Donald Trump has officially announced the first major international trade deal of his second term, confirming a new agreement with the United Kingdom. The deal comes in the wake of sweeping tariffs the U.S. president imposed on global exports earlier this year—including a 10% tariff on all UK goods and 25% levies on steel, aluminum, and cars.
Speaking from the White House, Trump described the pact as a “great deal for both countries,” calling it a comprehensive and long-term agreement. UK Prime Minister Sir Keir Starmer echoed the enthusiasm, calling it a “fantastic, historic day” for U.S.-UK relations. The deal is expected to ease some of the tariff burdens placed on British goods and potentially adjust the UK’s digital services tax, which has impacted major U.S. tech companies.
However, Starmer has stood firm on protecting UK standards. He ruled out lowering food safety regulations or watering down the Online Safety Act, insisting any agreement must serve British workers, families, and national interests. A Downing Street spokesperson reinforced that message, stating: “The United States is an indispensable ally for both our economic and national security.”
While the exact terms of the deal are still being reviewed, the announcement marks a significant diplomatic shift amid Trump’s otherwise confrontational trade policy. It also signals a potential new chapter for transatlantic economic cooperation—though not without critics.
Deputy Liberal Democrat leader Daisy Cooper voiced concerns that the deal could jeopardize UK farmers or open the door for NHS privatization and tax breaks for American billionaires. She urged the government to bring the agreement before Parliament for scrutiny.
With the 2026 U.S. election already casting a long shadow, this trade deal may prove a pivotal moment for both Trump’s administration and Starmer’s premiership—politically and economically.
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