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Britain will be left “shafted” by Sir Keir Starmer’s new trade deal with the US, Kemi Badenoch has warned.
The Tory leader made the remarks after a phone call between the Prime Minister and Donald Trump on Thursday afternoon, confirming an agreement had been reached.
During the call, Mr Trump described the UK as “truly one of our great allies” and insisted it was a good deal for the two nations.
But Mrs Badenoch noted that UK tariffs on the US were previously 5.1 per cent and have now been updated to 1.8 per cent, whereas US tariffs on the UK stood at 3.4 per cent and have increased to the universal 10 per cent applied to all countries.
She 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!”
In an interview with ITV, Mrs Badenoch added: “This is not a free trade agreement, this is not what we were signing. What’s happened is a small tariff deal to fix some of the changes which Donald Trump made last month.
“Calling it a historic deal is trying to sell people a pup... We are now in a worse position than we were in March.”
Deal possible after Brexit
Speaking in the Oval Office, Mr Trump said the deal was only possible because of Brexit.
He said: “This was separate because of Brexit in particular. It always seemed so natural. This deal just fell into place. The Prime Minister did a fantastic job.
“His representatives are total professionals, and they got along well, and it just seemed to work.”
In a press conference at a Jaguar Land Rover manufacturing plant, Sir Keir said. “We are the first country to secure such a deal with the United States and in an era with global insecurity and instability that is so important.”
He added: “Our history shows what we can achieve when we work together and what timing for this deal, that we’ve agreed this deal on VE Day.
“Eighty years ago, Churchill was addressing the nation at the end of the Second World War, victory in Europe, and we were standing with the United States as the United Kingdom on defence and security... And today we’ve added to that the economy and trade in the special relationship.
“So it’s particularly fitting that today we renew the bond on the 80th anniversary on VE Day.”
08:08 PM BST
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07:46 PM BST
Daily T: How Trump and Starmer sealed it
Has Keir Starmer finally got something right?
Camilla Tominey and Kamal Ahmed look at the pros and cons of the UK-US trade deal on today’s episode of the Daily T.
07:23 PM BST
‘Starmer must go further’, says JCB
JCB has called for reciprocal tariffs to be removed on all traded goods between the UK and the US.
The manufacturing giant welcomed the trade deal but urged the Government to continue negotiations with the US to lower tariffs further.
JCB chief executive Graeme Macdonald said: “Today’s developments are good news for certain industries and we welcome today’s news, but let this be the start of the negotiations, not the end.
“Let’s move onto stage two quickly and eliminate all reciprocal tariffs. It’s in the interests of all UK manufacturers, and ultimately, it’s in the national interest.”
07:16 PM BST
Sir Ed Davey questions trade deal
Sir Ed Davey says “lots of question” remain over the UK-US trade deal.
The Liberal Democrat leader asked: “Have the tariffs on our cars, on our steel, on our film industry, have they been got rid of?
“What’s going to happen to agricultural products? Have they reduced the standards? Have they allowed too much sub-quality American meat products into our country?
“What’s happened, for example, about online safety standards for our children? Are American private healthcare firms going to be allowed in?”
“We’ve got lots of questions,” he added.
06:45 PM BST
‘No concessions on NHS’
The Business Secretary added that the trade agreement does not include any concessions on the NHS.
Mr Reynolds said: “Just to be absolutely clear about what is not in this agreement. There is nothing in this agreement in relation to online harms or the Online Safety Act. There’s nothing in this agreement in relation to digital services tax. Nothing in the agreement in relation to the NHS.”
06:30 PM BST
Business Secretary: Deal will include ‘national security’ provisions
Jonathan Reynolds, the Business Secretary, said the deal would also include “national security” provisions relating to “third countries”, which are understood to be directed at China.
Mr Reynolds told reporters that the deal “commits to cooperation and coordination on non-market practices from third countries, and to cooperation and coordination on export controls and investment security”.
He added: “To state the obvious, we have shared national security priorities with the US. We have the same interest in the same outcomes.
“In relation to that, it’s particularly appropriate to be able to agree that with the US on the 80th anniversary of VE Day, great. There’s symbolism there.”
It is understood Mr Reynolds was referring to measures preventing China from using the UK market to circumvent high tariffs on Chinese goods. The UK will also be required to coordinate action with the US on “dumping” of goods in Britain.
06:28 PM BST
‘Trump has completely outmanoeuvred Keir Starmer’
On the 80th anniversary of VE Day, the alliance between Britain and America is once again in the spotlight.
Sir Keir Starmer has struck a trade deal with Donald Trump – not a phrase many people would have seen coming this time last year – turning the chaos of April’s “Liberation Day” tariffs into a golden opportunity for the United Kingdom. Britain, and not Brussels, is first in line for a “full and comprehensive” trade deal. Stick that one in your pipe, Obama.
At least, that’s the story Sir Keir Starmer will undoubtedly try to sell. One of the most ardent Remainers reformed as a buccaneering Brexiteer, signing deals with India and the US in his first year in office.
At this point, however, a slightly more sober assessment is warranted. April’s tariffs were set to be highly damaging, and it’s good that we’ve managed to limit their impact. It’s also the case that we’re still far worse off than we were in March.
Sam Ashworth-Hayes: This isn’t a triumph, it’s partial relief
06:10 PM BST
Badenoch: Starmer has sold Britain a pup
Britain will be left “shafted” by Sir Keir Starmer’s new trade deal with the US, Kemi Badenoch has warned.
The Tory leader made the remarks after a phone call between Sir Keir and Donald Trump on Thursday afternoon confirming an agreement had been reached.
In a phone call between the president and the Prime Minister, Mr Trump described the UK as “truly one of our great allies” and insisted it was a good deal for both countries.
But Mrs Badenoch noted UK tariffs on the US were 5.1 per cent and are now 1.8 per cent, while US tariffs on the UK were 3.4 per cent and now are the universal 10 per cent applied to all countries.
She 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!”
In an interview with ITV, Mrs Badenoch added: “This is not a free trade agreement, this is not what we were signing. What’s happened is a small tariff deal to fix some of the changes which Donald Trump made last month.
“Calling it a historic deal is trying to sell people a pup... We are now in a worse position than we were in March.”
05:43 PM BST
City reaction to the deal subdued
The City’s reaction to the trade deal was subdued, with FTSE 100 ending the day down 0.3pc. The FTSE 250, which includes companies more focused on the domestic UK economy, finished up 0.6pc.
Kathleen Brooks, of stockbroker XTB, said: “The markets may be a little disappointed that the scope of this deal is narrow, but it also suggests that, as yet, the market has not been spooked by the 10pc tariff rate that is set to remain in place.”
Wall Street was more impressed, with the S&P 500 and Dow Jones jumping by 1.4pc. Its tech-focused Nasdaq surged 1.8pc. Analysts said Donald Trump’s deal with the UK could signal an encouraging start for trade negotiations globally.
05:32 PM BST
Trump saying Brexit was key to getting deal with the US
Credit: Reuters
05:15 PM BST
Aston Martin shares surge after trade deal
Shares in luxury carmaker Aston Martin surged 14pc this afternoon after the US agreed to lower tariffs on British cars.
The carmarker, which gets more than a third of its revenue from America, had warned investors that it was limiting exports to the US as a result of the trade war.
Mike Hawes, the head of Britain’s Society of Motor Manufacturers and Traders (SMMT) said: “The application of these tariffs was a severe and immediate threat to UK automotive exporters so this deal will provide much needed relief, allowing both the industry, and those that work in it, to approach the future more positively.
