What started as a day of remembrance quickly shifted gears into a moment of global economics.
While Keir Starmer was set to mark VE Day with solemn commemorations, the spotlight swung back to international politics as Donald Trump unexpectedly teased a major Transatlantic trade deal late last night.
By the time the sun rose, the news had landed: the US and UK had struck a trade agreement, one that Trump called “great” and “really good for both sides.”
Trump and Starmer Seal a Deal That’s Been Years in the Making
During an on-camera call, Starmer praised the negotiators and the long-standing bond between the two nations.
“There are no countries closer than ours,” he said, standing beside British ambassador Lord Mandelson in the Oval Office.
Trump, clearly pleased, credited their shared history and allegiance, calling it an “honour” to make the UK his first big post-tariff-deal announcement.
“This is a full and comprehensive agreement,” Trump added.
“It’ll cement our relationship for years to come.”
What’s Actually in the Deal? The Devil’s in the Details
While the headlines may sound celebratory, experts are urging caution.
Beneath the surface of this seemingly rosy agreement are some complex trade-offs.
For starters, those brutal 25% US tariffs on UK cars?
They’ll be eased—but only up to a quota of 100,000 vehicles annually.
Anything above that still gets hit hard.
That’s roughly in line with what the UK exports each year, so it’s more of a band-aid than a full fix.
And on pharmaceuticals—a key UK industry—there are worries about potential US pressure.
Tens of thousands of jobs could be on the line depending on how those terms shake out.
Concessions in the Mix: Cars, Tech and Farm Goods
It looks like Britain will give some ground too.
Expect the UK to ease up on a planned digital sales tax, likely aimed at big US tech firms.
There are also signals that tariffs on American cars and some farming products will be lowered.
However, British food standards are reportedly staying firm.
The Government insists that the deal won’t open the door to things like chlorinated chicken or hormone-fed beef.
Interest Rate Cuts and Economic Hopes
Bank of England Governor Andrew Bailey gave the news a thumbs-up, announcing a cut to interest rates and calling the deal “very welcome.”
He emphasized that anything reducing uncertainty is good for the economy—and this agreement, if handled right, could boost business confidence in both countries.
Not Everyone’s Celebrating Just Yet
While the government is framing this as a historic moment, there’s pushback brewing.
Critics worry that Starmer might be giving too much away to secure American approval—especially when it comes to farming and tech.
The Liberal Democrats are calling for Parliament to get a vote on the final agreement, and MPs are pressing the government to keep British agricultural standards safe.
One Tory MP even raised concerns in the House about issues like antibiotics in pig farming and the broader impact on local producers.
Brexit Strategy Meets US Diplomacy
There’s a broader political game in play here.
Starmer is hoping to lock down this deal with the US before unveiling a major Brexit “reset” during an EU summit later this month.
But that balancing act comes with risks.
Trump hasn’t been shy about his feelings toward the EU, once claiming it was created to “screw” America.
Any hint that the UK is cozying up too closely with Brussels could test this freshly signed deal.
Starmer Says It’s Not Europe vs America—It’s Both
Through it all, the PM is staying firm on one point: Britain doesn’t have to choose between Europe and America.
He’s pushing a “both-and” strategy, insisting that national interest means cooperating with all allies, not picking sides.
“The US is a vital economic and security partner,” a No10 spokeswoman said.
“This deal reflects that—and the Prime Minister will update the public later today.”
The Political Optics: From Back of the Queue to Front of the Line
Brexiteers are already calling this a win.
They’re pointing out that while Barack Obama once warned the UK would be “at the back of the queue” after leaving the EU, Britain is now the first to strike a post-tariff deal under Trump’s new trade push.
The timing also follows hot on the heels of another big announcement: a trade deal with India, which Starmer called “landmark.”
So, What Happens Next?
While this deal looks like a diplomatic victory on the surface, there’s still plenty to unpack.
More details will be released soon, and it’s those fine print clauses—on tech, pharma, farming, and digital rights—that could shape public and political reaction.
What’s clear for now: the UK is walking a tightrope between global superpowers, and the path ahead is filled with both opportunity and risk.