I appreciate it. Oh, careful. Thank you, sir. We appreciate your time.
Yeah, yeah. I just make a -- make a quick statement. I'd like to ahead of time during questions. Um, it's a great day, not just for America, the world. It's -- it's, um, an interesting uh, coincidence that, uh, on the same day, uh, as you have, uh, VE day, the 80th anniversary of Victory in Europe, uh, we have struck a deal with the same country that we were arm in arm with defeating the Nazis, uh, and walking, uh, and turning that continent into a free continent 80 years ago; from Liberation Day now to VE day.
What's important about this deal, uh, is that it offers a template for how we're going to proceed with the rest of the negotiations. The way the negotiations are structured, we have the head of that. Uh, USTR, Jamison Greer, working, uh, arm in arm with the Commerce Secretary, Howard Lutnick, and they work from, uh, a number of verticals.
Every country, um, is like fingerprints. They're all different in the way they take advantage of America. So, with each country, you have to walk through, uh, what, what are the -- how high are their tariffs? Where are their tariffs high? How can we get those down? Uh, the non-tariff barriers are much more important, uh, in terms of getting a fair deal for America, uh, than the tariffs in most cases.
And this is an important thing for the American people to understand. It's like this is not a tariff problem, it's a -- it's an unfair trade problem. So, there's that. There's the digital, uh, trade issue and then there's a whole issue, all sets of issues in currency manipulation, intellectual property theft, uh, and things like that.
So, with the UK this deal, um, is good for both countries. That's the way it's set up. Um, he -- um, there's joy in farmland today. We have, um, it's a -- it's about an $8 billion gain for the agricultural community. We've got, um, beef. We're going to export substantially more beef, so Kansas, Nebraska, Texas.
You're going to do very well. Uh, we've got dairy. So, folks in Wisconsin and California are really happy. We've got, uh, a lot of corn that we're going to sell via ethanol to the UK. So, the folks in Iowa are very happy. Uh, with respect to autos, we've given the, uh, UK a discount on the auto tariff. They send us, uh, a relatively small amount of vehicles in the broader scheme of things, but to them, it's an important part of their economy.
So, we're reducing, uh, the 25 percent tariff down to 10 percent on the -- on 100,000 units that they -- that they will sell us. And we're going to have a very interesting alternative arrangement with the UK on steel and aluminum, which will help us, uh, protect us from -- from the flood of dumping that often occurs not just directly to us, but from different countries around the rest of the world.
Like the UK, for example. So, uh, we're in a very good place with this. I think, uh, everybody should be happy about this. And it signals that, uh, how we're going to go about these negotiations. There will be many more to come and we hope they will come, uh, as quickly as this one and y'all just be patient, uh, with us if you can.
All right, take a couple questions.
[Crosstalk]
Sir?
Yes, ma'am.
[Crosstalk]
-- digital service part, has that been worked out with the US?
We're still -- it's still in negotiations with that. And that -- that's a very big deal to President Trump. Uh, the, um, digital taxes has spread like a like a bad virus around the world, but it started, uh, in Europe and it basically targets American companies. I can say it in no other way. When you look at the digital tax, uh, you know on Facebook, the Googles and all of that, it's structured in a way where only big companies are subject to it. So, the smaller ones in these other countries are exempted from it. So that's -- that's going to be a work in progress.
[Crosstalk]
Yes, ma'am?
Can you say anything on the China talks? How low --
No, can't -- can't say a word. Yes, sir?
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How confident are you that Britain's are going to want to buy American produce when there have been concerns expressed there over chlorinated chicken and hormones in some of the -- the beef?
Well, let's see what the market says. Our position, uh, is and always has been, that behind much of these, what they call phytosanitary standards for agriculture, is simply a phony tool that's used to suppress what is very fine American agricultural products. So, uh, if -- if more of that comes into the market and the British people don't want to buy it, that's one set of facts.
We don't believe once they taste American beef and chicken, uh, that they -- that they would prefer not to have it.
[Crosstalk]
Yes, ma'am?
