LONDON

UK Prime Minister Keir Starmer and US President Donald Trump on Thursday announced a sweeping new trade and economic agreement between the UK and the US, marking what Starmer called “a fantastic, historic day.”

Speaking via phone from the UK to the Oval Office, Starmer said: “The timing of this could not be more apt – on the 80th anniversary of VE (Victory in Europe) Day.”

Reflecting on the past, he said: “At that time the UK and the US were the closest of allies,” and added, “Churchill announced victory in Europe at almost exactly this time of day 80 years ago.”

Starmer praised the depth of the modern US-UK alliance, saying: “There are no two countries closer than the US and the UK in defense and intelligence sharing,” and pointed out that now “trade and economic policy have been added to the areas where they are close to each other.”

On the growing strength of both nations’ tech industries, Starmer said: “The UK and the US are the only countries with $1 trillion tech sectors.”

Calling the new agreement “an incredible platform for the future,” Starmer also took time to recognize the efforts behind the deal.  

Trump removes 25% tariff on UK steel and aluminum

Trump has decided to remove the 25% tariff on UK steel and aluminum, while also reducing the tariff on most car exports from 27.5% to 10%.

This new car tariff applies to the first 100,000 vehicles exported from the UK to the US annually, with 101,000 vehicles having been exported last year.

In exchange, the UK government has agreed to eliminate its tariff on US ethanol imports and has committed to providing "reciprocal market access on beef."

Trump also mentioned that the deal would include beef, ethanol, and other agricultural products, with details to be finalized in the coming weeks.

US Secretary of Commerce Howard Lutnick said the deal is expected to add $5 billion in opportunities for American exporters.

However, he clarified that the baseline 10% tariff on UK imports will still apply, although Rolls-Royce engines will be exempt from tariffs. 

“It’s a real tribute to the history that we have of working so closely together,” he said, adding: “Trump’s negotiating team have done an incredible job.”

Trump, who introduced Starmer during the joint announcement, confirmed that steel is “a big factor in this deal that will make both countries stronger.”

He also revealed that “American chemicals and machinery have been added to the deal.”

While some final technical details are still being worked out, Trump stated that the core agreement is settled: “The actual deal is a conclusive one.”

He framed the deal as more than a trade pact, saying it would bring the UK into “economic security alignment with the US,” which he described as a “big economic security blanket.”