Keir Starmer urged to 'maximise pressure' on Trump for better trade deal

Britain must “maximise pressure” on President Trump during this week’s state visit for a better trade deal which will support the nation’s struggling steel sectors, a cross party group of MPs has urged. Despite the UK agreeing an “economic prosperity deal” in May to spare the country the full brunt of US tariffs, the Business and Trade committee warns British exporters now trade “on terms which are worse than before President Trump came to office”.

Its members wants to US to be pushed to agree the “final terms” of a deal which will end uncertainty, secure supply lines and drive investment to the UK.

The US accounts for nearly a fifth (18%) of UK trade but the MPs say “critical” British industries including steel, aluminium and pharmaceuticals are in a “state of uncertainty”. They further warn the UK now has “less favourable terms” in some areas that the European Union.

Their report says it is “vital” the Government hikes up pressure on the US during the state visit and afterwards to agree final terms for an economic prosperity deal which will “end the threat of future sectoral tariffs” and improve terms in areas where the EU has negotiated a competitive advantage.

Liam Byrne, the former Chief Secretary to the Treasury who chairs the committee, said: “[We] can’t escape the truth that Britain now trades with its biggest partner on terms that are worse than the past, the EU has in places secured a better edge, and key sectors of our economy still face the peril of new tariffs. That means jobs hang in the balance and investment waits on certainty.”

The Food and Drink Federation has warned the UK faces higher tariffs than the EU on goods including ice cream (30% instead of 15%), soft drinks (20% instead of 15%) and cheddar cheese (22% instead of 15%).

The MPs calls for the final deal to be open to full democratic scrutiny in Parliament.

My Byrne said: “There is a great prize for us to seize. Britain’s science, AI and the City of London, joined with America’s tech giants and venture markets, could set the standards of this century and help secure Western leadership over China for decades to come. But that means we have got to turn paper promises into a binding bargain that ends the tariff tempest that is battering British exporters and investors.”

Britain and the US have £1.2trillion invested in each other’s economies.

A Government spokesperson said: “Our special relationship with the US remains strong. Thanks to our trade deal, the UK is still the only country to have avoided 50% steel and aluminium tariffs, and we continue to partner on technologies such as AI, quantum, and cyber security in our trillion-dollar tech sectors.

“We will work with the US to implement this landmark deal as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets through the plan for change, as well as welcoming the President on this historic state visit.”