News analysis Starmer happy about UK-US deal, but what does it say about Trump's long-term trade strategy?

Writing on Truth Social, his preferred social media platform, US President Donald Trump claimed it was a "great honour" that Britain became the first country to sign a new trade deal since he announced sweeping global tariffs on most countries.

- Jonathan Eyal

LONDON - Writing on Truth Social, his preferred social media platform, US President Donald Trump claimed it was a "great honour" that Britain became the first country to sign a new trade deal since he announced sweeping global tariffs on most countries.

Mr Trump also boasted that the deal with Britain was "full and comprehensive". British Prime Minister Keir Starmer was equally happy; he branded May 8 - the date when the agreement was concluded - a "fantastic, historic day".

However, although noteworthy, the Britain-US deal's primary significance is mainly political. It tells us next to nothing about Mr Trump's long-term trade strategy.

Nor can it serve as a pointer to any other trade agreements Washington may seek to conclude with key partners such as China, Japan or the European Union, all of which are in a different predicament from the British.

The US is Britain's single biggest trade partner. Just over 16 per cent of all British exports go to the US, double the volume of exports to Germany - its next-largest trade partner - and about four times more than Britain's sales to China.

So, in terms of their exposure to Mr Trump's trade tariffs, the British are as vulnerable as Canada or Mexico, Washington's closest neighbours.

However, the British enjoy one advantage: their trade with the US is roughly balanced.

Indeed, the US Bureau of Economic Analysis calculates that Washington enjoyed a healthy US$14.5 billion (S$18.82 billion) surplus in total trade with Britain in 2023, the last year for which full figures are available.

Britain's statistical agency, which collects data differently and calculates trade in services differently, thinks that Britain enjoys a healthy trade surplus with the US.