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A Nobel Prize-winning economist has told Sky News the recently announced UK-US trade deal “isn’t worth the paper it’s written on”.

Sir Keir Starmer and Donald Trump announced the “first-of-a-kind” agreement with a live, televised phone call earlier this week – and the British prime minister hailed the deal as one that will save thousands of jobs in the UK.

Politics latest: Tories criticise proposals to tackle immigration

But leading economist Joseph Stiglitz has told Sunday Morning with Trevor Phillips he “wouldn’t view [the deal] as a great achievement”.

“Any agreement with Trump isn’t worth the paper it’s written on,” he said, pointing out the president signed deals with Canada and Mexico during his first term – only to slap them with hiked tariffs within days of returning to the White House this year.

“I would view it as playing into Trump’s strategy,” he said.

“His strategy is divide and conquer, go after the weakest countries, and sort of put the stronger countries in the back.”

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How good is the UK-US deal?

The scramble to secure a UK-US trade deal was sparked by Mr Trump’s ‘Liberation Day’ announcement last month, which saw the president hike import tariffs for multiple countries and subsequently send global markets crashing.

China initially faced tariffs of 34% and when Beijing hit the US with retaliatory rates, a trade war quickly ensued.

The US and China now impose tariffs of above 100% on each other, but representatives from the two countries have this weekend met for high-stakes negotiations.

Read more:
Key details in the UK-US deal
Analysis – the challenge Starmer faces

President Donald Trump, center, with from l-r., Vice President JD Vance, and Britian's ambassador to the United States Peter Mandelson, making remarks on a trade deal between U.S. and U.K. in the Oval Office of the White House, Thursday, May 8, 2025, in Washington. (AP Photo/Evan Vucci)
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Donald Trump, with US vice president JD Vance and Britain’s ambassador to the US Peter Mandelson, announcing the deal. Pic: AP

Britain's Prime Minister Keir Starmer speaks on the phone to US President Donald Trump at a car factory in the West Midlands, Thursday, May 8, 2025.(AP Photo/Alberto Pezzali, Pool)
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Sir Keir Starmer dialled in for the deal announcement. Pic: AP

With its response to Mr Trump, Beijing “made it very clear that the US is very dependent on China in so many ways,” Mr Stiglitz said.

“So they’re beginning now to negotiate, but from a position of strength.”

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Asked if he thinks the UK should have focused on its relationship with the EU instead of the US, Mr Stiglitz said: “Very much so.

“My view is that if you had worked with the EU to get a good deal, you could have done better than what you’ve done.

“If it turns out, in the end, when you work it all out, Trump is unhappy, he’ll run. If he’s unhappy, I pray for you.”

Among the terms in the UK-US trade deal are reduced tariffs on British car and steel exports to the US, while the UK has agreed to remove a tariff on ethanol, used to produce beer.

The agreement also opens a new agricultural exchange, with US farmers being given access to the UK for the first time – though UK food standards on imports have not been weakened.

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Ukraine, Gaza and China: Why Trump’s Middle East tour takes on new importance

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Ukraine, Gaza and China: Why Trump's Middle East tour takes on new importance

Donald Trump’s tour of the Middle East this week has taken on a new importance after a series of surprising developments on the wars in Ukraine and Gaza, and on trade between the US and China.

After a diplomatic flurry over the weekend, it seemed like steps were being taken towards some form of possible peace in both Gaza and Ukraine.

Alongside that, Washington claimed it had made “substantial progress” in trade talks with China, with treasury secretary Scott Bessent going as far as to say a deal had been agreed to cut the US trade deficit. But there was no mention of reducing tariffs.

Scott Bessent and Jamieson Greer speak to the media after trade talks with Chian in Geneva, Switzerland.
Pic: Reuters
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Scott Bessent and Jamieson Greer speak to the media after trade talks with China in Geneva, Switzerland. Pic: Reuters

Mr Trump is due to travel to the Middle East later today on the first major foreign trip of his second presidency, visiting Saudi Arabia and then Qatar and the UAE.

It will coincide with a possible meeting between Ukraine’s Volodymyr Zelenskyy and Russia’s Vladimir Putin, in person in Turkey, and comes after Hamas said it would release a hostage, an Israeli soldier who holds American citizenship.

This leaves Mr Trump facing challenges on three fronts as he visits some of the richest nations in the world.

Zelenskyy and Putin to meet?

More on China

The US president previously claimed he could end the war in Ukraine in one day – something he has not done.

On Sunday, he put pressure on Mr Zelenskyy to sit down and meet with Mr Putin in person after Moscow put forward the proposal for talks in Istanbul.

This was something the leader from Kyiv quickly agreed to and it came after European leaders threatened Mr Putin with fresh sanctions.

