Trump and Starmer Secure Trade Deal as EU Falls Behind

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Donald Trump endorses a new UK-US trade agreement following high-level discussions with Prime Minister Keir Starmer, delivering significant tariff reductions on British goods. The deal, confirmed during the G7 summit in Canada, aims to strengthen bilateral ties and opens new economic avenues for the United Kingdom, particularly in manufacturing and exports.

The agreement eliminates or reduces tariffs on key British sectors, including a cut in car tariffs from 25 percent to 10 percent and similar reductions in aerospace components. Trump emphasises that the UK’s post-Brexit independence enabled swift negotiations. Starmer, in turn, highlights the deal’s value to UK industry and labor, calling it a step forward in restoring international trade confidence.

Despite the diplomatic gain, the agreement stops short of a full free trade deal. The 25 percent US tariff on British steel remains in place, pending further negotiations. Discussions continue over potential quota-based arrangements to address this outstanding issue. Trade analysts note that while the agreement improves access for select goods, broader market access, particularly for services, remains unresolved.

Some Conservative figures criticise the agreement’s limited scope, arguing that more favorable terms were possible. Former Trade Secretary Kemi Badenoch states that the deal reflects a missed opportunity to negotiate wider access and regulatory alignment, contrasting it with more expansive negotiations under previous leadership. Free trade advocates also raise concerns about the lack of progress on mutual standards and dispute resolution mechanisms.

European Union leaders, meanwhile, respond critically. French officials describe the agreement as undermining EU leverage, while German representatives warn of potential economic consequences. The EU’s approach has centered on coordinated retaliation to US tariffs, in contrast to the UK’s decision to pursue direct engagement with Washington.

Observers point out that the UK’s independent trade policy allowed it to act with greater flexibility than the EU bloc, which remains bound by complex internal processes. Trump praises Starmer’s direct style and describes the UK as “very well protected,” citing Britain’s decision to leave the EU as a key factor enabling the deal.

The UK–US trade agreement, while modest in scope, marks a shift in strategy and reinforces Britain’s commitment to global partnerships. Future negotiations are expected to build on this foundation and seek more comprehensive terms.