05:08 PM BST
UK to unveil £10bn order for Boeing planes
The US commerce secretary announced a British airline is set to unveil a $10bn order for Boeing planes, writes Samuel Montgomery.
Speaking after the phone call between Donald Trump and Sir Keir Starmer, Howard Lutnick said: “There’s going to be an announcement in the UK that they are buying $10 billion worth of Boeing planes later today.
“But I’m going to let the name of the airline announce it because that’s theirs to do.”
The White House’s graphic with the broad terms of the trade deal referred to $10bn in “aircraft parts” purchases. Engines and plane parts from Rolls-Royce will be able to enter the US market tariff free and a British airline will buy $10bn worth of Boeing planes, Lutnick said, without naming the carrier.
Virgin, which operates Boeing planes, has ruled itself out of contention. The American aircraft manufacturer has been caught in the tariff crossfire, saying last month that it was looking to resell potentially dozens of aircraft.
Boeing shares jumped 4pc on the news.
05:00 PM BST
Watch: Starmer thanks Trump for US-UK trade deal
Credit: Reuters/PA
05:00 PM BST
NFU: This is not something anybody wanted
National Farmers Union president Tom Bradshaw said: “We find ourselves in this position as a direct result of tariffs introduced by the US administration in April. This is not something anybody wanted.
“Since then, we have worked tirelessly on behalf of British agriculture, engaging closely with the UK government to ensure our farmers receive a fair and balanced outcome within this deal and that the public is not exposed to lower standard produce.
“We appreciate the government’s efforts in listening to our concerns, particularly around maintaining high standards, protecting sensitive agricultural sectors and securing reciprocal access for beef.
“For several years, we’ve campaigned with the UK’s agricultural attachés in Washington for market access for British beef, a product globally respected for its quality and strong environmental credentials. These efforts have contributed to enabling the UK government to secure ring-fenced access for British beef exports to the US.
“However, the inclusion of a significant volume of bioethanol in the deal raises concerns for British arable farmers. We’ll be engaging closely with our members to help them understand and prepare for the potential impact.
“Our biggest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of the removal of tariffs for other industries in the economy. While we understand this, we also know that today is the start, not the end, of a process and UK agriculture cannot continue to shoulder such imbalances in future negotiations.”
04:56 PM BST
Trump: I’m not concerned about Britain’s China ties
Donald Trump said he was not concerned about Britain’s relationship with China.
Questioned by The Telegraph’s Rob Crilly in the Oval Office, the US president siad “wouldn’t even be here right now if I was concerned about anything.”
He added: “We’re going to have, I believe, a very good relationship with China and a fair relationship, and it’ll get bigger, and it’ll grow. It’ll grow.”
04:44 PM BST
Digital services tax will stay in place, says Government
The Government said Britain’s digital services tax, imposed on US companies such as Amazon, Google and Meta, will not be changed under the terms of the US trade deal, writes Samuel Montgomery.
Donald Trump has been strongly critical of digital services taxes, which have been introduced by around 20 countries, saying they were “designed to plunder American companies”.
Britain’s tax is levied at 2pc of the revenue earned by big tech companies in the country.
The British government said in a statement: “The Digital Services Tax remains unchanged as part of today’s deal.
“Instead the two nations have agreed to work on a digital trade deal that will strip back paperwork for British firms trying to export to the US - opening the UK up to a huge market that will put rocket boosters on the UK economy.”
04:42 PM BST
Rubio: This is an important step to fair trade
The US secretary of state Marco Rubio hailed the UK trade deal as “an important step towards fair and reciprocal trade” across the world, writes Cameron Henderson.
04:40 PM BST
Starmer: I talked to Trump during last night’s Arsenal match
Sir Keir Starmer has just revealed he was forced to tear his eyes from last night’s dramatic Arsenal game to take that all-important call from Donald Trump, writes Amy Gibbons.
He was probably pleased to miss the second half of the match, where his favourite team was knocked out in the final stages of the Champions League.
But while there will be no trophy for Arsenal, the Prime Minister secured a prize of his own from the US president.
It perfectly encapsulates the clash between Sir Keir’s personal and political lives, with the avid football fan now playing on the world stage.
Sir Keir said he “didn’t know the exact day” of the trade deal, adding: “I wouldn’t have been having my phone call with President Trump during the second half of the Arsenal-PSG game had I planned it better.
“But that’s the way it turned out... and I’m really pleased to be able to come here today, and to be able to do it on VE Day is really significant.”
04:39 PM BST
Starmer: This deal is worth thousands of well-paid jobs
Sir Keir Starmer was asked about his strategy to get 10 per cent tariffs down to zero.
The Prime Minister said: “I will approach negotiations in the same way I have approached negotiations with India and with President Trump to get to today’s deal.
“With India I met prime minister Modi at the G20 in Brazil, we agreed that we would get our teams to work together at pace in a respectful, courteous, business-like way, with President Trump we’ve operated in the same way... The same with the EU, respectfully negotiating in relation to the summit we’ll have a week on Monday.
“So we’ll do it exactly the same way, but please do not underestimate the significance of the tariff reductions today because these are measured in thousands of well-paid jobs across the country. I believe in serious, pragmatic, in-the-room negotiations are far better than performative politics... being performative but not actually delivering for working people and I’ll continue in the same vein.”
04:37 PM BST
Griffith appears to break ranks with Badenoch
Andrew Griffith, the Conservative shadow trade secretary, appeared to disagree with Kemi Badenoch by welcoming the deal, writes Tony Diver.
“The reduction in tariffs announced today will be welcomed by exporting businesses,” he said. “The ability to strike our own free deals is a Brexit benefit and I hope this moves us conclusively into an era where this government is committed to preserve that freedom.
“Conservatives have been consistent in their support for trade agreements and the reduction of tariffs and today is the continuation of a process which started under the first Trump presidency.
“But British businesses need to hear more details about the deal which has been agreed and for the government taking actions to support business such as shelving the devastating Employment Rights Bill and reducing the UK’s uncompetitively high energy costs.”
A source close to Mr Griffith said there was no division between him and Ms Badenoch on the deal. Speaking in the Commons chamber later, he described it as a “Diet Coke deal” that was “not the real thing”.
04:36 PM BST
This agreement is fixed in writing, insists Starmer
Sir Keir Starmer was told Donald Trump was “no stranger to changing his mind on a whim”.
“We’ve been negotiating this text for a long time,” Sir Keir replied. “I had discussions with Donald Trump along the way including discussions last night. There is a written text, this is in writing, so this is an agreement that is absolutely clear.
“We’ve worked well together, we respect each other, the president and I, and we trust each other, we’ve trusted each other in the process.”
04:35 PM BST
‘Significant relief’ for automotive sector
Philipp Sayler von Amende, chief commercial officer at Carwow, said the deal was “a significant relief for the British automotive sector”, writes Oscar Williams-Grut.
However, he added: “While the new 10pc levy offers vital breathing room, the deal remains limited to a quota of 100,000 vehicles, though with potential for future expansion.”
04:34 PM BST
Starmer: I have Britain’s national interest in mind
Sir Keir Starmer was asked if he was disappointed by not securing a trade deal where tariffs were “not necessary” as Donald Trump had indicated if possible, as well as being asked about the local election results.
“We absolutely get the message that they sent on Thursday, and we will remain focused as ever on the national interest.
“And I have them in mind, I have the workforce here in mind, when I make these decisions, I don’t make them for my sake, I make them on behalf of working people across this country.”
