Is the UK-US Trade Deal a Boon for Keir Starmer?

Described by trade specialists as "the most significant week for UK trade since Brexit," the UK has secured new deals. the much-anticipated trade agreement with the U.S. , just over a month after – so-called ‘Liberation Day’ – tariffs were announced.

This marks the U.S.'s first bilateral agreement since these tariffs were implemented. However, it remains uncertain precisely what the agreement will include. , with full terms yet to be released .

Many sectors continue to face standard 10 percent tariffs, suggesting that the UK government did not manage to secure advantages in most areas.

"This isn’t actually an agreement; it’s merely a press release disguised as one," said Matthew Oresman, a partner at the law firm Pillsbury. City AM. The tricky part is in the specifics here.

The trade agreement aimed to prevent President Donald Trump’s retaliatory tariffs from affecting "sensitive areas" in global commerce, as per insights from trade specialists.

What has the UK conceded? Although there were speculations, we haven't surrendered the Digital Services Tax, even though some rumors suggest this might have been saved as a trump card for upcoming discussions.

"There is already significant collaboration happening. However, how it was presented made it seem as though the UK would undertake additional actions beyond those currently being implemented. My assumption is these new measures might target China, yet specifics remain ambiguous," explained a trade specialist. City AM.

A story of dual conflicts

Trump’s team crafted a narrative around the negotiation process. The U.S. Secretary of Commerce, Howard Lutnick, took significant measures to emphasize globally that this agreement was a personal victory for Donald Trump: "He's the closer."

This statement from Prime Minister Keir Starmer echoed his perspective on the matter: "Along the way, people advised me to step aside... but we put in the effort and remained committed to staying in the room."

According to Starmer, this was achieved through the qualities of "patience…pragmatism," and "avoiding politics as mere spectacle."

Starmer embraced the American perspective that emphasized this significant agreement was reached on VE Day, signifying eight decades of "closest partnership."

Starmer remarked that it was "appropriate" that they would "strengthen the connection" today.

Despite the lack of planning, the trade deal's timing emerged spontaneously. Demonstrating his sense of humor, Peter Mandelson, serving as the UK’s ambassador to the US at the time, expressed gratitude towards the President for his "characteristic last-minute involvement." The Prime Minister, clearly pleased but undoubtedly surprised by the increased demands from the President during an overnight conversation, welcomed receiving the call late at night.

Starmer has stated, "I wasn't aware of the precise date for the announcement—I wouldn't have been talking to President Trump during the latter part of the Arsenal-PSG match if I had organized it differently; however, that's how things unfolded."

The trade deal details

The U.S. imposed a tariff of 25 percent on $10 billion worth of British car exports to America. Steel and aluminum exports from the UK also made significant headway on their list, amounting to around £3 billion.

Keir Starmer delivered his address at the Jaguar Land Rover plant to underscore the significance of the UK’s automobile sector in this agreement (following an error where journalists were mistakenly directed to the incorrect facility).

Lutnick stated that free speech "did not come up" during discussions and was strictly an economic issue. Trump commented, saying this revolved around 'business religion... sort of a religious aspect, but much less significant; I wouldn't want to find myself in hot water over this."

A high-ranking Labour member of parliament mentioned City AM that preventing chlorinated chickens from entering our supermarkets was a top priority for the government, whereas Starmer stated that "redlines regarding standards, specifically in agriculture" were "included in the agreement."

Starmer was careful not to aggravate UK farmers even more, since they have been rather displeased with the Labour government over the last several months, with tractors flooding into Whitehall.

Even so, a trade specialist indicates that based on our current knowledge, there has been "at minimum, a pseudo-concession regarding agriculture."

Although Trump stated that he "didn't actually have knowledge" regarding the UK's farming capabilities, conversely, he was impressed by Mandelson’s “lovely accent.”

New strategy bears fruit

"This has taken many years to come together. No one seemed capable of accomplishing it. Kudos should go to the Keir Starmer administration for securing the agreement; they managed to provide relief through this process. In my view, they've created a safeguard for themselves," stated Oresman.

The Conservative administration devoted several years to crafting an all-encompassing free trade deal with the U.S., working diligently to refine every detail. According to Riddell, "extensive talks had taken place, leading to detailed chapters within position papers outlining potential agreements between the UK and the US."

Ultimately, it fell through.

Following the recently-agreed deal, Conservative leader Kemi Badenoch stated, "We've been betrayed."

Certain conservatives adopted a more restrained response.

Andrew Griffith, the opposition's trade policy spokesperson, and Liz Truss, who formerly served as Prime Minister and trade secretary, both endorsed the agreement as a "benefit of Brexit."

"This is as good as it gets," Trump stated.

Riddell indicates that it's improbable for the U.S. to revert to a freer trading path soon, considering "it has been quite some time" since they last negotiated a broader accord.

Ben Ramanauskas, a senior fellow in economics at Policy Exchange, stated, "This pact, along with the newly unveiled trade deal with India, highlights the advantages of possessing an autonomous trade policy. It’s commendable how the government has capitalized on these opportunities and aims to expand them further through negotiations for a broader accord with the U.S. as well as other nations."