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3w ago

Starmer and Trump Agree to Accelerate UK-US Trade Talks as Car Tariffs Loom

The leaders discussed ongoing negotiations for an economic prosperity deal, aiming to counteract the impact of a 25% US tariff on imported cars set to begin April 2.

Starmer and Trump met at the White House in February (Photo: Carl Court/AFP/Getty Images)
A drone view shows shipping containers stacked at the Port of Felixstowe in Felixstowe, Britain, February 17, 2025. REUTERS/Chris J. Ratcliffe/File Photo
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Overview

  • UK Prime Minister Keir Starmer and US President Donald Trump held a phone call on March 30, agreeing to expedite discussions on a UK-US trade deal.
  • The planned 25% tariff on imported cars, effective April 2, threatens significant economic repercussions for UK car manufacturers like Jaguar Land Rover and Aston Martin.
  • The UK government has opted not to retaliate against US tariffs, including those on steel and aluminum, focusing instead on securing a favorable trade agreement.
  • Trump has framed the tariffs as part of a broader strategy to reshape global trade, with similar measures targeting China, Mexico, and Canada.
  • Starmer is also balancing his role in European-led peace initiatives for Ukraine, as US support for Ukraine under Trump appears increasingly uncertain.