He added: “In relation to this deal, yes, we would like to go further in relation to tariffs but I think it’s really important that we’ve been able to get this deal over the line now. Because in that way we’ve been able to protect, save and enhance jobs right here right now and that reduction from 27.5 per cent to 10 per cent makes a huge difference to firms like JLR and decisions they have to make about the future.”
04:32 PM BST
Trump: This deal was possible ‘because of Brexit’
Donald Trump said the European Union treated the US “extremely unfairly”, and claimed the trade deal between the US and UK was possible “because of Brexit”.
The US president told reporters: “The European Union treated us extremely unfairly... and hurt themselves in doing so.
“They very much want to make a deal. We’ll be dealing with them. We are dealing with them currently. This was separate because of Brexit in particular.”
Mr Trump added: “It always seemed so natural. This deal just fell into place. The Prime Minister did a fantastic job. His representatives are total professionals, and they got along well, and it just seemed to work.”
04:32 PM BST
Starmer: I don’t have to choose between US and EU
“Minutes after this deal with the US, you’re already pushing me back to shouldn’t we choose between the US and the EU, no is the answer to that question.
“I genuinely believe we can have a good relationship and agreement with the US and a good relationship and a good agreement with the EU.
“Look what we’ve shown this week through patience, through pragmatism, and not doing politics as performance, doing politics as the serious art of negotiation.”
04:30 PM BST
Badenoch: Britain has been ‘shafted’ by this deal
Tory leader Kemi Badenoch said Britain has been “shafted” by the deal, writes Daniel Martin.
She wrote on X: “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!”
04:30 PM BST
We’re in a far better place than yesterday, insists PM
Sir Keir Starmer is now taking questions from the media.
The Prime Minister was asked if things were better than six months ago considering some tariffs are still there, and replied: “The question you should be asking is is it better than where we were yesterday? And I think you should come out when you finish asking your questions and talk to your workforce here.
“Because what this does is it reduces to zero the tariffs on steel and aluminium, look at how important that is, it reduces massively from 27.5 per cent to 10 per cent the tariffs on the cars that we export, so important to JLR, actually generally but JLR sell so many cars to the American markets.
“It also includes on pharmaceuticals some really important measures. Obviously we don’t have tariffs yet but we have in the deal significantly preferential treatment.
“We said we had red lines on standards, particularly on agriculture, we’ve kept to those, the SPS red line is one written into our agreement.”
04:27 PM BST
Keir Starmer: Our history shows what UK and US can do together
“Our history shows what we can achieve when we work together and what timing for this deal, that we’ve agreed this deal on VE Day.
“Eighty years ago Churchill was addressing the nation at the end of the Second World War, victory in Europe, and we were standing with the United States as the United Kingdom on defence and security... And today we’ve added to that defence and security in the special relationship.
“So it’s particularly fitting that today we renew the bond on the 80th anniversary on VE Day.”
04:25 PM BST
Starmer: We’re sending a message that Britain is open for business
“We are the first country to secure such a deal with the United States and in an era with global insecurity and instability that is so important.
“If it’s not good for Britain, we won’t do it, if it doesn’t mean more money in people’s pockets, we won’t do it, if it doesn’t mean security and renewal in every part of the country, we won’t do it.
“That doesn’t mean we’re turning inwards, we’re sending a message to the world that Britain is open for business, striking trade agreements with India on Tuesday, with the US today and working to boost trade with other partners too, including of course the EU with whom we have a really important meeting a week on Monday.
“Trade deals will benefit working people. In recent years an idea has taken hold that you somehow show your strength by rejecting your allies, that you shut the door, put the phone down, storm off, I’ve had plenty of people urging me to do that, rather than stay in the room and fight for the interests of our country. I want to be absolutely crystal clear that that is not how this Government operates... We don’t storm off, we stay in the room and we negotiate with our national interest foremost at our heart.”
04:22 PM BST
Press pack sent to wrong place
Sir Keir Starmer is hoping his new deal with Donald Trump will take the UK in the right direction, writes Amy Gibbons.
But No 10 started off on the wrong foot this afternoon when they sent the entire media pack to the wrong location for the PM’s speech.
Around a dozen reporters were stranded roughly half an hour away from the site after being sent to the wrong Jaguar-Land Rover branch.
Downing Street had asked the media to arrive at the Whitley offices, on the outskirts of Coventry, no later than 2.45pm in time for the PM’s speech at 4pm. In fact, they were meant to be around 15 miles up the road, at a different branch in Solihull.
There was even more confusion at the second site, where taxis were dropping people off at the wrong side of a huge campus.
Reporters were calling it “race across the West Midlands”. And we’re only just getting off the starting line.
04:18 PM BST
Trump: This is a ‘maxed out’ deal
Donald Trump told reporters: “I think it’s a great deal for both parties. I didn’t know how closed it was, quite closed as you know the UK, and it opens up a tremendous market for us and works out very well.
“In the first term it was people talking but they wouldn’t get it done. For the past 25 years they were trying to make a deal, a very significant deal... This is a very conclusive deal but we think we can grow it from that. This is a maxed out deal, this is not like you said it, really incorrectly.
“This is a maxed out deal that we’re going to make bigger and we make it bigger through growth... I was surprised to see how big your country is in trade, actually.”
Mr Trump said there would be “changes made and adjustments made” where things could be done “even better”.
04:15 PM BST
White House board boasts of ‘unprecedented access to UK market’
04:15 PM BST
You’ve been true to your word, Mandelson tells Trump
Lord Mandelson thanked Donald Trump for hosting him, adding: “Thank you very much indeed for that typical 11th-hour intervention by you with your phone call to the President demanding even more out of this deal than any of us expected...
“You took it to another level and I think the point I would make is twofold. One is if we’re going to rebalance and rebuild international trade in a way that serves all our interests, then we’re better doing that better separately than apart, but secondly you’ve done what you’d said you’d do.
“You said to the Prime Minister when he came, when he visited in the Oval, that you would do a good deal with the United Kingdom, that you would do it at pace, and we would be first, and you’ve been true to your word.
“For us it’s not the end, it’s the end of just the beginning. There is yet more we can do in reducing tariffs and trade barriers to open our markets up to each other even more than we’re agreeing to do today, but it provides us with the background to do what I think will be valuable to both our countries... and that’s creating a technology partnership between the United States and the United Kingdom.”
04:12 PM BST
Stock markets give little initial reaction
Stock markets gave little reaction to Donald Trump’s announcement of a trade deal with Britain, which the US president said would be “written up in the coming weeks”, writes Chris Price.
The FTSE 100 was down 0.4pc to 8,526.05 and on track for a second straight day of losses, while the mid-cap FTSE 250 gave up gains of as much as 1.2pc to stand 0.4pc higher.
Wall Street stocks were also up at a much more measured pace, with the S&P 500 and Nasdaq Composite both rising about 0.4pc having earlier jumped as much as 0.7pc and 1.1pc, respectively.
On the currency markets, the pound was 0.1pc higher at just over $1.33.
On bond markets, the cost of government borrowing moved higher, having been influenced by traders scaling back bets on more interest rate cuts by the Bank of England.
04:11 PM BST
Analysis: This did not feel like a polished media moment
Downing Street denies that this announcement was put together in a rush, writes Tony Diver.
But the bizarre way that Donald Trump and Sir Keir Starmer just announced their agreement on the phone in front of the world’s cameras did not feel like a polished media moment.
Mr Trump spoke on speaker phone from the Resolute Desk in the Oval Office, while Sir Keir used a phone in the car manufacturing plant he is visiting this afternoon.
