The PM struck the first post-tariff trade deal with Donald Trump – but is it a real win for the UK or just damage control – some tariffs are down, jobs might be saved, but plenty of costs and questions remain
Now the dust has settled on the much-touted Trump–Starmer trade deal, we want to know if you think it’s a win for Britain – or not.
The Prime Minister just became the first world leader to strike a trade deal with Donald Trump since those massive ‘reciprocal’ US tariffs were announced on ‘Liberation Day’ in April — and the US president says it only happened “because of Brexit”. The agreement cuts tariffs on UK exports like steel and car parts, which Keir Starmer says will “save thousands of jobs in Britain.”
So, that must be good news you’d think? Well, sort of.
The deal covers industries from aerospace to agriculture, and yes, it’s big – the US bought nearly £60bn of British-made products in 2024, and we’ve got £1.5 trillion invested in each other’s countries. But a bunch of UK products will still face 10% tariffs going into the US – which simply didn’t exist before. That’s a hit for exporters and could still mean job cuts.
Car makers like Jaguar Land Rover and Mini dodged Trump’s 27.5% tariff – but will now pay 10% on the first 100,000 vehicles sold to the US. Better than before, but still not great. Elsewhere, Rolls Royce did well – they can sell engines tariff-free.
Steel makers will benefit even more, with the 25% tariff on steel and aluminium slashed to zero. While the details are sketchy, aerospace could also be better off. But what do YOU make of it all? Do you think the Trump-Starmer trade deal is good for the UK? Take our poll below. If you can’t see it, click here
So after all this, what has the US got in return? America has scored bigger access to UK markets for ethanol, machinery, textiles – and, more controversially, agriculture. Tariffs on US ethanol, widely used in UK manufacturing, are being scrapped. The government says it’s a two-way street, with UK farmers getting a 13,000-tonne beef export quota – and insists hormone-treated beef and chlorinated chicken will stay banned.
This is all very well, but what does it mean for UK households? Well, lower tariffs should take some of the heat out of inflation, and that means prices. But tariffs are still very much in place, not just on the UK but dozens of other countries around the world. Time will tell but President Trump claimed the deal would lead to “lower prices”.
There have been fears that the biggest wave of tariffs for a century would lead to large scale job losses. Experts forecast that, in the UK car industry alone, more than 25,000 jobs could go if the 25% tariffs had remained. The easing of tariffs are likely to take some of the pressure off companies, but the remaining 10% tariffs could still lead to redundancies, or force firms to scale back on hiring.
Economists cut their UK growth forecasts for this year and next when Trump’s tariffs were first announced – and most don’t think this new deal will undo the damage. Thomas Pugh from RSM UK warned any boost will be “minimal” and said the UK is still “in a significantly worse position than just a few months ago.”
Paul Dales, chief UK economist at Capital Economics, believes the deal with the US “won’t make a big difference to the UK economy as a whole”, adding that it was not a free trade agreement and had yet to be signed. He also warned that, despite the concessions, US tariffs on UK goods were still set to rocket from 1% last year to an estimated 11%, although better than the 13% before the deal was struck. And he added: “The upcoming UK-EU reset won’t be a gamechanger either. That said, every little bit helps.”
Do you think the Trump-Starmer trade deal is good for the UK? Take our poll above and expand on you feelings in the comments below.