'TRULY HISTORIC'
Trump says new UK-US trade deal is ‘great for both countries’ as Keir hails ‘trade boost’ after weeks of tariff hell
The agreement will slash tariffs on Britain's car exports to America from 27.5 per cent to 10 per cent
DONALD Trump has today revealed a “full and comprehensive” trade deal with Britain — and hailed an “exciting day” for the two countries.
The US President used a press conference in the Oval Office to announce the “first” agreement with the UK after his global tariff blitz.
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On a televised live phone call with Sir Keir Starmer, he hailed it as " a great deal for both countries".
The agreement will slash tariffs on Britain's car exports to America from 27.5 per cent to 10 per cent.
And steel tariffs will be reduced from 25 per cent to zero in a boost for the export market.
But the baseline 10 per cent tariffs on all other goods imposed by Mr Trump on last month's "Liberation Day" still remain.
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And Britain appears to have cut typical tariffs on US imports from 5.1 per cent to 1.8 per cent.
Mr Trump said bolstering trade "always a big part of your decision on Brexit" while personally lavishing praise on the "terrific" UK PM.
The President also highlighted how it is a "special day" because it is 80 years since Victory in Europe Day.
"Today's agreement with the UK is the first in a series of agreements on trade that my administration has been negotiating over the past four weeks," he said.
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What is in the US-UK trade deal?
DONALD Trump and Sir Keir Starmer have signed a trade deal - here are the details.
CARS: Tariffs on British-made cars being sold in the United States will be slashed from 27.5% to 10%. It will apply to a quota of 100,000 vehicles and save a company like Jaguar Land Rover hundreds of millions of pounds.
STEEL: Tariffs on steel and aluminium exports into the United States will be slashed from 25 per cent down to zero.
BEEF: A "reciprocal" tariff-free deal has been made for 13,000 tonnes of beef, making it cheaper for export the meat across both countries. Britain insists it has not weakened food standards, which it has said was a red line.
ETHANOL: Tariffs on imports of American ethanol have been reduced to zero
OTHER GOODS: Other British goods are still subject to the baseline 10% tariff announced by Mr Trump on "liberation day". Whereas the US are claiming the UK has reduced its tariffs on America from 5.1% to 1.8%
"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 US President also suggested the UK will be "fast-tracking American goods through their customs process", he said, and "there won't be any red tape".
He added: "The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all the products produced by our great farmers."
He praised the UK as "one of the greatest" allies of the States and said the country "is right at the top - they're the first one we're talking about".
The US President said he wants to "thank prime minister Starmer", calling him "terrific" and saying the two countries have a "great relationship".
President Donald Trump says he won't cut U.S. tariffs on Chinese goods to get Beijing to the negotiating table
Trump added how the "bond between our two countries will soon be stronger than ever before".
Sir Keir Starmer praised the deal as "hugely important for sectors like car manufacturing and steel".
He paid tribute to the US president's negotiating team, saying they did "an incredible job, a very professional job".
"This is going to boost trade, between, and across our countries," the PM said.
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"It's going to not only protect jobs, but create jobs., opening market access."
Starmer said the timing of this deal "couldn't be more apt", and referenced VE Day 80 years ago today.
He said: "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, the US standing side by side - I think is incredibly important and makes this truly historic."
The PM echoed Trump's previous statements and said "we've always had a fair, balanced arrangement between our countries".
He continued: "This builds on that. Hugely important for sectors like car manufacturing., and for steel and aluminium and so many others.
"And yes, we can finish ironing out some of the details, but there's a fantastic platform here, including, of course, on the tech side.
"I'm so pleased that we got this deal, we've finalised it. And we've built an incredible platform for the future."
UK ambassador to the US, Peter Mandelson, said afterwards: "Thank you very much indeed for that very typical eleventh hour intervention by you - your phone call to the PM - demanding even more out of this deal than any of us expected.
"But you took it to another level", he added.
Mandelson continued: "You said to the prime minister when he came, and we visited the Oval [Office] that you would do a good trade deal with the United Kingdom, that you would do it at pace and that we would be first, and you have delivered that."
On his Truth Social platform, Trump said earlier: “This should be a very big and exciting day for the United States of America and the United Kingdom.”
He went on: "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.
"Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement.
"Many other deals, which are in serious stages of negotiation, to follow!"
The UK has been seeking to lower tariffs ever since Trump imposed the punishing levies of 10 per cent on all imports to the US from Britain.
It will be a framework for mitigating some of the tariffs which will pave the way for a “substantive” step towards a deal.
It comes after reports suggested three weeks ago that White House officials said a deal would be signed within two or three weeks.
Bank of England Governor Andrew Bailey "welcomed" news a deal had been reached.
He said: "It will help to reduce uncertainty. The UK is, though, a very open economy and is affected by the tariffs affecting other economies.
"I say that because I hope the UK agreement, if it is the case this afternoon, is the first of many.
