President Donald Trump and Prime Minister Sir Keir Starmer have unveiled a limited US-UK trade agreement, in what Downing Street described as “a pragmatic foundation” for a broader economic partnership.
The modest deal, which trims tariffs on select goods while preserving 10 per cent duties on a range of key exports, is being seen in Westminster and Washington alike as a cautious political manoeuvre rather than a sweeping economic breakthrough.
After weeks of low-profile negotiations conducted amid simmering global trade tensions, the two leaders confirmed the pact during a joint press conference in Washington on Friday. Speaking at the White House Rose Garden, Mr Trump hailed the accord as a “fair and balanced step for both great nations” while Starmer, flanked by Foreign Secretary David Lammy and Trade Secretary Rachel Reeves, called it “a necessary beginning”.
The deal, which analysts have dubbed “mini-TAFTA” – a reference to the long-defunct Transatlantic Free Trade Agreement – reduces or eliminates tariffs on certain manufactured goods, pharmaceuticals, and some agricultural products. However, several of the most politically sensitive levies, including those on steel, cars, and dairy, remain intact.
“This is not a full free trade agreement,” admitted a senior official in the Department for Business and Trade. “But it sends a signal that the era of post-Brexit estrangement between London and Washington is over.”
Gone are the lofty ambitions of the Boris Johnson era, when officials touted the prospect of a comprehensive UK-US trade deal as one of the chief dividends of Brexit. That optimism faded as political tides turned in both countries – not least with the return of Donald Trump to the White House in January and Labour’s landslide victory in July 2024.
Mr Trump, reprising his “America First” agenda, has shown little appetite for sweeping trade liberalisation, particularly where it could impact American manufacturing jobs. Sir Keir, for his part, has been keen to avoid rekindling bitter debates over Brexit by reopening the issue of UK regulatory alignment with American standards.
“There are obvious limits to what we can achieve given our domestic priorities,” Starmer said on Friday. “But this deal helps British exporters, supports jobs, and lays the groundwork for deeper cooperation.”
Critics on both sides of the Atlantic were quick to dismiss the agreement as largely symbolic. Former trade minister Penny Mordaunt called it “underwhelming”, while Labour backbenchers expressed concerns about the lack of parliamentary scrutiny.
Others, however, argue that symbolism is precisely the point. “This deal isn’t about trade volumes – it’s about diplomacy,” said Sir Ivan Rogers, the UK’s former ambassador to the EU. “Starmer wants to show he can manage a mature relationship with Trump, and Trump wants a win he can frame as pro-American.”
Indeed, the timing of the agreement may be as significant as its contents. It comes at a moment when Washington and London are recalibrating their foreign policy positions – especially on China, Ukraine, and the Middle East – and seeking to present a united front amid renewed instability in Europe and the Pacific.
Though Starmer has avoided overt criticism of President Trump, his government has subtly distanced itself from the populist rhetoric of past UK leaders. Officials close to No 10 say that the Prime Minister is determined to rebuild trust with traditional allies while quietly pushing back against protectionist impulses.
The trade pact is expected to benefit British pharmaceutical firms, small manufacturers, and some high-end agricultural exporters, while offering US firms improved access to UK procurement markets. However, the overall economic impact is likely to be marginal.
Even so, business groups welcomed the move. Shevaun Haviland, Director-General of the British Chambers of Commerce, called it “a welcome first step toward reducing red tape and boosting transatlantic commerce.” The CBI echoed those sentiments but urged the Government to push for more ambitious terms in future talks.
Insiders suggest that a second phase of negotiations could begin later this year, focusing on digital services, financial regulation, and mutual recognition of standards. But progress will depend on domestic politics in both capitals – and on whether either leader sees strategic value in deepening the relationship further.
For now, though, the agreement allows both men to claim a modest victory: Starmer, as a sober steward of British interests abroad, and Trump, as a protector of American industry willing to make deals on his terms.
Whether the transatlantic “special relationship” is truly back on track remains to be seen. But after years of drift and discord, the message from Washington and London is clear: the conversation, at least, has resumed.
Image:GROK.
