UK-US trade deal could mean tariffs 'not necessary', says Trump

During a joint press conference with British Prime Minister Keir Starmer, U.S. President Donald Trump stated that a trade agreement between the U.S. and the UK could be reached "very soon." Trump made the remarks during the Prime Minister's visit to the White House, envisioning a "real trade deal" that would allow the UK to avoid the tariffs the President has threatened to impose on other U.S. trade partners. This potential agreement aims to strengthen economic ties and foster a more collaborative trading environment between the two nations.

The visit was viewed as a crucial moment in Prime Minister Starmer's tenure, as he sought to influence Trump's decisions on issues including Ukraine and trade. Starmer began his White House visit by presenting Trump with a letter from King Charles, inviting Trump for an "unprecedented" second state visit to the UK. Receiving the letter in front of cameras in the Oval Office, Trump said it would be a "great honor" and called the King "a terrific person." Starmer indicated that the offer of a second state visit was "truly historic," considering that U.S. presidents are typically only granted one state visit.

After confirming he would accept the invitation, Trump joined Starmer in taking questions from reporters for 30 minutes. The U.S. President largely dominated the speaking time, elaborating on his positions on numerous issues, including the possibility of a deal in Ukraine and a potential agreement between the UK and Mauritius over the Chagos Islands. On the plane to the U.S., Starmer reiterated his willingness to send British troops to Ukraine as part of a peace deal. However, he argued that without security guarantees from the U.S., Russian President Vladimir Putin might invade Ukraine again. When asked if he would provide such guarantees, Trump said that a minerals deal he planned to sign with Ukraine on Friday could provide "backstop." He said if American workers were in the country as part of the minerals deal, then "nobody's going to mess around."

The U.S. President was also pressed on whether he stood by his claim that Ukrainian President Volodymyr Zelenskyy was a "dictator." "Did I say that? I can't believe I said that," he said. He later added that he had "great respect" for Zelenskyy, whom he was due to host in Washington, D.C. on Friday. A planned agreement between the UK and Mauritius over the Chagos Islands has been one source of potential tension between the British and American leaders. However, Trump appeared to support the UK's approach, saying he was "inclined to agree." The agreement would see the UK relinquish sovereignty of the Indian Ocean archipelago, but retain control of Diego Garcia – which includes a US-UK military airbase – through a leaseback arrangement.

After taking questions in the Oval Office, the two leaders held talks before a formal press conference, during which Trump spoke repeatedly about a U.S.-UK trade deal potentially being reached "very soon." Starmer referred to an economic agreement, rather than a trade deal, saying that the UK and U.S. would begin working towards an agreement on the potential of artificial intelligence. "Instead of over-regulating these new technologies, we seize the opportunities they offer," he said. He stated that the UK and U.S. had shaped "the great technological innovations of the last century" and now had the chance to do so again in the 21st century. "AI can cure cancer. This could be our moonshot of our generation, and that's how we continue to deliver for our people," he said.

Trump has repeatedly threatened to impose tariffs – import taxes – on many allies, including a 25% tariff on goods made in the EU. He also ordered a 25% import tax on all steel and aluminum entering the U.S. – which could hit the UK. Asked if Starmer had sought to dissuade the President from imposing tariffs on the UK, Trump said: "He tried." "I'll tell you, he tried hard. He earned whatever salary they pay him over there," he said. "I think it's very possible that, in the case of these two great, friendly countries, we will end up having a real trade deal, in which case tariffs would not be necessary. We'll see what happens."

In his pitch to persuade the President not to impose tariffs on the UK, Starmer said the U.S.-UK trading relationship was "fair, balanced and reciprocal." Since leaving the EU, successive UK leaders have sought a comprehensive free trade agreement with the U.S. During his first term as president, Trump said negotiations on a "very substantial" trade deal with the UK were underway. However, talks stalled amid disagreements over U.S. agricultural exports and the UK's taxation of tech companies. The head of trade policy at the British Chambers of Commerce – a former Labour MP and minister – told BBC Radio 4's Today program on Friday that businesses would be encouraged by what he called "an important first step." "Relationships are crucial in trade negotiations," William Bain said, adding that it was "helpful" to see the two leaders finding common ground on their respective economies and trade. He added that an agreement to keep tariffs low would most benefit the UK's automotive and pharmaceutical industries.