Donald Trump Warns Starmer: No Special Deals Coming – Fresh Blow to UK Trade Hopes

The US has warned that the UK will have to offer something very special if it wants to make a trade deal without tariffs. Keir Starmer’s team is speaking with US officials every day to prevent further economic problems caused by President Trump’s trade tariffs.

Many countries, including the UK, now face a 10% tariff when sending goods to the US, after Trump paused tougher tariffs that had shaken global markets. Kevin Hassett, one of Trump’s top advisers, said it would take an “extraordinary” deal to lower that 10% rate.

Starmer hopes to secure a trade deal with the US, but the tariffs have already caused big concerns in financial markets. Hassett told CNBC that unless something truly special is offered, the 10% tariff will stay in place. He added that the US is negotiating with about 20 countries and is close to finalizing two of those deals.

Starmer denied claims that the US president isn’t responding to him, saying they’re in regular contact. He also rejected the idea that avoiding a fight over the tariffs hasn’t helped the UK, saying the close relationship with the US is still valuable.

He said no UK business group is urging him to start a trade war in response. Instead, talks are ongoing with the US to reduce the damage of the tariffs.

Sarah Breeden from the Bank of England said this is the biggest shift in trade policy in 100 years and will affect UK growth. When Trump recently announced a 90-day pause on some tariffs, it brought some relief to global markets, including in London.

The UK is working not only with the US on a trade deal but also trying to build stronger trade ties with other countries to protect the economy. Chancellor Rachel Reeves plans to negotiate with US officials during her trip to Washington later this month. She will also attend a UK-EU summit in May to improve relations with the EU.

Trump said on Wednesday he would delay higher tariffs on countries like Japan and the EU but warned that tariffs on Chinese goods would rise to 125% as the trade fight with China continues. China has promised to fight back.

Imports of cars, steel, and aluminium to the US still have a 25% tariff. Japan’s stock market dropped by over 5% as fears over the tariffs continue.

Starmer admitted that a deal with the US alone wouldn’t be enough to solve the bigger problems caused by the trade war. He said the UK needs to take strong action to grow its economy.

There are also worries that Trump might target the UK’s pharmaceutical industry with a 25% tax. The government is working hard to convince the US not to do this, as the sector is vital to the UK’s economy. The UK sends nearly £9 billion worth of medicines to the US every year and also hosts many US-owned pharmaceutical factories.