UK strikes trade deal to reduce Trump tariffs

Britain and the US have agreed a "breakthrough" trade deal that will slash some of Donald Trump's tariffs on cars, aluminium and steel and which the prime minister said would save thousands of British jobs.

- Eleni Courea

Keir Starmer said it was a "fantastic, historic day" as he announced the agreement with the US, the first by the White House since Trump announced sweeping global tariffs last month.

Speaking to workers at the Jaguar Land Rover plant in Solihull, Starmer said the agreement had saved jobs in the car and steel industries that had been under threat.

Paul Nowak, the general secretary of the TUC, said the deal "takes us back from the brink, and many workers will breathe easier as a result".

However, critics said the deal failed to address many of the high tariffs that remained in place between the two countries.

John Denton, secretary-general of the International Chamber of Commerce, said: "The reality is that US tariffs on UK exports remain significantly higher than they were at the start of the year." He added that it was still unclear what would happen with industries not explicitly covered by the deal, such as pharmaceuticals.

The US agreed to cut the 25% tariff rate on British steel and aluminium exports to zero. The concession will be seen as a lifeline to the steel industry, for which the US is an important export market and which, the government said, weeks ago was on the brink of collapse. US tariffs on up to 100,000 British cars will also be reduced to 10%, down from the 27.5% rate Trump had initially announced. The US is the main export market for British cars, worth more than £9bn last year.

Washington promised to give "preferential treatment" to Britain's pharmaceutical industry, which Trump has also threatened with tariffs, though none has been set yet.

A 10% baseline tariff on most goods remains in place.