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The UK and US have hailed a “fantastic, historic day” after striking a landmark trade deal.

In President Donald Trump’s own words, this has been years in the making “but it got there with this prime minister”.

But while Sir Keir Starmer will be no doubt celebrating, the devil is in the detail.

Politics latest: Trump says UK-US trade deal is ‘great honour’

President Trump pictured alongside the UK ambassador to the US, Lord Mandelson, in the Oval Office. Pic: AP
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President Trump pictured alongside the UK ambassador to the US, Lord Mandelson, in the Oval Office. Pic: AP

Here, Sky News looks at what has been announced.

Not a full trade deal

The first thing to note is that this isn’t a free trade deal in the conventional sense, but one that focuses on specific sectors – notably cars, steel and agriculture.

It has led to the reduction in some, but not all, of the tariffs Mr Trump imposed on the UK as part of a sweeping package of global measures last month. This included a 10% levy on all UK exports and a higher charge on steel, aluminium and cars.

Tariff exemptions on cars and steel

As a result of Thursday’s deal, car export tariffs will be reduced from 27.5% to 10%, to match Mr Trump’s baseline levy.

The lower car rate applies to the first 100,000 vehicles exported from the UK to the US each year, which Downing Street said is almost the total the UK exported last year.

British carmakers were intensely worried about the impact of tariffs on their industry, so it is hoped the reduction will save thousands of jobs.

Separately, the UK steel industry – on the brink of collapse just a few weeks ago – now won’t face any tariffs after the US agreed to scrap the 25% rate for the UK.

A 10% levy remains on all other goods coming to the US from the UK, which will be the focus of the next stage of discussions, it is understood.

At respective news conferences on Thursday, Sir Keir said the deal has resulted in “jobs saved, jobs won but not job done”, while Mr Trump said the deal was “comprehensive” but he’d like to see it “go further”.

The prime minister said the new measures will save thousands of jobs in the car and steel industries, which were threatened by Mr Trump’s tariffs.

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Starmer admits ‘we would like to go further in relation to tariffs’.

New deal on beef – but no drop in standards

The UK has had to make concessions on agriculture in exchange for the tariff exemptions, with the deal including new reciprocal market access to beef.

This means US farmers will have access to the UK for the first time, and UK farmers will have access to the US, at a tariff-free quota of 13,000 metric tonnes.

Business Secretary Jonathan Reynolds said this is a fraction of the 35,000 tonnes agreed as part of the Tories’ trade deal with Australia, which rises to 110,000 metric tonnes over time and which farmers said undercut them.

Crucially, the US deal has not involved a weakening of UK food standards on imports, which has previously been a red line in negotiations.

That means hormone-injected beef (and chlorinated chicken) still won’t be allowed on UK shelves, a move that has been welcomed by farming groups.

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Ethanol

The UK has also agreed to remove the tariff on ethanol – which is used to produce beer – coming into the UK from the US, down to zero.

US commerce secretary Howard Lutnick said that together with the beef deal, this would create five billion dollars in “opportunity for American exports”.

Aerospace

Mr Lutnick also said the US has agreed to drop tariffs on Rolls-Royce engines and other plane parts from the UK.

In return, he said there was “going to be an announcement” by an airline company in the UK that they are “buying ten billion worth of Boeing planes later today”.

A government source said that was a “commercial deal” but “we have a commitment from the US that when it comes to the aerospace industry, UK exporters would face a 0% tariff”.

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What wasn’t in the deal?

Health Secretary Wes Streeting told Sky News in February that while the NHS is “not up for grabs”, NHS patients could take part in US clinical trials as part of a deal in life sciences and medical research.

He also told BBC Radio Four that in return for being in the “driving seat for that groundbreaking research”, we should expect British patients “are at the front of the queue for those new treatments and technologies”.

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Health sec: ‘NHS not on table’ in US talks

There was no mention of this in Thursday’s announcement.

However Sir Keir said that as part of the deal, the UK has secured “preferential treatment whatever happens in the future” when it comes to pharmaceuticals, as Mr Trump considers import taxes on drugs and medicines.

Read More:
Starmer’s gamble on Trump appears to have paid off

Film tariffs

Mr Trump has also touted the possibility of film tariffs, though like pharmaceuticals, no details have been announced.

Sir Keir said film tariffs weren’t included in Thursday’s deal as they aren’t currently in place but “of course we’re discussing it with the president’s team”.

Tech

Previous speculation had suggested the UK would revise the digital services tax as part of a deal, with the levy mainly applying to US tech companies.

