A shallow US-UK trade pact is pitched as a win by leaders facing economic and political pressure.
More than a month after Donald Trump launched his aggressive tariff blitz dubbed “Liberation Day,” the first fruit of his scorched-earth trade policy has arrived — a modest deal with the United Kingdom that’s being loudly oversold by both leaders despite its underwhelming substance.
In a carefully staged Oval Office appearance, Trump and UK Ambassador Peter Mandelson grinned for the cameras, with Prime Minister Keir Starmer joining by speakerphone from a Jaguar Land Rover plant in the Midlands. Despite a trade surplus already in America’s favour, Trump heralded the agreement as a triumph of his economic prowess. “It’s very conclusive,” he claimed. “Many countries want to make a deal, and many are very unhappy that we happened to choose this one.”
The deal, however, does little to restore economic stability after Trump’s tariffs sent global markets reeling. American tariffs on most UK goods remain at 10%, though British steel gets a reprieve. In return, British consumers get easier access to American beef, ethanol, and vehicles—assuming they want them. Analysts noted the UK comes out slightly worse off than it was before Trump’s tariff storm.
Still, the leaders were keen to spin. Starmer, playing to Trump’s ego, compared the occasion to VE Day and praised Trump’s “singular leadership,” even as critics pointed out the agreement’s limited scope and negative implications for British manufacturers.
“This is going to boost trade between and across our countries,” Starmer said, glossing over the fact that the UK, post-Brexit, has long been desperate for a US trade deal. Trump, meanwhile, needs political wins to offset plunging imports, inflation, and a looming recession. Their shared desperation for a headline made them perfect partners for what one analyst called “a bargain basement deal.”
Commerce Secretary Howard Lutnick, always ready with flattery, described Trump as “the closer,” crediting him for deals others “could never get done.” The president, in turn, slipped between describing Britain as both a long-time ally and a previously closed market that’s only now becoming accessible. “It opens up a tremendous market for us,” he said. “You see the chart. Those are tremendous assets.”
But behind the pomp, the economic reality remains bleak. Britain, facing sluggish growth and rising costs, gains little from a deal that does not address the EU-sized hole left in its trading portfolio. For Trump, the agreement does little to undo the economic chaos caused by his all-out tariff war.
Perhaps most jarring was Trump’s apparent threat to export conspiracy-driven food regulation by way of Robert F. Kennedy Jr. “He’s doing a tremendous job,” Trump said, referencing Kennedy’s anti-chemical crusade. “I think we’re heading that way,” he added ominously when asked about food standards.
The image of two leaders clinging to a minor deal as a major achievement stood in stark contrast to the global consequences of Trump’s trade upheaval. For the UK, it was another sign of diminished clout. For the US, a sign of how far the administration will go to claim a win.
As Trump teased more deals — “numerous deals,” in fact — especially with China, scepticism hung in the air. “We can all play games. Who made the first call, who didn’t — doesn’t matter,” Trump said. “But I will tell you China very much wants to make a deal.”
If that’s true, it may be because no one else does.
SKY NEWS
The US and UK have struck a new trade deal, announced live during a dramatic Oval Office phone call between President Trump and Prime Minister Starmer. Sky News correspondents James Matthews and Mark Stone, present for the moment, discuss the symbolic and strategic importance of the agreement. The deal is being hailed by some as a post-Brexit triumph for Britain, underscoring the UK’s ability to strike major bilateral agreements independently of the EU. The timing is notable as President Trump looks to bolster foreign policy credentials ahead of the US election, while Starmer seeks to showcase global economic leadership. Sky News’ Trump100 podcast explores not only the trade pact but also a historic moment in the Vatican: the election of the first American-born Pope. The show speculates whether the new Pontiff’s views on Trump may have influenced his selection. Listeners are invited to submit questions to the Trump100 team via email, as international political drama continues to unfold.
THE GUARDIAN
The US-UK trade deal announced after a transatlantic call between Keir Starmer and Donald Trump includes key sectoral agreements. Tariffs on UK car exports to the US will fall from 27.5% to 10%, capped at 100,000 vehicles annually. Steel and aluminium tariffs, previously 25%, are eliminated—a politically symbolic win amid UK intervention to save British Steel. In agriculture, the UK secured access for beef exports while allowing £5bn in US agricultural imports, prompting cautious acceptance from the National Farmers Union. Customs procedures will be streamlined, and US aerospace firms will gain easier access to UK components. However, pharmaceuticals, digital services taxes, and the UK film industry were excluded—Trump recently threatened 100% tariffs on foreign films, alarming UK producers. Trade Minister Douglas Alexander confirmed no concessions on online safety or digital taxes. While the deal marks progress, especially for manufacturing, its omissions—particularly around creative industries and medicines—mean further talks are likely. The full impact will depend on future US policy decisions.
