Donald Trump and Keir Starmer have officially announced a new UK-US trade deal.
The US president and his UK counterpart outlined the agreement in a televised phone call on Thursday afternoon.
Starmer had made a trade deal with the United States a key priority. The announcement means the UK is the first country to agree a deal with the US since Trump unveiled sweeping “liberation day” tariffs in April.
Under the terms of the deal, car export tariffs will reduce from 27.5 per cent to 10 per cent. This will apply to a quota of 100,000 UK cars, almost the total the UK exported last year.
The UK steel industry, which had been hit by a 25 per cent duty, will no longer face tariffs.
The US and UK have also agreed new reciprocal market access on beef – with UK farmers given a tariff free quota for 13,000 metric tonnes.
There will be no weakening of UK food standards on imports, No 10 has said.
Speaking on Thursday afternoon, Trump said: “With this deal the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade.
“The deal includes billions of dollars of increased market access for American exports, especially for agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers and our Secretary of Agriculture as you know is here.
“In addition the UK will reduce or eliminate numerous non-tariffs barriers that unfairly discriminated against American products, but this is now turning out I think really to be a great deal for both countries because it will be really great for the UK also.”
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The US president added: “Once again I want to thank prime minister Starmer, he’s been terrific for his partnership in this matter. The special relationship and external bond, it’s really an external and internal bond between our two countries, will soon be stronger than ever before.”
Starmer responded: “Thank you Mr President, Donald, and 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…
“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 and at the end of the Second World War, but of course on that day the UK and the US stood together as the closest of allies…
“So to be able to announce this great deal on the same day 80 years forward, almost at the same hour, and as we were 80 years ago with the UK and US standing side by side I think is incredibly important and truly historic…
“Now we take this into new and important territory by adding trade and the economy to the closeness of our relationship. It is built as you say on the notion of fairness… We’ve always had a fair and balanced trading relationship.”
On Tuesday, the UK announced it had agreed a “landmark” new trade deal with India – which will add £4.8 billion to the UK economy and £2.2 billion in wages every year.
Business and trade secretary Jonathan Reynolds commented: “I am delighted our calm approach and proactive engagement with the US has resulted in this deal which cuts tariffs for UK industry and cuts costs for businesses.
“Businesses across the country will be glad to see our approach working, but this is only the beginning. We look forward to strengthening our trading relationship with the US through a wider economic deal, which will help us to deliver on our Plan for Change to provide economic stability and make this country fit for the future.”
In a post on Truth Social earlier on Thursday, Trump said it was a great honour to reach the first agreement with the UK “because of our long time history and allegiance together”.
Conservative response to the US-UK trade deal:“We’ve just been shafted!”
— Josh Self (@josh.politics.co.uk) 2025-05-08T15:35:11.134Z
Josh Self is Editor of Politics.co.uk, follow him on Bluesky here.
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