Behind Mr Trump were several of his Cabinet members, including the agriculture and commerce secretaries, and the British ambassador, Lord Mandelson. TV stations were forced to run split screen footage of the pair speaking on the phone -- all before any of the details of the deal were made public. Now, both of them appear to be planning press conferences at the same time.
There is no denying that this is a coup for No10, but today’s announcement feels chaotic. This is diplomacy, Trump-style.
04:11 PM BST
Why Starmer’s concessions may anger British farmers
Sir Keir Starmer’s concessions on beef imports may anger British farmers, who have previously warned allowing US meat to flood the market would be an “unimaginable failure”, writes James Warrington.
The Telegraph understands that tariffs on American beef will be cut to zero as part of a 12-month temporary arrangement, though hormone-treated beef will not be allowed into the UK.
It comes just a day after Tom Bradshaw, president of the National Farmers Union, said: “A deal in which we open our markets to US produce in return for nothing more than the reduction or removal of tariffs which didn’t exist eight weeks ago would be an unimaginable failure and is not a deal in anything but name.”
He added: “In any trade deal with the US, ministers must uphold their commitments and ensure that food that would be illegal to produce here from a food safety, animal welfare or environmental perspective is not granted access to our market.
“But it’s equally vital to understand that whilst protecting UK food safety standards is essential, that can’t be top cover for a deal which gives US agriculture the access to UK markets it has sought for decades without giving UK farmers and growers reciprocal access back.”
04:09 PM BST
Trump: It’s going to be great
Donald Trump said: “It’s just been a deal that we thought was very complicated, it became very simple. It’s opening the country that we really didn’t have the access to that I would have thought, I was surprised.
“I think it’s why the deal didn’t get done before, they’ve been working on this deal for 25 years and we got it done, it’s going to be great.”
Mr Trump squeezed Lord Mandelson’s hand before saying: “It’s a very large deal, a very great deal.”
04:08 PM BST
Starmer and Trump: We’ve achieved what people tried to for years
Donald Trump said: “Mr Prime Minister thank you very much, it’s an honour, we’re going to have a continued, maybe a better relationship than ever before.
“I don’t know if the media knows, the US and UK have been working for years to try and make a deal, we never quite got there, it did with this Prime Minister so I want to just congratulate you.”
Sir Keir Starmer replied: “With this President and this Prime Minister we’ve managed to achieve what many people have tried to achieve for years... It feels completely historic and on a special 80-year anniversary as well, so Donald thank you so much, it’s really good to have got this deal over the line, tribute to both teams, tribute to both countries and tribute to your leadership.”
Mr Trump said: “It really is a great thing, you go and do your press conference, I’ll see you soon and maybe speak to you later... For so many years everybody talked and talked and talked about a deal. It was not done but now it was done with us so I feel very proud to have been a part of it. Keir thank you very much.”
04:05 PM BST
Starmer: This is a truly historic day and timing couldn’t be more apt
Speaking on the phone to Donald Trump, Sir Keir Starmer said: “Thank you Mr President, Donald, and this is a really fantastic historic day in which we can announce this deal between our two great countries.
“And I think it’s a real tribute to the history that we have of working so closely together. Can I pay tribute Donald to your negotiating team, particularly Howard and Jameson who’ve done a terrific job, a very professional job.”
Sir Keir said the UK and US had been working “at pace”, adding: “Really important deal, this is going to boost trade across our countries, it’s going to not only protect jobs but create jobs, opening market access.
“And as you say Donald the timing couldn’t be more apt because not only was it 80 years ago today that victory came for Europe and at the end of the Second World War, but of course on that day the UK and the US stood together as the closest of allies.
“And Donald I think even down to the hour, because you may or may not know that it was about this time of day exactly 80 years ago that Winston Churchill announced victory in Europe and that led to great celebrations across Europe, across America but particularly in the United Kingdom, literally people coming out into the streets, putting bunting up and going up to the palace.
“So to be able to announce this great deal on the same day 80 years forward, almost at the same hour, and as we were 80 years ago with the UK and US standing side by side I think is incredibly important and truly historic... Now we take this into new and important territory by adding trade and the economy to the closeness of our relationship.
“It is built as you say on the notion of fairness... We’ve always had a fair and balanced trading relationship.”
04:02 PM BST
Trump hails ‘terrific’ Starmer and UK team
“Once again I wanna thank Prime Minister Starmer, he’s been terrific for his partnership in this matter. The special relationship and external bond, it’s really an external and internal bond between our two countries, will soon be stronger than ever before.
“And we really do, we have a great relationship, I just want to say that the representatives of the UK have been so professional and it’s been an honour doing business with all of them. And in particular the Prime Minister.”
04:00 PM BST
Trump: We will be ‘un-easing’ military and defence industries
Donald Trump continued: “It’s so good for both countries and we’ll also receive new market access for American chemicals, machinery and many other industrial products that weren’t allowed and they’ll end up getting products that they’ll be able to price, and they like them better.
“And we make great products, they’ll be buying those products, but they were not available in the UK. Furthermore in a historic step the deal includes plans that will bring the United Kingdom into the economic security alignment with the United States. That’s the first of its kind so we have a big economic security blanket and that’s very important.
“And we feel very, very comfortable with that because it’s been a great ally, truly one of our great allies, a lot of people say our greatest ally. I don’t want to insult people by saying that but I can say it’s certainly one of our greatest, right at the top and they’re the first one we’re talking about.
“And by the way we have many meetings planned today and tomorrow and every country wants to be making deals. And we have a meeting as you know Scott will be going over to Switzerland on Saturday, that’ll be very, very interesting, I think they want to make a deal very badly.
“Both countries have agreed that the economic security is national security and we’ll be working together as allies to ensure that we have a strong industrial base, appropriate export controls and protections for key technologies and industries like steel. Steel is a big factor, both countries will become stronger with steel and things necessary for military. We used to build ships and other things at a level that nobody’s ever seen and we’ve eased up but I would say the UK certainly eased up but now we’re going to be un-easing both as we work together.”
03:54 PM BST
Donald Trump’s words at the White House
“With this deal the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade.
“The deal includes billions of dollars of increased market access for American exports, especially for agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers and our Secretary of Agriculture as you know is here.
“In addition the UK will reduce or eliminate numerous non-tariffs barriers that unfairly discriminated against American products, but this is now turning out I think really to be a great deal for both countries because it will be really great for the UK also. So they’re opening up the country. Their country is a little closed and we appreciate that.
“They’ll also be fast-tracking American goods through their customs process so our exports go through a very, very quick form of approval. And there won’t be any red tape. Things are going to move very quickly both ways.
“The final details are being written up in the coming weeks, we’ll have it all very conclusive but the actual deal is a very conclusive one. We think just about everything’s been approved.”
03:46 PM BST
Not long now
Reporters are about to head into the Oval Office following some delays.
Donald Trump’s press conference about the deal is now just a few minutes away.
03:33 PM BST
Trump to cut tariffs on Range Rovers in deal with Starmer
The US will slash tariffs on Range Rovers and other UK-made cars to 10pc as part of Donald Trump’s trade deal with the UK, The Telegraph understands.
The reduction will form part of a 12-month “temporary arrangement” ahead of striking what Britain and the US hopes will be a comprehensive trade deal in the coming months.
In return, the UK and US will slash tariffs on beef imports and exports close to zero, although Britain will not allow hormone-treated beef into the UK as part of the deal.
