Donald Trump and Sir Keir Starmer have agreed to initiate discussions on a new US-UK trade deal, following the Prime Minister’s offer of an unprecedented second state visit for the US President. The announcement came after high-level talks at the White House, during which the leaders discussed economic ties, tariffs, and future cooperation on technology.
A new economic partnership
Sir Keir Starmer revealed that he and President Trump had decided “to begin work on a new economic deal with advanced technology at its core.” The agreement signals a potential shift in trade relations between the two nations, particularly amid concerns over tariffs that the US is set to impose on British steel exports.
President Trump, who has proposed a 25% tariff on UK steel imports from March, suggested that such measures might not be necessary if a trade agreement is reached. “I think there’s a very good chance that in the case of these two great, friendly countries, we could very well end up with a real trade deal where the tariffs wouldn’t be necessary,” he said.
Royal invitation and diplomatic strategy
Before their discussions, Sir Keir presented the President with a letter from King Charles III, marked “private and confidential,” inviting him for a historic second state visit. The letter underscored the significance of US-UK relations and sought to lay the groundwork for future diplomatic engagements.
“This is unprecedented for a US President,” the letter read, highlighting the unique nature of the invitation. It also suggested discussions on potential locations and programme content for the visit. Sir Keir described the letter as “really special,” stating that it symbolised the enduring strength of the transatlantic alliance.
Tensions and strategic talks
The meeting came amid recent tensions between the two allies, particularly regarding President Trump’s stance on Ukraine. Trump’s previous remarks, including referring to Ukrainian President Volodymyr Zelensky as a “dictator” and threatening trade tariffs, had raised concerns about the state of the UK-US relationship.
However, the White House discussions appeared to smooth over some of these issues, with Trump offering assurances and diplomatic overtures.
During the talks, President Trump:
- Praised Starmer as a “tough negotiator”, acknowledging his efforts to oppose the tariffs and suggesting a real trade deal could be on the horizon.
- Endorsed Starmer’s plans regarding the Chagos Islands, indicating that the UK’s proposal to return sovereignty to Mauritius while leasing back the Diego Garcia base for joint UK-US operations would be a workable solution.
- Expressed support for UK peacekeeping efforts in Ukraine, stating, “We will always be with the British.” However, he stopped short of confirming a US security backstop, as requested by Starmer.
Technology at the heart of the deal
At a joint press conference, Starmer outlined the vision for a “new economic deal” between the US and the UK, with a strong emphasis on emerging technologies.
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“Instead of over-regulating these new technologies, we’re seizing the opportunities they offer,” he stated. “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.”
The Prime Minister also highlighted artificial intelligence as a key area of collaboration. “AI could cure cancer. That could be a moonshot for our age, and that’s how we’ll keep delivering for our people,” he said.
Trump’s business interests in the UK
President Trump also touched upon his personal investments in the UK, hinting at his close ties to the country. “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,” he remarked.
When asked about potential trade sanctions, Trump stated: “I’ll have to take a look at that,” suggesting that negotiations could still influence future economic policies.
Balancing trade relations
Starmer reassured that trade between the two nations remains “fair and balanced,” adding, “In fact, you’ve got a bit of a surplus.” His comments were aimed at reinforcing the UK’s position as a valuable and equal partner in the transatlantic trade relationship.
Conclusion
The agreement to begin discussions on a new US-UK trade deal marks a significant step in strengthening economic ties between the two nations. While key issues such as tariffs and security commitments remain unresolved, the commitment to closer cooperation—particularly in the field of technology—signals a new chapter in US-UK relations. With a second state visit on the horizon, the coming months are likely to see intensified diplomatic efforts to turn these preliminary agreements into concrete policies.
