UK Prime Minister Sir Keir Starmer and US President Donald Trump stood before cameras hailing what they called a “historic” agreement between two of the world’s largest economies.

The announcement? The US will lower some tariffs on British cars, steel, and aluminium — tariffs Trump himself had imposed — and in return, the UK will allow in more US agricultural products, especially beef.

But scratch the surface, and analysts, business groups, and opposition politicians are warning that this deal is no sweeping breakthrough. In fact, it may be little more than a modest patch job, spun into a political victory.

Here’s what you need to know.

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What’s actually in the deal?

• The US will cut its car import tax from 25 per cent to 10 per cent, but only for up to 100,000 British-made vehicles a year — roughly the same number the UK exported last year.

• Tariffs on steel and aluminium, which Trump had raised to 25 per cent, will be eased, providing much-needed relief for UK metal producers.

• The US secured a beef export quota of 13,000 metric tonnes and expects to expand ethanol and other agricultural sales to Britain.

• No formal, signed treaty was announced — just an in-principle agreement, light on public details.

Why the excitement?

For the UK government, this was about averting an immediate crisis. Business Secretary Jonathan Reynolds warned that without this agreement, thousands of jobs at British carmakers like Jaguar Land Rover could have been lost within days.

“This was very serious,” he told the BBC. “It would have meant people would have lost their jobs without this breakthrough.”

For Trump, it’s a chance to showcase his deal-making credentials and paint the agreement as a win for US farmers and ranchers — longtime Republican allies.

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But here’s the catch.

While political leaders praise the deal, many experts are urging caution.

“This is not a historic deal with the US,” Conservative leader Kemi Badenoch bluntly said, accusing the government of giving up more than it gained.

Duncan Edwards, head of BritishAmerican Business, summed up the business reaction: “It’s better than yesterday, but it’s definitely not better than five weeks ago. I’m trying to be excited, but I’m struggling a bit.”

Pros and cons at a glance

✅ Pros:

• Avoids immediate car manufacturing job losses.

• Rolls back Trump’s self-imposed tariffs, restoring previous trade levels.

• Lets the UK claim symbolic victory as the first Western country to strike a post-Brexit deal with Washington.

• Provides relief to struggling UK steelmakers.

❌ Cons:

• Applies only to specific sectors; most UK goods still face a 10 per cent US duty.

• Car tariff cuts are capped — no room for growth beyond existing export levels.

• US wins significant new access for agricultural exports, long a sticking point in trade talks.

• No parliamentary vote or full transparency on details.

• Sets a precedent that other countries (like the EU) may now surpass by holding out for better terms.

The bigger picture

Trade experts say this agreement doesn’t meaningfully change the overall balance of UK-US trade. “The devil will be in the details,” warned Michael Pearce of Oxford Economics, adding that they are making no changes to economic forecasts based on this announcement.

Meanwhile, key sectors like pharmaceuticals remain under threat, with Trump repeatedly signaling he wants to impose new import taxes to boost domestic US production.

For now, this deal offers temporary relief — but little in the way of long-term, structural gains. And by rushing to be first, the UK may have inadvertently opened the door for others to negotiate even stronger deals down the line.

As Liberal Democrat leader Sir Ed Davey put it: “When it comes to any trade deal — and especially one with someone as unreliable as Donald Trump — the devil will be in the detail.”

The UK may have scored a political headline, but when the dust settles, this deal looks more like damage control than a historic achievement.

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