Szu Ping Chan and Tim Wallace have more here
03:31 PM BST
Trump ‘weaker than he admits’, says Kwarteng
The US-UK trade deal shows Donald Trump is “weaker than he admits”, Kwasi Kwarteng has argued.
Writing in the i paper, the former chancellor said: “Behind the braggadocio, the hyperbole and the over the top salesmanship of Donald Trump, there lurks a President who is intensely concerned about his declining popularity and falling ratings.
“He is incredibly thin-skinned and needed to do something to dispel the growing idea that he is – the very worst thing in the world, in his imagination – a loser.
“The truth is that, after unleashing his trade war chaos only a few weeks ago, and then retreating while insisting on victory, Trump badly needed a success on trade.”
03:30 PM BST
What is Britain getting and what is it giving away?
As much as Jonathan Reynolds’ opponents will hate to admit, it has been a positive week for the Business and Trade Secretary. But it is only Thursday.
The ink on Britain’s landmark post-Brexit trade deal with India had hardly dried before the news broke that an agreement with the US was imminent.
Writing on Truth Social overnight, Donald Trump said it was a “great honour” to have the UK be the first trade deal signed with the United States, claiming it will be “full and comprehensive”.
The devil will, however, be in the detail. And notably, UK officials are already seeking to temper expectations.
03:15 PM BST
Slight delays
We are now expecting Donald Trump to announce the US-UK trade deal at closer to 3.30pm UK time.
02:42 PM BST
Trump and Starmer spoke last night
Sir Keir Starmer spoke by phone with Donald Trump on Wednesday night to sign off on the trade deal, after their negotiating teams reached a final agreement this week, a source familiar with the talks tells me.
02:34 PM BST
US stocks surge as Starmer and Trump prepare to unveil trade deal
Wall Street’s main stock indexes leapt higher at the start of trading in New York as Donald Trump prepares to unveil his new trade agreement with Britain.
The Dow Jones Industrial Average gained 0.6pc to 41,348.46 as trading began while the benchmark S&P 500 rose 0.7pc to 5,672.32.
The tech-heavy Nasdaq Composite index surged 1.1pc to 17,926.41 amid hopes the UK-US deal could clear the path for greater collaboration on artificial intelligence projects.
02:31 PM BST
Choreography of Oval Office trade deal announcement still TBC
British officials will have to be ready for Donald Trump’s unpredictability in the Oval Office this afternoon.
A Trump administration official said reporters should expect to hear from Sir Keir Starmer during today’s announcement, but wouldn’t specify whether there would be a phone call or a video link.
It is understood that the exact arrangements are uncertain and may depend on Mr Trump’s mood in the moment. Planning has gone back and forth over the idea without it being nailed down.
The British team is going to have to be ready for anything.
02:22 PM BST
EU hunkers down for trade war with US
As post-Brexit Britain prepares to ink a trade deal with the Trump White House, over in Brussels the European Union is hunkering down for a trade war, writes Hans van Leeuwen.
The European Commission has released a list of potential retaliatory measures against Donald Trump’s “unjustified and harmful” tariffs. The EU countermeasures cover imports from the US worth €95 billion, and would also restrict European exports to America worth another €4.4 billion.
The hit list includes a swathe of agricultural products and processed foods, wine and spirits, chemicals, and manufactured goods. The list now goes to a one-month consultation period with affected businesses.
Brussels is also launching a formal dispute process against Washington at the Geneva-based World Trade Organisation. The comission said in a statement that this would “reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US”.
Commisson president Ursula von der Leyen said the bloc was still “fully committed” to striking a deal with Mr Trump, and said there was “a good deal to be made”.
But unlike Britain, a deal is not yet done -- and that means Brussels will “continue preparing for all possibilities”.
02:14 PM BST
Trump-Starmer call last week was ‘important moment’ in getting deal done
Officials in London had been waiting patiently for their Washington counterparts to choose the right moment to put the US-UK trade deal in front of Donald Trump.
It was a call last week between Sir Keir Starmer and Mr Trump that was the “important moment” that got the deal over the line, a source close to negotiations told The Telegraph.
“We were all on all-systems-go this time last week. So effectively, we’ve been waiting for it for a week,” they said.
02:01 PM BST
Reeves fails to repeat claim EU more important than US
Rachel Reeves appeared to distance herself from her past comment that the EU was more important to Britain than the US.
The Chancellor said last month: “I understand why there’s so much focus on our trading relationship with the US but actually our trading relationship with Europe is arguably even more important because they are our nearest neighbours and trading partners.”
Asked if she still believed that, Ms Reeves told broadcasters this afternoon: “We shouldn’t choose between countries. The UK is an open trading economy. Open for trade, open for business, open for investment.”
01:48 PM BST
Wall Street on track for jump as Trump announces US-UK trade deal
Wall Street’s main stock indexes were higher in premarket trading as Donald Trump said he was poised to unveil a “full and comprehensive” trade deal with Britain.
The Dow Jones Industrial Average gained 0.7pc as traders anticipated the contents of what would be the first trade agreement signed by the US since the president launched his “Liberation Day” tariffs last month.
The S&P 500 was up 0.9pc and the Nasdaq 100 had jumped 1.3pc ahead of the opening bell in New York.
The FTSE 100 in London remained 0.3pc higher as the Bank of England announced it was cutting interest rates from 4.5pc to 4.25pc.
Governor Andrew Bailey said it was “excellent that the UK is leading the way” on trade deals, although he said he hoped it was the first of many given Britain’s status as an open economy impacted by world trade.
01:37 PM BST
Government defies business expectations by agreeing US deal
The British Government has outperformed businesses’ expectations of its ability to agree a trade deal with the Trump administration, writes Emma Taggart.
Just 20pc of UK businesses thought the Government would be able to “finalise a deal with the US to avoid tariffs in the next 90 days”, according to a new survey from Boston Consulting Group.
The poll of British companies which export to the US found that almost two thirds (64 pc) were worried a global trade war could lead to cheap imports undercutting domestic business.
Yet businesses are optimistic that all US tariffs will not last, as 54pc of respondents believe they will be unilaterally reversed in the next six months.
“The likely continuation of the 10pc universal tariff will remain a concern, alongside wider tariff impacts,” Raoul Ruparel, director of BCG’s centre for growth, said.
“All of this puts greater pressure on the Government to reassure businesses and take further steps to boost UK competitiveness.”
01:23 PM BST
Lord Mandelson to attend Trump trade deal announcement
Peter Mandelson, Britain’s Ambassador to the US, will lead the delegation meeting Donald Trump in the Oval Office for today’s trade deal announcement, I’m told.
Other members of the trade team arrived in Washington from London yesterday.
The announcement is a big win for Lord Mandelson, who had irritated some Foreign Office colleagues by repeatedly promising a deal was in sight only for fresh hurdles to emerge.
01:06 PM BST
Bailey welcomes US-UK trade deal
The Bank of England’s Governor welcomed news of a UK and US trade deal, which he said would help to reduce economic uncertainty.
Although he had not been briefed on the content of any agreement, Andrew Bailey said such a deal would be “excellent” after the Bank cut interest rates from 4.5pc to 4.25pc.
He warned that Britain is a “very open economy” and as a result he hoped any deal announced today would be the first of many, as Britain is “affected by the way tariffs affect other economies”.
He said: “We haven’t been briefed, but we do have news to suggest that there will be an agreement and we welcome this news. It will help to reduce uncertainty.
