States.

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What’s Coming For UK is Worse Than 1929 Depression, It Will Last For Decades

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