"It is excellent that the UK is leading the way and I do congratulate all those involved."
British representatives arrived in Washington DC earlier and are expected to be at the event, various reports have suggested.
Details of the trade deal being signed were first reported by the New York Times.
Speaking about the prospect of a deal today, amid new threats to global security, Starmer said in London: "We must use this moment to deepen our partnerships with allies, old and new.
"From across Europe to meet the defense challenges of our age, to the United States, an indispensable ally for our economic and national security.
"As you know, talks with the US have been ongoing, and you'll hear more from me about that later today.
"But make no mistake, I will always act in our national interest for workers, businesses and families to deliver security and renewal for our country, because the world has changed.”
Trillions were wiped off US markets last month when Trump placed tariffs on countries around the world, including a 145 per cent levy on imports from China.
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Following the placement of tariffs on the UK, officials quickly became keen to secure a deal to prevent the worst of the damage to the economy.
When Starmer visited the US in late February, ahead of the tariffs being imposed, Trump hinted that the UK could be in for a "quick" trade deal and avoid the worst of the damage.
However, the UK was still hit by a 10 per cent levy on most goods, and a 25 per cent tax on cars.
In the wake of the news, Jaguar Land Rover said it would "pause" shipments to the US as it took time to "address new trading terms".
The major motor manufacturer, which sells more than 100,000 vehicles in the US each year, would suffer as its motors would be less competitively priced compared to US cars, due to the 25 per cent levy.
Fears then emerged that jobs could be lost in the UK, amid the global trade turmoil.
Trump likes a deal & LOVES attention - his promise of a UK-US trade deal will be a relief... but will it go far enough?
By Ryan Sabey
Donald Trump unleashed devastating tariffs on Britain when he stood in the Rose Garden at the beginning on April.
Britain - a long-standing ally - was hit with punishing levies that would affect businesses up and down the land.
This is how you treat your friends?
But Donald Trump likes a deal and he loves the attention.
There will be much relief in Downing Street that Trump has said that a "major trade deal" will be announced later today - the first of its kind since those levies were announced.
Let's hold our horses there as we need to loom at the detail at how much is packed into this deal.
Those in government are very keen to point out every time myself or political journalists mention it is that this is a narrow deal and not a "full-fat" trade deal.
What eagle-eyed observers will be looking out for later is how much mitigation there is on the 10 per cent tariffs on goods heading to America.
Also, what benefits will be felt for the car industry on imported motors after the long-drawn out negotiations.
But for Sir Keir Starmer this will be seen as a big boost when politically he has found things tough.
He has been under pressure over winter fuel payments and the local election losses including losing that Runcorn and Helsby by-election to Nigel Farage's Reform UK.
This will be seen as a win in Number 10.
Trump’s Vice-President JD Vance raised the prospects of a deal between the UK and US being signed during a recent interview.
He told Unherd: “There’s a real cultural affinity.”
“And of course, fundamentally America is an Anglo country... I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries.”
British officials will hope to be able to secure a deal today in order to prevent any further damage to the economy.
A Downing Street spokesperson said: "The Prime Minister will always act in Britain's national interest - for workers, for business, for families.
"The United States is an indispensable ally for both our economic and national security.
"Talks on a deal between our countries have been continuing at pace and the Prime Minister will update later today."
Trump imposed his "liberation day" tariffs on the UK and other countries during a White House rose garden ceremony on April 2.
Boom and gloom
Here are some of the ways Trump's global trade war will affect you.
FUEL PRICES: With wholesale prices tumbling, the RAC predicts petrol and diesel will fall by up to 6p a litre over April and May.
The bad news is this is only because traders think a recession will affect demand.
MORTGAGES: Brokers forecast a Bank of England rate cut from the current 4.5 per cent in May.
Loan rates could fall as low as 3.79 per cent, saving homebuyers thousands.
High street banks are already gearing up for a price war, with TSB reducing two-year fixed mortgage rates by up to 0.25 per cent last month.
PENSION FUNDS: Those with defined benefit pension schemes ought not to worry as they are managed conservatively.
Others should ensure pensions are invested in a mix of assets, including bonds — and not stuffed with plunging US stocks.
COST OF GOODS: Some imports could become cheaper as companies in countries hammered by Trump give the US a miss.
But that will hurt British manufacturers if we are flooded with cut-price products.
He imposed a levy of 10 per cent on UK goods heading Stateside, while all foreign vehicles sent to the US were subject to a 25 per cent surcharge.
There were higher reciprocal tariffs placed on other countries but these were reduced to 10 per cent in a 90-day suspension.
Despite this u-turn, economic concerns struck across the UK, with traders predicting the Bank of England would cut interest rates in May.
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While this could spell good news for homebuyers, it is a sign that the Bank fears the economy is in need of a boost in spending.
Fuel prices were also predicted to tumble amid fears of a recession.
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