“The UK is, though, a very open economy and is affected by the tariffs affecting other economies. I say that because I hope the UK agreement, if it is the case this afternoon, is the first of many. It is excellent that the UK is leading the way and I do congratulate all those involved.”
12:42 PM BST
Starmer’s flattery of Trump helps UK get to front of queue
Britain’s trade deal with the US wasn’t expected to be the first over the line.
People close to Donald Trump believed the White House was prioritising Asian nations which could help isolate China - think Japan, India, South Korea, maybe Australia.
But British officials say Sir Keir Starmer did a great job wooing Mr Trump. It wasn’t just the Oval Office performance, when he unveiled a State Visit invitation from the King.
They point out he was the only world leader who last year scored a dinner date in Mr Trump’s private quarters at Trump Tower.
Others had to make do with the members’ terrace at Mar-a-Lago, a much less intimate venue.
12:21 PM BST
Red line on lowering food standards remains, says No 10
Downing Street insisted that lowering food standards remained a “red line” for any US trade deal.
The Prime Minister’s official spokesman said: “We have always been clear on our red line when it comes to food standards.
“We are not going to lower British food standards. That’s something set out in the manifesto.”
12:04 PM BST
No 10 won’t be drawn on Trump’s ‘comprehensive’ deal claim
Downing Street would not be drawn on Donald Trump’s claim that the US-UK trade deal is “full and comprehensive”.
The Prime Minister’s official spokesman would only say that “we look forward to providing an update later today” and insisted the agreement will be in the “national interest”.
The deal unveiled today is expected to set out the general terms of an agreement, with a framework for further talks on specific details.
11:49 AM BST
Have your say on the US-UK trade deal
11:42 AM BST
Trade deal must be ‘on the right terms’, says Swinney
John Swinney said the US-UK trade deal must be “on the right terms”.
The SNP leader and First Minister of Scotland said a good deal would be a welcome alternative to the “enormous economic damage” caused by Donald Trump’s global tariff war.
During a visit to a primary school in Edinburgh on Thursday morning, Mr Swinney was asked if the upcoming trade deal vindicated Sir Keir Starmer’s approach of seeking to build bridges with the Trump administration.
He said: “I think anybody’s observation would be that a trade deal would be an advantage if we could secure one, as long as it’s on the right terms.”
He said he would wait to see the details of the proposals coming later in the day.
Mr Swinney added: “Certainly as an alternative to the enormous economic damage being applied as a consequence of the tariffs, a trade deal which is in our interests would be beneficial.
“But we will have to wait until we scrutinise the detail to determine whether any proposed trade deal is actually in our interests.”
11:35 AM BST
Truss ‘pumped’ ahead of Trump press conference
11:31 AM BST
FTSE rallies after Trump promises ‘comprehensive’ trade deal
The FTSE 100 rallied after Donald Trump said he was about to announce a “full and comprehensive” trade deal with Britain.
The UK’s flagship stock index was up 0.5pc while the mid-cap FTSE 250, which is more focused on the UK economy, gained 1.1pc.
The pound was down 0.1pc against the dollar at less than $1.33 ahead of a cut to interest rates by the Bank of England expected shortly after midday.
11:29 AM BST
US deal won’t ‘undercut’ British farmers, insists minister
The Environment Secretary has sought to reassure British farmers they will not be undercut by the soon-to-be-announced trade deal with the US.
Steve Reed told the House of Commons on Thursday morning that the Government had “red lines” on trade matters and it would stick to them.
Tim Farron, the Liberal Democrat environment spokesman, had asked the minister: “US animal welfare standards as a matter of fact are worse than ours, which means that import costs are less, and so to allow equal access is not free trade, it is unfair trade, and throwing our farmers under the bus just like the Conservatives did in their deal with Australia and New Zealand.
“So, will he support Liberal Democrat calls for this deal to only be signed if it supports farmers, and after a vote from this House?”
Mr Reed replied: “Of course, there have been no announcements yet so I won’t be able to pre-empt what those might be, but we have been crystal clear - we have red lines in this.
”We will not be allowing British farmers to be undercut on environmental or welfare standards in the way that the Conservatives did when they agreed a trade deal with Australia that undercut British farmers and caused immense damage to them.”
11:14 AM BST
Trump: Comprehensive trade deal will cement US-UK relationship
11:12 AM BST
UK-US deal ‘won’t move the needle’ for investors
A UK-US trade deal will not “move the needle” for investors who are more focused on talks between America and China, according to analysts.
The agreement due to be announced this afternoon will be viewed as a “yawner” by the market, according to Dan Ives, an analyst at Wedbush Securities.
The FTSE 100 has gained just 0.3pc so far today while the pound has now slipped 0.2pc against the dollar despite Donald Trump writing on his Truth Social platform that it “should be a very big and exciting day for the United States of America and the United Kingdom”.
Mr Ives said US negotiations with China, India and Vietnam were the primary focus of markets.
He said: “Much more market focus will be on the Bessent and Greer talks with China in Switzerland kicking off tomorrow in our view… as the 145pc black cloud China tariffs and many of the restrictions hitting Nvidia and other tech companies is the big concern of investors around the world, with the negative ripple impact in the supply chain front and centre.”
11:12 AM BST
Telegraph readers react to US-UK trade deal
Donald Trump has now confirmed he will unveil a new trade deal between the US and the UK this afternoon.
It is a major moment for Sir Keir Starmer because it will be the first deal agreed by Mr Trump since he launched his global tariff war last month.
Telegraph readers have been busy delivering their verdict on the breakthrough in the comments section of today’s live blog:
10:53 AM BST
Trump: Very big and exciting day for US and UK
10:51 AM BST
Government to deliver Commons statement on trade deal
A statement on trade between the UK and the US will be made in the House of Commons this afternoon, MPs have been told.
Speaker Sir Lindsay Hoyle said: “The Government has indicated that there will be a statement this afternoon on US-UK trade.
“The timing of that statement is yet to be established, but it will appear on the enunciator once it’s been confirmed.”
An urgent question on the same subject had been granted for this morning but it has now been withdrawn.
It is currently unclear who will be delivering the statement for the Government, with Sir Keir Starmer expected to deliver his own remarks on the deal at a separate event this afternoon.
10:45 AM BST
Toyota suffers near £1bn hit from tariffs
Toyota said Donald Trump’s tariffs will deliver a ¥180bn (£936m) hit to its finances in just two months, underscoring the importance of Britain’s efforts to secure a trade agreement with the US.
The Japanese carmaking giant said it had factored in the sharp drop in operating income in April and May as its profits for its latest financial year missed analyst forecasts.
Shares fell 1.3pc after Toyota said annual operating profit was ¥4.8 trillion, well below the record ¥5.4 trillion during the previous year.
Its shares have fallen about 15pc so far in 2025 after President Trump placed 25pc tariffs on car imports to the US.
Chief executive Koji Sato said: “When it comes to tariffs, the details are still incredibly fluid so it’s difficult to take steps or measure the impact.”
He added that Toyota will consider building out local product development and manufacturing in the US in the medium to long term.
10:32 AM BST
US-UK trade deal impact likely to be ‘very small’ for Britain
Analysts at JP Morgan have cautioned that the economic impact of a US-UK trade deal is likely to be “very small” for Britain, writes Emma Taggart.
In a note to clients the bank said that even with an agreement in place UK exports were still expected to be subject to the 10pc baseline tariff from the US.
“It remains to be seen whether the UK can arrange an exemption from the baseline tariff following subsequent negotiations,” they said.
The bank added that if the Government was not able to avoid the 10pc tariff on British exports it would “significantly limit the economic upside from continued negotiations and further concessions”.