Mr. Navarro, so the president just told us that the US is working on three other trade deals currently. Can you give us a hint of which countries might be next?
Never -- never get ahead of the president. But I do know, um, that -- that, uh -- the way -- again, the way the process works, you ever been to a deli where you go in and you take a number and you stand in line to order? It's kind of like that. If you've ever been across the street with the United States Trade Representative, Jameson Greer, that's kind of where all that magic happens.
He's got hundreds of people who work there and, uh, every single day, we've got, uh, representatives from different countries coming in. Uh, I was looking at the calendar today that goes out to July, uh, in terms of the different tranches of negotiations. And I just want to assure the American people that we are moving in Trump time, which is to say as quickly as possible, um, with the greatest expectation that we'll get a great result for the American people.
And at the end of that journey, uh, the international trading system will be better off. It's in disequilibrium now. It's set up in a way where the World Trade Organization allows other countries to systematically charge us higher tariffs and to systematically impose higher non-tariff barriers without allowing us, uh, any dispute resolution mechanism.
That's an unsustainable equilibrium when we're running trillion-dollar deficits. Yes, ma'am?
Sir, about Mexico. Um, despite of the tariffs, the Department of Commerce reports that the imports from Mexico increased over 9 percent in the first quarter of the year. What are your thoughts?
I'm not going to speak to individual countries because that's the job of Jamison Greer and Howard Lutnick. I can say that Mexico is one of our great allies and trading partners and we're giving it a tremendous amount of attention. Yes, ma'am?
Are you describing this deal as a free trade deal, and yet there are still 10 percent tariffs?
I don't -- I didn't say free --
The president has.
Well, it's -- what it is, is it's a realignment of a way from a system where the American people and American producers are being exploited by the system itself. So, if you simply look at the deal itself, to just take it at face value, what are we doing? We're reducing trade barriers to agriculture, the non-tariff barriers.
They're mostly non-tariff barriers that are being lowered. And we're, uh, with respect to some of the great things that, that the UK is going to benefit from, we're -- we're -- we're acknowledging that they are an ally and that we want them to prosper as well, but under conditions which don't allow dumping into our markets.
Yes, ma'am.
Will that 10 percent -- In response to the EU's blueprint released earlier today about the [Inaudible].
Uh, look, let me just say that that any country which retaliates against the United States, which is simply trying to get fairness, um, is making a great mistake. And it -- it's not a road, I think that, um, we want to go down. And we open negotiations with the EU. We're more than welcome to have those negotiations.
But for them to publish stuff like that, I don't think it's in the interest, uh, or the spirit of negotiations that really are going to be as effective as they otherwise could. So, I would just caution that that retaliation is not a -- not a -- as they say in game theory, it's not the dominant strategy. The dominant strategy for Europe and others to recognize, um, is that the United States will not tolerate unfairness to its people and producers, that the system -- I mean, nobody -- I don't think anybody standing before me disagrees with the statement that the world charges us higher tariffs and has higher non-tariff barriers.
And if that is true, then how could you criticize the United States for simply trying to make that right? All right, sir?
What's your reaction to President's Putin and Xi suggesting that China and Russia might sort of boost their trading relationship [Inaudible]?
I -- I'm not -- not going there. Uh, we -- we have other people involved in that.
Mr. Navarro?
Yes, ma'am?
Could we see the next trade deal next week?
Everyone wants to know -- Do me a favor, it's like, look at this game. Stop and smell the roses here, focus on today's deal, the importance of you as journalists focusing on today's deal is to not only report what today's deal does, but also what it signals in terms of being a template for the rest of the negotiations.
And to repeat, we -- we know how the world cheats us across four or five different verticals. We go systematically with each country to get redress on that and there it goes. OK. Take one more here. Yes, ma'am?
Thank you. Um, speaking of smelling the roses, do you feel vindicated? You've been working on this deal since the first administration. So, do you feel vindicated?
No, I don't. That's not -- that's not my place here. I'm simply the president's, uh -- one of his many lieutenants who's just trying to fulfill the Trump vision, which is fairness for the American people. All right, thank you very much.
Thank you.