Trump and Starmer agree to begin work on new US-UK trade deal

Donald Trump and Sir Keir Starmer agreed to begin work on a new US-UK trade deal after the Prime Minister dangled the carrot of an unprecedented second state visit to woo the US president.

After a dramatic day at the White House, Sir Keir said the two leaders had decided “to begin work on a new economic deal with advanced technology at its core”.

The president, who is set to impose a 25% import tax on UK steel in March, said if there was a trade deal “we could very well end up with a real trade deal where the tariffs wouldn’t be necessary”.

Before talks between the two sides, the Prime Minister presented the royal-loving US president with a letter from the King inviting him for a historic second state visit.

The letter, marked “private and confidential”, invited him to the UK, with talks ahead of the formal state visit to discuss logistics and a potential programme.

The letter, signed by Charles, said that “this is unprecedented by a US President”.

“That is why I would find it helpful for us to be able to discuss, together, a range of options for location and programme content,” it added.

‘Special’

Sir Keir described the letter as “really special” and said the move “symbolises the strength of the relationship between us”.

Before the White House talks, the transatlantic relationship appeared to have come under strain in recent weeks following Mr Trump’s interventions on Ukraine – including calling its president Volodymyr Zelensky a dictator – and the threats of tariffs.

But instead the US president:

– Praised Sir Keir as a “tough negotiator”, saying he had tried to talk him out of tariffs and “I think there’s a very good chance that in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary”.

– Suggested Sir Keir’s plans to give up sovereignty over the Chagos Islands and lease back the UK-US Diego Garcia base would “work out well”.

– Pledged to “always be with the British” if they deployed peacekeepers in Ukraine, although he stopped short of confirming the US security “backstop” called for by Sir Keir.

At a closing press conference following their talks, Sir Keir set out the plans for a “new economic deal”, especially on technology.

“Instead of over-regulating these new technologies, we’re seizing the opportunities that they offer,” he said.

“Our two nations together shaped the great technological innovations of the last century. We have a chance now to do the same for the 21st century.

“I mean, artificial intelligence could cure cancer. That could be a moonshot for our age, and that’s how we’ll keep delivering for our people.”

Sanctions

Mr Trump has said he will “have to take a look” at whether there will be any trade sanctions on the UK.

Mr Trump said: “I can say that … we’re here for a different reason – we’re talking about a very different place.

“I have investments there, I own Turnberry, I own Aberdeen, and I own a great place called Doonbeg in Ireland.

“So, I have a great warm spot for your country.”

Sir Keir said: “Our trade, obviously, is fair and balanced and, in fact, you’ve got a bit of surplus”