Analysts said the deal was anticipated to have some reductions in the 25pc sectoral tariffs on cars, aluminium and steel but those were unlikely to be eliminated entirely. They added that in return, the UK could reduce tariffs on cars as well as potentially offer some exemption from the digital services tax.
10:23 AM BST
Analysis: US-UK trade deal likely to be narrow, not comprehensive
The US-UK trade deal due to be announced later today is not expected to be a comprehensive agreement but rather a narrow pact focused on addressing a handful of key issues.
The UK’s focus has been on easing the impact of Donald Trump’s new tariffs. The US president applied his 10 per cent baseline “Liberation Day” levy to almost all UK goods.
Britain is also subject to a 25 per cent tariff on exports of steel, aluminium and cars.
The Government is thought to be resigned to the baseline tariff staying in place but ministers have been hoping to get the US to agree to lift or reduce the 25 per cent charge.
The US has made no secret of the fact that it would like the UK to reduce or scrap the digital services tax on tech giants which is charged at 2 per cent on the revenues of search engines, online marketplaces and social media companies.
But the Government has ruled out lowering food standards to allow more US agricultural products into the country, or watering down the Online Safety Act, which some in America regard as placing restrictions on freedom of speech.
Both sides are likely to insist that there are only winners from the deal. Critics are unlikely to agree.
10:10 AM BST
Bitcoin jumps amid hopes of UK-US trade deal
Bitcoin approached $100,000 (£75,300) for the first time since February as the expected announcement of a US-UK trade deal raised optimism among investors.
The world’s largest cryptocurrency gained as much as 2.9 per cent to $99,621, extending a rally that began on Wednesday when Washington and Beijing confirmed they would hold trade talks in Switzerland this weekend.
Bitcoin hit a record of $109,241 on January 20 as President Trump returned to the White House with a promise to deregulate the cryptocurrency industry.
It fell roughly 32 per cent from its all-time high to below $75,000 in early April.
10:04 AM BST
Tories granted urgent question on US trade deal
The Tories have been granted an urgent question in the House of Commons on the US-UK trade deal.
Andrew Griffith, the shadow business and trade secretary, will ask the Government for an update.
The question will be heard in the Commons just after 10.30am.
However, it may not be particularly illuminating: The Government is unlikely to reveal any of the details, or even confirm the deal is done, before Donald Trump makes his announcement at 3pm UK time.
10:02 AM BST
Timing of US trade deal announcement takes No 10 by surprise
Downing Street had been expecting the US to make an announcement that the trade deal was done.
But the timing of Donald Trump’s post on social media on Wednesday night came as a surprise to officials in Westminster.
Sir Keir Starmer was due to be solely focused on VE Day commemorations on Thursday but he will now also deliver an update on the trade talks after Mr Trump’s press conference scheduled for 3pm UK time.
The Prime Minister is expected to make a statement at approximately 4pm.
09:54 AM BST
Analysis: Britain beating Brussels to US deal a major coup for Starmer
An economic deal with the US to reduce tariffs is a diplomatic coup for Sir Keir Starmer.
It means that Britain has beaten Brussels to a deal in the same week it signed a trade deal with India, which the EU has spent decades trying to get over the line.
The pact with Washington is expected to fall short of the comprehensive free trade agreement long mooted as a major prize of Brexit.
But the fact Britain is the first country in the world to agree a tariff deal with Donald Trump is an achievement, which would not have been possible if it was still a member of the EU.
Outside of a bloc, Mr Trump believes was set up to “screw” the US, the UK can negotiate trade deals more quickly and without getting the backing of 27 member states for any agreement.
If the UK can seal a “reset” deal with the EU by a May 19 London summit, it will make a hat-trick of deals for the Prime Minister in less than a fortnight.
09:33 AM BST
Trade Secretary managed trade deal expectations only last night
Jonathan Reynolds sought to manage expectations of a US trade deal on Wednesday evening, despite rumours in Washington that one was about to be announced.
Speaking to an audience at Mansion House to celebrate the signing of the Government’s new trade deal with India, the Business and Trade Secretary said: “We are continuing our discussions on an economic deal. A deal that would strengthen the relationship in the UK with our single largest trading partner, but a deal that would work in the national interests of the UK.
“I am optimistic, but I’m also keen that the UK prepares for all scenarios. That is the right thing to do.”
His remarks came as Donald Trump wrote on his social media platform Truth Social that a “Big News Conference” was coming “concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY”.
Rachel Reeves, the Chancellor, had recently suggested relations with the EU were a greater priority than a deal with the US.
Mr Reynolds said the Government was negotiating with Washington and Brussels, trying to secure better terms with both at the same time.
Mr Reynolds said: “We said at the outset that we would stay calm and clear-headed in these discussions, and that is exactly what we have done.
“At the same time, we are also pursuing a more mature relationship with our closest neighbours and friends in the European Union.”
09:29 AM BST
Tories reserve judgement on US-UK deal
James Cartlidge said he hoped the Government had agreed a good trade deal with the US but the “devil is always in the detail”.
The shadow defence secretary told Sky News: “In principle of course in our party we want to see a strong trading relationship with what you are right to describe as our close ally, the United States, closest military ally, economic partner.
“But as you know the devil is always in the detail and we will await those details as they arise.”
09:12 AM BST
Starmer: ‘I will always act in our national interest’
Sir Keir Starmer confirmed he will make a statement later today on the US-UK trade deal.
The Prime Minister said people should “make no mistake, I will always act in our national interest”.
Speaking at the London Defence Conference as he marked the 80th anniversary of VE Day, the Prime Minister said: “Eighty years ago, just around the corner from here, Churchill said we must begin the task of rebuilding, do our upmost to make this country a land in which all have a chance and in which all have a duty to our countrymen.
“The post-war generation took on that task with relish and we must use this moment to do the same, deepening our partnerships with allies, old and new.
“From across Europe to meet the defence challenges of our age, to the United States, an indispensable ally, for our economic and national security.
“As you know, talks with the US have been ongoing and you will hear more from me about that later today.
“But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country.”
08:47 AM BST
MPs must be given vote on US-UK trade deal, say Lib Dems
The Liberal Democrats said MPs must be given a vote on the US-UK trade deal.
Daisy Cooper, the party’s Treasury spokeswoman, said if the Government is “confident” it has agreed a good deal it should not be “afraid” to present it to parliament.
“Parliament must be given a vote on this US trade deal so it can be properly scrutinised,” she said.
“A good trade deal with the US could bring huge benefits, but Liberal Democrats are deeply concerned that it may include measures that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires.
“If the Government is confident the agreement it has negotiated with Trump is in Britain’s national interest, it should not be afraid to bring it before MPs.”
08:21 AM BST
UK stocks rise ahead of trade deal announcement
The FTSE 100 rose at the start of trading ahead of the announcement of a trade deal between Britain and the US.
The UK’s flagship stock market gained 0.2pc after the open to 8,572.21 as Downing Street confirmed the Prime Minister would make an announcement later today.
The mid-cap FTSE 250, which is more focused on the UK economy, rose 0.5pc to 20,428.38.
Jim Reid, an analyst at Deutsche Bank, said: “Given that full trade deals take years to negotiate, this will likely be a framework and it will be interesting to see whether the 10pc baseline tariff stays as that will provide an important template for negotiations with other countries and a good guide to the long-term tariff strategy of the US.
“Asian equity markets and European/UK stocks are responding positively to the news that comes a couple of days before trade talks between Washington and Beijing over the weekend.”
