UK-US trade deal live: Trump slashes tariffs on steel and cars in historic agreement

Responding to confirmation that the UK government has agreed a deal on tariffs with the US, Naomi Smith, Chief Executive of Best for Britain, which campaigns for closer EU-UK ties, said:

“Chaotic and lacking detail, today’s announcement neatly demonstrates why trade with Trump’s erratic and unpredictable administration should be treated with extreme caution.

“Independent economic analysis shows that a common sense deal with our closest market can drive real growth rather than just limiting damage and our polling shows voters in every constituency in Britain, from Clacton to Newport, want the government to prioritise trade with our more reliable partners in Europe over Trump’s USA.”

Ariana Baio in New York and Eric Garcia in Washington, D.C. report on this morning’s announcement.

The UK beer industry has poured cold water on the government’s claim that ethanol — which has seen its tariffs slashed — is “used to produce beer.”

Ethanol is a by-product of the beer-making process and is only an ingredient for spirits, despite the government’s press release outlining the details of the deal saying otherwise.

A spokesperson for the British Beer and Pub Association said they “cannot see how [the deal] is a win for brewers or pubs”.

They said: “We are urgently seeking clarity about the details of the deal as, given ethanol is not used to make beer, we cannot see how this is a win for brewers or pubs.

“We continue to urge Government to focus on securing a trade deal that boosts the sector and doesn’t penalise British beer, which brings so much to our economy and job market.”

Prime minister Sir Keir Starmer said he had discussions last night with Donald Trump about the trade deal, and he and the president respect and trust each other.

Asked about any assurances he could give to businesses that the deal would not be ripped up by the US, Sir Keir said: “We’ve been negotiating this text for a long time. I had discussions with Donald Trump along the way, including discussions last night. We’re clearly in agreement.”

He said there was a written text that would be available and the agreement was absolutely clear.

Sir Keir added: “We’ve worked well together, we respect each other, the President and I, and we trust each other, and have trusted each other through this process.”

US president Donald Trump announced his new trade with the United Kingdom with huge fanfare, writes Eric Garcia, Washington bureau chief.

But it’s important to remember what it’s not: It’s not a major trade agreement with someone whom Trump has claimed has been “ripping off” the United States like China, South Korea or Japan.

The deal is also with a country that had virtually no trade deficit with the United States.

It also is not even a full reprieve for the British. As Commerce Secretary Howard Lutnick said, the 10 per cent tariffs will remain in place for the United Kingdom.

As UK ambassador to the United Kingdom Peter Mandelson said, “For us it’s not the end, it’s just the end of the beginning.”

British Prime Minister Sir Keir Starmer has upped the charm offensive with Trump. But it’s far from what is needed.

The deal with the US puts the UK in a better position that it was in yesterday, the Prime Minister claimed, and many thousands of jobs will now be protected, saved and enhanced.

Sir Keir Starmer said: “What this does is to reduce to zero the tariffs on steel and aluminium. Look how important that is. Reduces massively from 27.5% to 10% the tariffs on the cars that we export, so important to JLR (Jaguar Land Rover), actually to the sector generally, but JLR in particular, who sell so many cars into the American market, proudly do that.

“Of course, it also includes pharmaceuticals, some really important measures. Obviously, we don’t have tariffs yet, but we’ve got within the deal significantly preferential treatment whatever happens in the future. So this is hugely important for our pharmaceutical sector as well.

“In addition to that, we said we had red lines on standards, particularly in agriculture. We’ve kept to those standards. The SPS (santitary and phytosanitary) red line is a red line that is written into the agreement.”

Opposition leader Kemi Badenoch claimed that the UK had been “shafted” by the government’s deal with the US.

Conservative leaader Mrs Badenoch said: “When Labour negotiates, Britain loses.

“We cut our tariffs — America tripled theirs.

“Keir Starmer called this ‘historic.’ It’s not historic, we’ve just been shafted!”

Prime minister Sir Keir Starmer has said that “tariff cuts will come into place as soon as possible”.

The announcement was “just the start” and the countries were “hammering out” further details with the US, he said.

“I also want to be clear, this is just the start with the deal we’ve done today.

“We can say jobs saved, jobs won, not job done, because we’re more ambitious for what the UK and the US can do together,” he said.

“So we’re hammering out further details to reduce barriers to trade with the United States, across the board.”

After a tumultuous few weeks since President Donald Trump announced his tariffs on America’s trading partners, Wall Street is reacting favourably to news of the UK-US trade deal.

The Dow Jones Industrial Average jumped more than 400 points (1%) in mid-morning trading, while the S&P 500 rose 50 points (1%), and the tech-heavy Nasdaq was up almost 220 points (1.22%).

The deal with the UK is being touted as the first of many to come, with traders keen to know the fine print beyond the agreement’s headlines announced in the Oval Office this morning.

“The (proposed) trade deal with the UK is the first announced framework of a deal… after we get some of the details, we’ll have a template for what other trade deals may look like,” said Art Hogan, chief market strategist at B Riley Wealth.