However, this remains unchanged.

Instead, the two sides 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”, Downing Street said.

Sir Keir also confirmed that there is “nothing in the deal that impinges” on free speech, after US vice president JD Vance criticised the UK and other European governments for their approach.

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‘Crushing blow’ for care homes as they face ban on overseas recruitment

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'Crushing blow' for care homes as they face ban on overseas recruitment

Care workers will no longer be recruited from abroad under plans to “significantly” bring down net migration, the home secretary has said.

Yvette Cooper told Sky News’ Sunday Morning with Trevor Phillips programme the government will close the care worker visa route as part of new restrictions which aim to cut the number of low-skilled foreign workers by about 50,000 this year.

Politics live: Govt launches crackdown on migration

She said: “We’re going to introduce new restrictions on lower-skilled workers, so new visa controls, because we think actually what we should be doing is concentrating on the higher-skilled migration and we should be concentrating on training in the UK.

“Also, we will be closing the care worker visa for overseas recruitment”.

The move comes ahead of the Immigration White Paper to be laid out this week, which will give more details on the government’s reforms.

Care England, a charity which represents independent care services, described Ms Cooper’s comments as a “crushing blow to an already fragile sector” and said the government “is kicking us while we’re already down”.

Its chief executive Martin Green said international recruitment is a “lifeline” and there are “mounting vacancies” in the sector.

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Reform: Immigration ‘should be frozen’

Cooper refuses to give immigration target

Ministers have already announced changes to the skilled visa threshold to require a graduate qualification and higher salary.

Ms Cooper told Trevor Phillips that this – along with the care worker restrictions – will result in a reduction “probably in the region of up to 50,000 low-skilled worker visas in the course of this year alone”.

However, she refused to give a wider target on the amount the government wants to see net migration come down by overall, only saying that it needs to come down “substantially”.

Ms Cooper said the Conservatives repeatedly set targets they couldn’t meet and her plan was about “restoring credibility and trust”.

She said: “It’s about preventing this chaotic system where we had overseas recruitment soar while training in the UK was cut and we saw low-skilled migration in particular, hugely go up at the same time as UK residents in work or in training fell. That is a broken system. So that is what we need to change.”

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Care companies say they can’t carry on after NI hike

The government is under pressure after it’s drubbing at the local elections, when Reform UK took control of 10 councils in England.

Richard Tice, Reform’s deputy leader, said the party’s strong performance was because people are angry about both legal and illegal immigration and called for immigration to be “frozen”.

He told Trevor Phillips: “The reality is that we’ve just won by an absolute landslide – the elections Thursday last week – because people are raging, furious, about the levels of both illegal and legal immigration in this country.

“We need to freeze immigration because the way to get our economy going is to freeze immigration, get wages up for British workers, train our own people, get our own people who are economically inactive back into work.”

Net migration – the difference between the number of people immigrating and emigrating to a country – soared when the UK left the EU in January 2020.

It reached 903,000 in the year to June 2023 before falling to 728,000 in mid-2024.

According to the Home Office, the number of ‘Health and Care Worker’ visas increased from 31,800 in 2021 to 145,823 in 2023, with the rise primarily due to an increase in South Asian and Sub-Saharan African nationals coming to work as care workers.

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Sky News investigates UK care homes

The number decreased significantly in 2024 to 27,174 – due to measures introduced by the Tories and greater compliance activity, the government said.

The crackdown is likely to cause concern in the care sector, which has long warned that low wages are driving a recruitment crisis and is now also being hit by the rise in employer National Insurance.

Speaking to the BBC’s Sunday with Laura Kuenssberg, Ms Cooper said there are around 10,000 people in the UK who came on care worker visas for jobs that didn’t exist and “care companies should recruit from that pool”.

“They came in good faith but there were no proper checks, they were badly exploited,” she said.

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Nadra Ahmed, of the National Care Association, told Sky News this was a “scandal of the Home Office’s own making”, with care workers allowed to come to the UK “legitimately but with spurious contracts from profiteers preying on an already fragile sector”.

She added: “Understandably, many of those who are displaced have a preference of which part of the sector they work in or are qualified to do so, based on the promises made to them.

“Our preference would always be to recruit from within our domestic options but sadly we are not able to generate enough interest in social care when the funding remains a barrier to ensure that pay adequately rewards the skills and expertise of our workforce.”

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Labour’s shift on migration may assuage voters’ concerns – but risks harming struggling care sector

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Labour's shift on migration may assuage voters' concerns - but risks harming struggling care sector

Labour and the Conservatives have been left reeling from Reform UK’s rampant success at the local elections.

