US President Donald Trump said the agreement would be ‘so good’ for both countries as he lavished praise on Keir Starmer and ‘special relationship’
Donald Trump and Keir Starmer have announced the UK and US have reached a “breakthrough” trade deal.
The US President said the agreement would be “so good” for both countries as he lavished praise on the PM and “special relationship” during a call from the Oval Office. It is the first agreement the White House has reached with a country since Mr Trump imposed sweeping tariffs on global imports to the US.
Last month Mr Trump introduced a universal 10% tariff on all imports to the UK while some sectors – including steel – were hit much harder. But No10 said today the new deal will mean US tariffs on steel and aluminium will be reduced from 25% to zero in a boost for the struggling industry.
Car export tariffs will reduce from 27.5% to 10% for a quota of 100,000 UK cars. Despite speculation a UK tax imposed on tech giants could be slashed as part of the deal, Downing Street said the Digital Services Tax will remain unchanged.
Mr Trump said the UK will be “fast-tracking American goods through their customs process” so that US exports will go through a “very, very quick” form of approval. “There won’t be any red tape, things are going to move very quickly both ways,” he said.
He said that the “final details” are still being “written up”, adding: “The actual deal is a very conclusive one we think, just about everything has been approved.”
Follow live updates of the US President and Keir Starmer’s press conferences here
Mr Starmer said “this is a really fantastic, historic day” as he spoke to the US President from the UK. The PM said: “This is a really fantastic historic day in which we can announce this deal between our two great countries, and I think it’s a real tribute to the history that we have of working so closely together.”
“This is going to boost trade between and across our countries. It’s going to not only protect jobs, but create jobs, opening market access, and as you say, Donald, the timing couldn’t be more apt, because not only was it 80 years ago today that victory came for Europe after and at the end of the Second World War, but of course on that the UK and the US stood together as the closest of allies.”
Last month Mr Trump introduced a universal 10% tariff on all imports to the UK while some sectors – including steel – were hit much harder. Mr Trump teased the announcement in a post on his Truth Social platform overnight, saying he would be making an announcement on “a major trade deal” with a “highly respected nation – one of the best”.
“Because of our long-time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
Mr Starmer is also set to take questions this afternoon as he holds a press conference. He previously said he would “act in our national interest” over any deal.