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Reading: Starmer’s gamble on Trump seems to have paid off with UK-US deal – however the satan will likely be within the element
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Michigan Post > Blog > Politics > Starmer’s gamble on Trump seems to have paid off with UK-US deal – however the satan will likely be within the element
Politics

Starmer’s gamble on Trump seems to have paid off with UK-US deal – however the satan will likely be within the element

By Editorial Board Published May 8, 2025 5 Min Read
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Starmer’s gamble on Trump seems to have paid off with UK-US deal – however the satan will likely be within the element

On the politics, this can be a win for Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves. And a giant one: simply on the level he actually wanted it after horrible native elections and few indicators the financial system goes the best means.

For months, the prime minister has been doubling down on a chunky guess – that there have been extra advantages than prices to hug shut Donald Trump, essentially the most technicolour, unpredictable and contentious political determine of the fashionable period.

There have been moments when this gambit felt like a mistake, when tariffs had been first imposed and never subsequently diminished for the UK and, individually, as a deal over Ukraine slid within the mistaken path.

That is additionally a win in the case of timing. Not solely have we crushed nations like Japan, which had reportedly been additional up the queue, however this deal comes earlier than the Could 19 reset with the EU, which has at all times risked setting again British relations with the White Home if Mr Trump took exception to strengthening ties to a bloc he frequently assaults.

However at 3pm right this moment, when Mr Trump makes his announcement that the UK is the “big and highly respected country” to get the primary commerce deal of his second presidency, he’ll have the ability to declare this has paid off.

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👉Hearken to Politics at Sam and Anne’s in your podcast app👈

It’s a “substantial” deal, I am informed. Even when we solely hear the heads of phrases right this moment, it would enable the prime minister to say he has saved jobs – an necessary boast at this unsure juncture.

The extent of the financial win will nonetheless must be weighed up.

The query is: how a lot will it ship and the way a lot will it assist?

The large query is how a lot it is going to be to assist the (newly state-run) UK metal business and the (fragile) UK automotive business, which faces 25% tariffs for items going to the US. Will they now be set at 10% or zero?

One other massive query is whether or not the ten% tariffs on the whole lot else heading to the UK will likely be diminished to zero – one thing authorities sources had been taking part in down only a fortnight in the past.

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What may a US-UK commerce deal imply for business?

Then there’s the query of what we’ve given in return – for the Trump White Home certainly could have demanded a tough discount.

Ministers weren’t denying they’d enable cuts to the digital companies tax – a bung for billionaire house owners of corporations like Mark Zuckerberg’s Meta, which owns Fb, at a time when taxes are going up and advantages are happening within the UK.

In the meantime, some UK sectors are more likely to face extra competitors – quotas of US meals merchandise are more likely to be elevated, even when meals requirements is not going to be lowered.

This can be a win for affected person diplomacy and for the Starmer method to the White Home over the EU shouting. He’ll benefit from the second.

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