The UK and US have agreed a trade deal, with Sir Keir Starmer and Donald Trump confirming the announcement during a live televised phone call.

It is the first trade deal agreed after Mr Trump began his second presidential term in January, and after he imposed strict tariffs on countries around the world in April.

Sir Keir said the “first-of-a-kind” deal with the US will save thousands of jobs across the UK, boost British business and protect British industry.

Politics latest: Trump and Starmer say trade deal just the start

The deal includes:

• Lowering 27.5% tariff on British car exports to the US to 10%, affecting 100,000 vehicles each year

• UK steel and aluminium industries will no longer face any tariffs after they had 25% duties placed on them

• Beef exports allowed both ways

• UK to have “preferential treatment whatever happens in the future” on pharmaceuticals, the president said.

However, there is a still a 10% tariff on most UK goods imported into the US after Mr Trump imposed that duty on most countries’ exports last month.

Mr Trump said the “final details” of the agreement were still being “written up”.

Trade minister Douglas Alexander told parliament the UK has “committed to further negotiations on tariff reductions”.

MPs will be able to debate the deal and any legislation needed to implement it, he added.

Sir Keir said “this is a really fantastic, historic day” that will “boost trade between and across our countries”, while Mr Trump said the agreement would be a “great deal for both countries”.

The president said the deal will make both the UK and the US “much bigger in terms of trade” as he thanked Sir Keir, who he said has been “terrific for his partnership in this matter…we have a great relationship”.

Sir Keir said it was achieved by not playing politics, and insisted the UK can have good trade relations with both the US and the EU.

Red lines on beef and chicken

The PM said the UK had “red lines” on standards written into the agreement, particularly on agriculture.

Mr Alexander told the Commons: “Let me be clear that the imports of hormone-treated beef or chlorinated chicken will remain illegal.

“The deal we’ve signed today will protect British farmers and uphold our high animal welfare and environmental standards.”

Read more:
UK and India strike ‘historic’ trade deal
Starmer faces rebellion from Labour MPs over welfare reforms

‘American beef is the safest’

US agriculture secretary Brooke Rollins said the deal will “exponentially increase our beef exports”, and added: “To be very clear, American beef is the safest, the best quality, and the crown jewel of American agriculture for the world.”

On whether the UK will have to accept all US beef and chicken, Mr Trump said: “They’ll take what they want, we have plenty of it, we have every type, we have every classification you can have.”

Hinting the US will move towards higher welfare practices, he said US health secretary Robert F Kennedy Jr “is doing a tremendous job and he’s probably heading toward your system with no chemical, no this, no that”.

‘A Diet Coke deal’

Previous UK governments have attempted – and failed – to secure a free trade agreement with the US, but Sir Keir had made it a high priority.

Conservative shadow trade secretary Andrew Griffith chastised the deal, saying the UK is still in the same category as Burundi and Bhutan.

“It’s a Diet Coke deal, not the real thing,” he told the Commons.

Three former police officers in the US have been found not guilty of murder over the death of motorist Tyre Nichols.

Tadarrius Bean, Demetrius Haley and Justin Smith were acquitted by jurors following a nine-day trial at Tennessee state court.

The former Memphis officers were also found not guilty of aggravated assault, aggravated kidnapping, official misconduct and official oppression.

Mr Nichols, a father of one, died three days after officers punched, kicked and hit him with a baton in January 2023 as he was just yards from his home.

The 29-year-old’s death and a video of the incident – in which he cried out for his mother – sparked outrage in the US including nationwide protests and led to police reform.

Civil rights attorney Ben Crump, who represents Nichols’ family, described the verdicts as a “devastating miscarriage of justice”. In a statement, he added: “The world watched as Tyre Nichols was beaten to death by those sworn to protect and serve.”

Memphis District Attorney Steve Mulroy said he was “surprised that there wasn’t a single guilty verdict on any of the counts” including second-degree murder. He said Mr Nichols’ family “were devastated… I think they were outraged”.

But despite the three defendants being acquitted of state charges during the trial in Memphis, they still face the prospect of years in prison after they were convicted of federal charges of witness tampering last year.

Two other former officers previously pleaded guilty in both state and federal court. Desmond Mills Jr. gave evidence as a prosecution witness, while Emmitt Martin was blamed for the majority of the violence.

Sentencing for all five officers is pending.

Video evidence showed Mr Nichols was stopped in his car, yanked from his vehicle, pepper-sprayed and hit with a Taser. He broke free and ran away before the five police officers caught up with him again, and the beating took place.

Prosecutors argued that the officers used excessive, deadly force in trying to handcuff Mr Nichols and were criminally responsible for each others’ actions.

They also said the officers had a duty to intervene and stop the beating and tell medics that Mr Nichols had been hit repeatedly in the head, but they failed to do so.

The trial heard Mr Nichols suffered tears and bleeding in the brain and died from blunt force trauma.

The defence suggested Mr Nichols was on drugs, giving him the strength to fight off five strong officers, and was actively resisting arrest.

In December, the US Justice Department said a 17-month investigation showed the Memphis Police Department uses excessive force and discriminates against Black people.

The US central bank held interest rates as it said Trump tariffs have risked higher inflation and unemployment amid “so much” uncertainty.

The announcement is likely to anger President Donald Trump, who has made the taxes on imports one of his signature policies and had threatened to fire the Federal Reserve chair, Jerome Powell.

On Wednesday, the Federal Reserve, known as the Fed, held rates at 4.25%-4.5%. Unlike the UK, the US interest rate is a range to guide lenders rather than a single percentage.

Money blog: Dynamic pricing coming to UK restaurants

It means borrowing costs have remained unchanged for Americans, something Mr Trump had wanted to reduce.

Interest rates have been raised by the Fed to bring down high inflation in the wake of Russia’s invasion of Ukraine and the supply chain crisis brought about by COVID-19 lockdowns.

Fears of inflation rising higher as tariffs make goods on US shelves costlier, and of job losses from reduced spending, led the Fed to remain cautious.

The full effect of the tariffs is “highly uncertain”, Mr Powell said on Wednesday evening, as those announced so far have been “significantly larger” than anticipated.

A 90-day pause was announced on the suite of taxes Mr Trump imposed on countries across the world, on top of the 10% base tariff, which has remained in place.

A trade war was kicked off between China as the countries escalated tariffs on each other to nearly 150%. Taxes on cars and some metals entering the US are still subject to a 25% tax.

If these tariffs remain, Mr Powell made the strongest statement yet that goods overall would become more expensive.

“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” he said.

“The effects on inflation could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent,” he added.

Read more:
Trump announces 100% tariff on non-US movies
Apple reveals impact of Trump’s tariffs

Uncertainty over the economic outlook also caused consumer and business sentiment to fall, “largely reflecting trade policy concerns”, Mr Powell said.

Despite Mr Trump appointing Mr Powell to the Fed chair position during his first term, the president has repeatedly spoken out against Mr Powell.

Markets rallied after Mr Trump ruled out ousting Mr Powell at the end of April.

It comes as the UK central bank, the Bank of England, is poised to cut interest rates on Thursday afternoon. The base rate is anticipated to drop to 4.25% before falling to 3.5% by the end of the year.