And it seems both have taken a clear message from the insurgent party’s signature attitude towards migration.

Politics live: Care homes face ban on overseas recruitment

Polls regularly show the issue is a top concern for voters. While stopping the boats driving illegal migration is proving as difficult for Labour as it was for the Tories – the government has the levers to control legal migration much more directly.

This week, Sir Keir Starmer and Yvette Cooper have decided it’s time to pull them, with their long-awaited white paper due to be published on Monday. But the trade offs involved in reforming the system certainly aren’t without controversy.

Speaking to Sky’s Sir Trevor Phillips to sell her plans to reduce visa numbers, the home secretary repeatedly talked about “restoring control”.

It’s no coincidence to hear her invoking the language of Brexit – highlighting the fact it was Boris Johnson who presided over the spiralling increase in migration after the vote to leave the European Union – and attempting to court the voters who believed doing so would close the borders to the influx of overseas workers.

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“It’s about restoring control and order,” she said. “It’s about preventing this chaotic system where we had overseas recruitment soar while training in the UK was cut…

“That is a broken system. So that is what we need to change.”

The home office plan is to link the reduction in overseas workers with government efforts to get the economically inactive back into work. In future, only those with degree-level qualifications will be eligible for skilled worker visas.

Employers who want to employ lower-skilled workers, on a temporary basis, will have to demonstrate they are training and recruiting UK workers as well.

The home secretary says 180 occupations will be removed from the shortage list, with the shortfall filled by training schemes to fill the gaps with home-grown workers. Questions abound about how training schemes will marry up with immediate business needs now.

But it’s the closure of the specific care worker visa which is leading to the loudest alarm bells thus far.

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Reform: Immigration ‘should be frozen’

Many in the sector are desperately worried about pre-existing staffing shortfalls, unconvinced by government advice to recruit from a pool of 10,000 workers already in the UK on care visas.

Professor Martin Green, of Care England, said: “This is a crushing blow to an already fragile sector. The government is kicking us while we’re already down.”

But the government is determined to try and wean the economy off its dependence on overseas labour.

The increase in net migration is staggering. Before Brexit, the highest figure was 329,000, in the year up to June 2015.

But by June 2023, the annual number had soared to 906,000. While last year that figure fell to 728,000, following restrictions on dependents on care and student visas – the number is still strikingly high.

Kemi Badenoch’s Tories have decided there’s no room for evasion and have regularly issued dramatic apologies for the decisions of the past.

“The last government,” said Shadow Home Secretary Chris Philp on Sunday, as if he had no part of it, “made some very serious mistakes with immigration. They allowed it to be far, far too high…that was a huge mistake.”

But Mr Philp is characteristically full of criticism of Labour’s “failure” on the “radical reforms” needed.

He wants to see parliament voting for an annual cap on numbers, although hasn’t specified what that would be.

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Ms Cooper says migration targets have no credibility after years of Tory failures – but also acknowledged that she wants the numbers to fall “substantially” and “significantly” below 500,000.

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She claims the skilled worker visa changes will lead to 50,000 fewer visas being issued this year alone – a small proportion of that overall too, but a quick result all the same.

Will it be enough?

Reform UK are clearly delighted to be directing the government’s policy agenda.

Deputy leader Richard Tice told Sir Trevor “the Labour Party is talking the talk. Will they actually walk the walk? I actually think the people are voting for us because they know that we mean it.”

But the policy is a risk.

Assuaging voters’ concerns on migration could mean taking a serious hit to an already anaemic economy and struggling care sector. Not to mention the longer-term political decision to move the party firmly to the right.

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Woman arrested after allegedly trying to abduct baby in Blackpool

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Woman arrested after allegedly trying to abduct baby in Blackpool

A woman has been arrested after allegedly trying to abduct a baby in Blackpool.

Police said it was reported that a woman had approached a baby in a pram on Central Drive, near to the Coral Island amusement arcade in the Lancashire seaside town, at around 11.55am on Saturday.

Members of the public and the baby’s parent intervened, Blackpool Police said, adding the baby was unharmed.

A 51-year-old woman has been arrested on suspicion of child abduction and police assault.

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Enquiries are ongoing and the force has advised people to avoid speculating about the incident online.

Chief Inspector John Jennings-Wharton said: “We know that something like this can be very concerning for the community to hear about.

“We are in the early stages of our investigation and are working to establish the full circumstances.”

He added: “If you do have information or footage that could assist those enquiries, we ask you report them to us through the appropriate channels.”

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