08:13 AM BST
US-UK trade deal ‘another Brexit benefit’, say Tories
Andrew Griffith, the shadow business secretary, welcomed the prospect of the US and UK agreeing a trade deal and said it would be “another Brexit benefit”.
But he said Labour needed to rethink its “attacks on business” if it really wanted to boost the nation’s economy.
He posted on X: “A Comprehensive UK US trade deal would be welcome and another Brexit benefit. Restoring growth to the UK also requires reversing Labour’s attacks on business and cutting ‘Red Ed’s’ high energy costs.
“We will of scrutinise the detail of any deal - which should first be announced to Parliament.”
07:51 AM BST
Healey: UK and US have been locked in ‘hard negotiations’
John Healey said the UK and the US had been locked in “hard negotiations” for months but would not be drawn on whether a trade deal had finally been agreed.
The Defence Secretary said he would not comment because he wanted to continue to provide negotiators with the “space to secure the best possible deal for Britain”.
He told Sky News: “I am not going to preempt what the Prime Minister or the president may say.
“But what this reminds us about is just how indispensable the US is as an ally to the UK on economic security and on national security.
“We have been conducting hard negotiations with the US ever since Keir Starmer went to the White House in February, trying to secure a good economic deal for Britain and during that time I have to say ministers like me have stepped back and refrained from commenting on those discussions in order to give the negotiators the space to secure the best possible deal for Britain.
“So any live discussions or timelines really aren’t for me this morning.”
07:28 AM BST
Starmer to make announcement on UK-US trade talks later
Downing Street has confirmed that Sir Keir Starmer will give an update later today on the trade talks between Britain and the US.
A Number 10 spokesman said: “The Prime Minister will always act in Britain’s national interest - for workers, for business, for families.
“The United States is an indispensable ally for both our economic and national security.
“Talks on a deal between our countries have been continuing at pace and the Prime Minister will update later today.”
07:23 AM BST
US is ‘indispensable ally’ says Defence Secretary
The Defence Secretary declined to comment on the expected US-UK trade deal.
John Healey told Times Radio: “It’s certainly true that the US is an indispensable ally for the UK, both on economic and national security grounds.
“It’s also true that since the Prime Minister visited the White House in February we have been in detailed talks about an economic deal.
“But I have to say, throughout that period, ministers like me have been keen to give the negotiations the space to get the best possible deal for the UK.
“So, we just haven’t been giving a running commentary on developments or timelines, so I’m not going to start now.”
06:56 AM BST
Stocks rise amid hopes for trade deal ‘template’
Britain’s potential trade deal with the US has sent stock markets higher as it could offer a template for agreements with other countries, according to analysts.
The FTSE 100, S&P 500 and European indexes rose about 0.8pc in premarket trading ahead of the announcement expected later today.
Rajeev De Mello, a portfolio manager at Gama Asset Management, said: “The details of the deal will be critical as a possible template for negotiations with other countries.
“It’s a positive for UK equity markets and for the sterling, and possibly for other very close friends of the US.”
Rodrigo Catril, a strategist at National Australia Bank, added: “The market is running with the idea that any trade deal is good news, because it provides a certain degree of clarity and could provide a template for others to follow.”
06:45 AM BST
Bank of England expected to cut interest rates
Britain’s economy could be handed a double boost today, with the potential announcement of a trade deal with the US coming as the Bank of England is expected to cut interest rates.
Most economists think UK interest rates will be reduced to 4.25pc from their current level of 4.5pc this afternoon amid the risks posed to growth by a global trade war.
Analysts said some members of the central bank’s Monetary Policy Committee (MPC) could push for a larger 0.5 percentage point cut in a bid to reduce borrowing costs further and ease pressure on households and businesses.
It will be the first time the MPC has met to decide monetary policy since US President Donald Trump’s “liberation day” tariff announcements last month.
The decision, along with quarterly economic forecasts, will be delayed by two minutes to honour the silence to mark the 80th anniversary of VE Day - meaning it will be published at 12.02pm, rather than noon.
A trade deal between Britain and the US is expected to be announced in the White House at about 3pm UK time.
Before news of the UK-US trade deal broke, Peel Hunt chief economist Kallum Pickering said the “highly uncertain economic backdrop” would encourage policymakers to intervene by cutting rates.
“Although UK economic momentum has picked up appreciably since last December, and has surprised to the upside relative to depressed Bank expectations, rising global growth worries linked to the US’s erratic and risky tariff policies pose fresh risks,” he said.
Economists will be paying close attention to the MPC’s forecasts for inflation and economic growth, which some said could both be downgraded.
This could “provide a strong signal that policymakers are prepared to step up the pace of future rate cuts” in order to boost the economy, according to Mr Pickering.
06:24 AM BST
US trade deal to come days after UK-India agreement
The trade deal between the UK and the US will come days after Britain announced it had come to terms on a trade deal with India, which will mean dramatic tariff reductions on scotch whisky and car exports to India.
Levies on aerospace, electricals and other food products will also fall under the agreement, while UK consumers are expected to benefit from tariffs being reduced on some Indian goods such as clothing imported to the country.
Announcing the India deal on Tuesday, Sir Keir Starmer said: “We are now in a new era for trade and the economy. That means going further and faster to strengthen the UK’s economy, putting more money in working people’s pockets.”
He added: “Today we have agreed a landmark deal with India - one of the fastest growing economies in the world, which will grow the economy and deliver for British people and business.”
Indian Prime Minister Narendra Modi described it as a “historic milestone” and an “ambitious and mutually beneficial” trade agreement that will “catalyse trade, investment, growth, job creation, and innovation in both our economies”.
06:08 AM BST
US-UK trade deal to be announced
Donald Trump is set to unveil a trade deal with Britain in the Oval Office on Thursday, according to sources familiar with talks.
The president teased the new trade deal in a post on Truth Social on Wednesday evening without naming the nation involved, revealing that a press conference would take place at 2pm GMT.
“Big News Conference tomorrow morning at 10:00 A.M, The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!” he wrote, with his trademark use of capital letters and punctuation.
The British embassy did not immediately respond to a request for comment. However, two sources confirmed to The Telegraph that British officials were expected at the White House for the announcement.
Trade between the two nations is already almost balanced, making it easier to find agreement, and Mr Trump has developed a warm relationship with Mr Starmer.
06:00 AM BST
Good morning
Thanks for joining me. Donald Trump is set to announce a trade deal with the UK today.
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What happened overnight
The pound and FTSE 100 stock-index futures rallied following the news that Mr Trump is expected to announce a trade deal with the UK.
Sterling gained as much as 0.5pc to 1.3356 and FTSE futures rose 0.7pc amid hopes the trade agreement would alleviate US tariffs on the UK.
Shares in Asia also climbed, with Japan’s benchmark Nikkei 225 edging up 0.2pc in morning trading to 36,863.15.
Australia’s S&P/ASX 200 added 0.2pc to 8,190.40, South Korea’s Kospi rose 0.3pc to 2,581.62 and Hong Kong’s Hang Seng surged 0.8pc to 22,864.74.
On Wall Street, the Dow Jones Industrial Average rose 0.7pc, to 41,113.97, the S&P 500 rose 0.4pc, to 5,631.28, and the Nasdaq Composite rose 0.3pc, to 17,738.16.
In the bond market, US Treasury yields slipped after the Fed’s announced it would not change interest rates. The yield on benchmark 10-year US notes fell to 4.269pc from 4.318pc late on Tuesday.