What's happened
On May 8, 2025, President Trump and UK Prime Minister Keir Starmer announced a 'comprehensive' trade deal during a phone call from the Oval Office. The agreement aims to address tariffs imposed by Trump last month, but key details remain unresolved, including the 10% tariff on UK exports and potential exemptions for the film industry.
What's behind the headline?
Overview
The trade deal between the US and UK is framed as a significant achievement for both leaders, yet its substance raises questions about its true impact.
Key Points
- Tariff Structure: The deal maintains a 10% tariff on UK exports, which contradicts claims of being 'comprehensive'.
- Political Motivations: Both leaders are leveraging this agreement to bolster their domestic standing, with Starmer emphasizing historical ties and Trump seeking to showcase his deal-making prowess.
- Future Negotiations: The absence of guarantees for the UK film industry and other sectors indicates that further negotiations will be necessary, potentially complicating the relationship.
Implications
- Economic Impact: While the deal may provide some relief, analysts suggest it could leave the UK worse off than before the tariffs were imposed.
- Public Perception: The framing of the deal as a major success may serve to distract from the ongoing economic challenges both countries face.
What the papers say
The Independent reported that Trump described the agreement as a 'full and comprehensive' one, despite the ongoing tariffs, while The Mirror highlighted the lack of assurances for the UK's film industry. Richard Hall from The Independent noted the irony of the deal being with a country that has a trade surplus with the US, suggesting it was an easy target for Trump's administration. The Scotsman pointed out the surprise nature of the announcement, given the need for Congressional approval for trade agreements. Overall, the coverage reflects a mix of optimism and skepticism regarding the deal's actual benefits.
How we got here
The trade deal follows Trump's recent 'Liberation Day' tariffs, which imposed a 10% levy on UK exports and a 25% charge on steel and cars. Starmer has prioritized securing a trade agreement to mitigate these impacts since the UK left the EU in 2020.
Go deeper
- What are the main points of the trade deal?
- How will this affect UK exports?
- What are the next steps for negotiations?
More on these topics
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Howard William Lutnick is an American billionaire businessman, who succeeded Bernard Gerald Cantor as the head of Cantor Fitzgerald. Lutnick is the chairman and CEO of Cantor Fitzgerald and BGC Partners.