UK and US announce trade deal to save thousands of British jobs, Starmer says

The UK and US have agreed a trade deal, with Sir Keir Starmer and Donald Trump confirming the announcement during a live televised phone call.

It is the first trade deal agreed after Mr Trump began his second presidential term in January, and after he imposed strict tariffs on countries around the world in April.

Sir Keir said the "first-of-a-kind" deal with the US will save thousands of jobs across the UK, boost British business and protect British industry.

Politics latest: Trump and Starmer say trade deal just the start

The deal includes:

• Lowering 27.5% tariff on British car exports to the US to 10%, affecting 100,000 vehicles each year

• UK steel and aluminium industries will no longer face any tariffs after they had 25% duties placed on them

• Beef exports allowed both ways

• UK to have "preferential treatment whatever happens in the future" on pharmaceuticals, the president said.

However, there is a still a 10% tariff on most UK goods imported into the US after Mr Trump imposed that duty on most countries' exports last month.

Mr Trump said the "final details" of the agreement were still being "written up".

Business Secretary Jonathan Reynolds told the Politics Hub with Ali Fortescue: "It is a brilliant deal because without the breakthrough on these sectoral tariffs that we've been able to announce today, thousands of people stood to lose their jobs very soon in the UK, and the economic damage to the UK would have been very significant from there."

He said the deal is only the first part and negotiations on the 10% tariffs are "still ongoing".

Trade minister Douglas Alexander told parliament the UK has "committed to further negotiations on tariff reductions".

MPs will be able to debate the deal and any legislation needed to implement it, he added.

Sir Keir said "this is a really fantastic, historic day" that will "boost trade between and across our countries", while Mr Trump said the agreement would be a "great deal for both countries".

The president said the deal will make both the UK and the US "much bigger in terms of trade" as he thanked Sir Keir, who he said has been "terrific for his partnership in this matter...we have a great relationship".

Sir Keir said it was achieved by not playing politics, and insisted the UK can have good trade relations with both the US and the EU.

Red lines on beef and chicken

The PM said the UK had "red lines" on standards written into the agreement, particularly on agriculture.

Mr Alexander told the Commons: "Let me be clear that the imports of hormone-treated beef or chlorinated chicken will remain illegal.

"The deal we've signed today will protect British farmers and uphold our high animal welfare and environmental standards."

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'American beef is the safest'

US agriculture secretary Brooke Rollins said the deal will "exponentially increase our beef exports", and added: "To be very clear, American beef is the safest, the best quality, and the crown jewel of American agriculture for the world."

On whether the UK will have to accept all US beef and chicken, Mr Trump said: "They'll take what they want, we have plenty of it, we have every type, we have every classification you can have."

Hinting the US will move towards higher welfare practices, he said US health secretary Robert F Kennedy Jr "is doing a tremendous job and he's probably heading toward your system with no chemical, no this, no that".

'A Diet Coke deal'

Previous UK governments have attempted - and failed - to secure a free trade agreement with the US, but Sir Keir had made it a high priority.

Conservative shadow trade secretary Andrew Griffith chastised the deal, saying the UK is still in the same category as Burundi and Bhutan.

"It's a Diet Coke deal, not the real thing," he told the Commons.

(c) Sky News 2025: UK and US announce trade deal to save thousands of British jobs, Starmer says