Has the UK been Shafted? Trump’s Tariff Tactics Leave Starmer with a Hollow Win

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Donald Trump’s first trade deal since his self-declared “liberation day” has been sealed with the United Kingdom — and while the optics were celebratory, the substance is under heavy scrutiny. Sir Keir Starmer and Trump stood shoulder to shoulder, beaming as they announced a rollback of some tariffs, including the removal of a 25 per cent tariff on British steel and the reduction of tariffs on UK-made cars from 25 per cent to 10 per cent. However, critics argue that while the headlines suggest triumph, the reality is more sobering: the UK has been outmanoeuvred.

 

From Labour’s perspective, the timing and symbolism of the deal couldn’t have been better. Amid efforts to rescue the struggling British steel industry and revitalise car manufacturing, Starmer needed a win — or at least the appearance of one. Labour aides were quick to frame the deal as a key success for Starmer’s diplomacy, portraying him as the man who broke through where the Conservatives failed. Being the first country to strike a deal with Trump since his return to office gave Starmer bragging rights, but the details behind the smiles suggest a far more modest achievement.

 

Former trade secretary Kemi Badenoch did not hide her disdain. “Keir Starmer called this ‘historic’. It’s not historic, we’ve just been shafted!” she declared, framing the deal as little more than a repackaged concession. While the agreement does ease some immediate economic pressure, many underlying problems remain unresolved — and in some cases, untouched. Nigel Farage of Reform UK offered a more balanced take, calling the deal “a step in the right direction,” but noted that the baseline 10 per cent tariff will remain on all UK exports, placing Britain on par with countries that have no special relationship with the US.

 

Moreover, the deal sidesteps one of the major obstacles British exporters face: non-tariff barriers. These include regulatory hurdles and bureaucracy, which previously added an estimated 17 per cent to the cost of UK cars sold in the American market. Despite speculation, there has been no commitment to reduce these burdens. In fact, the absence of clarity on red tape and sectors like US beef suggests that the "big, beautiful" deal long hoped for may still be a distant prospect.

 

Nonetheless, Trump used the occasion to amplify his message of renewed American economic strength. He called the UK “truly one of our great allies” and “right at the top,” and predicted that his tax cuts would cause the US economy to rise “like a rocket ship,” enabling more purchases from Britain.

 

Such remarks were warmly received in Downing Street, with Starmer being cast — at least for the day — as Trump’s first preferred partner on the world stage. This strategic alignment may prove politically useful for both leaders, with Starmer facing restive backbenchers after disappointing local election results, and Trump under pressure to demonstrate a tangible global strategy behind his “America First” economic rhetoric.

 

Peter Mandelson, a seasoned political operator, suggested that this agreement is only the start of a broader process, hinting at future negotiations over deeper technological cooperation and market access. That may yet bear fruit, but for now, the deal represents more of a public relations victory than a commercial breakthrough.

 

Ultimately, both sides got what they needed in the short term: Starmer softened the impact of Trump’s earlier tariffs and secured a headline-grabbing diplomatic moment, while Trump showcased his ability to draw in willing partners. Yet as the full terms emerge, Britain may come to see this less as a breakthrough, and more as the price of being first in line — without the leverage to demand more.

 

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Trump Hails 'Full and Comprehensive' Trade Deal with UK Amid Modest Economic Expectations

 

  Adpated by ASEAN Now from The Times  2025-05-09