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Putin’s call for peace talks genuine?

Thursday could see a potential first in-person meeting between the two leaders since Moscow’s invasion began.

It could mark an extraordinary moment in the ongoing war in Ukraine, however, the countries are seemingly still a long way from actual peace.

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A trade deal or a first step?

After Mr Trump declared war on the existing global trade system in April, hitting allies and foes alike with tariffs, it left many reeling and triggered an escalation with China, which slapped Washington with reciprocal measures.

While those are still in place, the US said on Sunday that the two have agreed a deal to cut the US trade deficit.

However, despite confidence from the US side, China’s vice premier He Lifeng described the meeting as an “important first step” that created a foundation only.

No mention was made of reducing tariffs and this would do little good elsewhere where tariffs continue to add friction to previously freer global trade.

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Israeli soldier to be released

In Gaza, previous efforts to achieve a ceasefire collapsed and Israel implemented a total ban on aid going into the enclave to try to pressure Hamas back to the negotiating table.

With charities warning that the 2.3 million Palestinians in Gaza face a humanitarian crisis, the militant group has said it will release Edan Alexander, an Israeli soldier who holds US citizenship.

It comes after Israel announced it intends to occupy the entire enclave, threatening years of more war.

FILE - Yael Alexander holds a poster of her son, Edan, who was taken hostage by Hamas militants on Oct. 7, 2023, during a weekly rally for families of hostages held in the Gaza Strip and their supporters, in Tel Aviv, Israel, Feb. 22, 2025. (AP Photo/Maya Alleruzzo, File)
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Yael Alexander holds a poster of her son, Edan, who was taken hostage by Hamas militants.
Pic: AP

No exact date was given, but Hamas said it would release the 21-year-old as part of ongoing efforts to achieve a permanent ceasefire with Israel.

His expected release has been described as a “gesture of goodwill” by Steve Witkoff, Mr Trump’s special envoy to the Middle East.

The previously agreed ceasefire failed over disagreement on the transition from phase one onwards.

While Hamas wanted to progress to phase two, where work would be done towards Israel’s permanent withdrawal from Gaza and peace, Israel wanted to extend phase one and release more hostages.

Read more:
A week that could define Trump
Zelenskyy offers to meet Putin
Hamas says it will release hostage

Israel agreed to a framework proposed by the US that would see Hamas release half of the remaining hostages, its main bargaining chip, in exchange for a ceasefire extension and a promise to negotiate a lasting truce.

While Mr Alexander is only one hostage, it will be seen as a promising sign that Hamas returned to the negotiating table and Mr Trump will be in Qatar, the key mediator in so-far unsuccessful peace efforts.

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Trump sets up week that could define his presidency

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Trump sets up week that could define his presidency

It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.

In the time that it took me to fly from London to Saudi Arabia, where President Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.

Chinese and U.S. flags flutter outside the building of an American company in Beijing.
Pic: Reuters/Tingshu Wang
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Could a US-China trade deal be on the way?
Pic: Reuters/Tingshu Wang

On the Gaza war: The Trump administration has confirmed it’s holding talks with Hamas, who say it will release a hostage amid renewed hopes of a ceasefire.

On the Ukraine war: President Volodymyr Zelenskyy has said he is prepared to meet Russian President Vladimir Putin in Istanbul – this announcement came minutes after Trump urged Zelenskyy to agree to the meeting.

On the China-US trade war: The White House says the two countries have agreed to a “trade deal”. China said the talks, in Geneva, were “candid, in-depth and constructive”.

All three of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.

This sets the ground for what could be a truly consequential week for Trump’s presidency and his ability to effect change.

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With his unique style, Trump is seeking to align numerous stars as he embarks on his first foreign diplomatic trip of his second presidency.

For days, it’s been unclear how the week ahead would unfold and which global challenge would be dominant.

The Saudi government has been instrumental as a broker in the Ukraine-Russia conflict and Qatar has been a mediator in the Gaza war.

Trump will visit both countries this week.

Putin under pressure?

On Ukraine, Putin held a late-night news conference at the Kremlin on Saturday at which he made the surprise proposal of talks with Zelenskyy in Istanbul this Thursday.

But he rejected European and US calls for an immediate ceasefire.

The move was widely interpreted as a delay tactic.

Trump then issued a social media post urging Zelenskyy to accept the Russian proposal; effectively to call Putin’s bluff.

President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. 
Pic: Presidential Office of Ukraine/dpa/AP Images
Image:
President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. Pic: Presidential Office of Ukraine/dpa/AP Images

The American president wrote: “President Putin of Russia doesn’t want to have a Cease Fire Agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the BLOODBATH. Ukraine should agree to this, IMMEDIATELY. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the U.S., will know where everything stands, and can proceed accordingly! I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America. HAVE THE MEETING, NOW!!!”

