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Starmer and Trump hail 'historic day' as UK and US agree trade deal

Western Mail

|

May 09, 2025

A "HISTORIC" UK-US trade deal will save thousands of jobs in the car and steel industry, which had been threatened by Donald Trump's tariffs, Sir Keir Starmer said.

- CHRISTOPHER MCKEON, DAVID HUGHES, CAITLIN DOHERTY, DAVID LYNCH and GEORGE LITHGOW Press Association reporters

The trade agreement was confirmed in a call between the Prime Minister and the US President, which was broadcast live on both sides of the Atlantic.

US import taxes that had threatened to cripple British high-end carmakers were cut from 27.5% to 10%, while the 25% tariff on steel has also been removed.

The blanket 10% tariff imposed on all imports by Mr Trump as part of his sweeping "liberation day" announcement remains in place.

Speaking to Mr Starmer from the White House, the US President said the agreement was a "great deal for both countries". But Mr Trump said the "final details" of the agreement were still being "written up".

He said: "The US and UK have been working for years to try and make a deal and it never quite got there. It did with this Prime Minister, so I want to just congratulate you."

Mr Starmer said: "With this president and this Prime Minister, we've managed to achieve what many people tried to achieve for many years, and I'm really pleased."

He added: "This historic deal delivers for British business and British workers, protecting thousands of British jobs in key sectors, including car manufacturing and steel."

The US president had previously described the deal as "full and comprehensive", but yesterday's announcement focused on a narrower set of industries.

Measures include:

■American tariffs on British cars fall to 10% for the first 100,000 vehicles exported to the US, while tariffs on steel are scrapped.

■The US has removed the 25% tariff rate on UK steel and aluminium exports, reducing the additional trade barrier for these goods to zero.

■Beef exports will be allowed both ways, with officials insisting there will be no weakening of food standards for meat sent to Britain.

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