Within minutes, Zelenskyy responded, agreeing to the talks.

“We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy. There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses.” Zelenskyy wrote on X.

The prospect of Putin and Zelenskyy together in Istanbul on Thursday is remarkable.

It raises the possibility that Trump would want to be there too.

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Putin’s call for peace talks genuine?

Israel’s war in Gaza

On Gaza, it’s been announced that US envoy Steve Witkoff will arrive in Israel on Monday to finalise details for the release of Idan Alexander, an Israeli-American hostage being held by Hamas.

The development comes after it was confirmed that Mr Witkoff has been holding discussions with Israel, Qatar and Egypt and, through them, with Hamas.

The talks focused on a possible Gaza hostage deal and larger peace discussions for a ceasefire.

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Gaza after around a year and a half of Israeli attacks.
Pic: Reuters/Mahmoud Issa
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Gaza after around a year and a half of Israeli attacks. Pic: Reuters/Mahmoud Issa

Just days ago, Israel announced a new military plan to move back into Gaza.

When do candid talks become a trade deal?

Meanwhile, officials from the United States and China have been holding talks in Geneva, Switzerland, to resolve their trade war, which was instigated by Trump’s tariffs against China.

Late on Sunday evening, the White House released a statement claiming that a trade deal had been struck.

In a written statement, titled “U.S. Announces China Trade Deal in Geneva”, treasury secretary Scott Bessent said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks… We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”

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Trump 100: A new trade deal and a new pope

Beijing Global Times newspaper quoted the Chinese vice premier as saying that the talks were candid, in-depth and constructive.

However, the Chinese fell short of calling it a trade deal.

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A Qatari gift

In a separate development, US media reports say that Qatar is preparing to gift Trump a Boeing 747 from its royal fleet, which he would use as a replacement for the existing and aging Air Force One plane.

The Qatari government says no deal has been finalised, but the development is already causing controversy because of the optics of accepting gifts of this value.

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‘Have the meeting now!’: Trump says Ukraine should ‘immediately’ agree to direct talks with Russia

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'Have the meeting now!': Trump says Ukraine should 'immediately' agree to direct talks with Russia

US President Donald Trump has demanded that Ukraine should “immediately” agree to direct talks with Russia in a bid to end the war.

It comes after Ukraine’s President Volodymyr Zelenskyy said his team were “ready to meet” Russian representatives following Vladimir Putin suggestion of peace talks, subject to an unconditional ceasefire starting on Monday.

Russia‘s president put forward the proposal for talks in Istanbul on Thursday after European leaders including Sir Keir Starmer threatened him with fresh sanctions if Russia failed to comply with an unconditional 30-day ceasefire starting on Monday.

Analysis:
Why calls for Ukraine talks are likely a delaying tactic from Putin

However, in a post on his Truth Social platform on Sunday, Mr Trump said he was “starting to doubt that Ukraine will make a deal with Putin”.

He urged them to accept the meeting invitation “immediately”, adding “have the meeting now”.

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Putin’s call for peace talks genuine?

Mr Trump wrote: “President Putin of Russia doesn’t want to have a ceasefire agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the bloodbath.

“Ukraine should agree to this, immediately. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the US will know where everything stands, and can proceed accordingly.

“I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America.

“Have the meeting now!”

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Kremlin: ‘We don’t share Starmer’s view’

Shortly after Mr Trump’s post, Mr Zelenskyy posted on X saying: “We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy.

“There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses.”

When Mr Putin first suggested the talks, Mr Trump hailed it “a potentially great day for Russia and Ukraine” and said he would “work with both sides to make sure it happens”.

Read more from Sky News:
Pope Leo calls for Ukraine peace
Michael Clarke Q&A on Ukraine war

Turkish president Recep Tayyip Erdogan also said he “fully supported” Mr Putin’s proposal and was ready to host the talks, after the two leaders spoke over the phone on Sunday.

But security and defence analyst Michael Clarke told Sky News presenter Matt Barbet there is a “long way between now and Thursday” and a “fair bit of brinkmanship” going on.

He said even if the talks do go ahead, “the chances are they’ll extend over a long period and there won’t be a ceasefire as a result of them, and the Russians will keep playing this out”.

European leaders hold call with Ukraine. Pic: Number 10
Image:
European leaders hold call with Mr Trump. Pic: Number 10

Mr Putin’s counteroffer of talks came after Sir Keir, Mr Zelenskyy, French President Emmanuel Macron, recently elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk met in Kyiv.

The leaders said they had secured Mr Trump’s backing after briefing him on the progress made on the so-called “coalition of the willing” plans in a 20-minute phone call.

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