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Starmer trumpets US trade deal as MPs rebel on cuts
Prime Minister Keir Starmer and US President Donald Trump shake hands at a joint press conference in the East Room at the White House, February 27, 2025

SIR KEIR STARMER has trumpeted a trade deal with US President Donald Trump as a glimmer of good news amid mounting political turmoil, with Labour MPs rebelling over his austerity plans.

More than 40 backbench Labour MPs told Sir Keir that they could not support his welfare cuts and urged a change of course, setting the stage for a big Commons rebellion when the plan is voted on next month.

Downing Street has ruled out a policy shift and is instead touting the trade deal, the first Trump has agreed since embarking on a wild ride of unilateral global tariffs, as proof of the Prime Minister’s wisdom in bending over backwards to appease the volatile US President.

However, experts said that the pact had been over-hyped and would be limited in its short-term benefits with many details still to be worked out.

Trump revealingly claimed that it “will bring the United Kingdom into economic security alignment with the United States.”

The president also claimed that Britain would now be open to “virtually all of the products produced by our great farmers” and will fast-track US imports.

“We’ll also receive new market access for American chemicals, machinery and many other industrial products that weren’t allowed,” he added. Apparently Britain is to buy a lot of aeroplanes from Boeing.

Sir Keir has in return secured some relief from 25 per cent tariffs on British cars, which will now be taxed at just the 10 per cent rate Trump has imposed universally, and steel will also benefit from reductions.

Unite general secretary Sharon Graham said: “Workers will be relieved as today’s agreement provides some respite on US tariffs and lessens immediate threats to jobs.

“However, the government would be wrong to think this marks a long-term solution to the challenges facing UK industry.

”The tariff issue has starkly revealed the world is becoming increasingly unpredictable and measures must be in place to properly protect UK industry.

”Our industries need to be actively backed, not left hanging in the wind.

“Government action should include a reduction in energy costs, clear rules on buying British goods and a reform of the ZEV mandate which protects car workers’ jobs.”

The Stop Trump Coalition said the deal is not about trade but appeasing Trump over tariffs.

A coalition statement said: ”There is nothing ’comprehensive’ about the deal.

”The only supposed gain for the UK is the removal of tariffs that Trump invented out of whole cloth and imposed on the world.

”This deal is not a ’win’ for Keir Starmer. Caving in to Trump’s bullying is not something to be celebrated.

”The deal does not come near to removing all the existing tariffs, with the ‘baseline’ 10 per cent tariff staying in place.

”This is still a much worse trade position than before Trump imposed his tariffs in April.

”Trump also retains the ability to impose new tariffs on the UK at any time, or tear up the deal.

”Starmer has made the UK the first country in the world to capitulate to Trump. This is a moment of deep shame.”

The signatories to the welfare letter, which include some centrist and newly elected Labour MPs, told Sir Keir: “The planned cuts of more than £7 billion represent the biggest attack on the welfare state since George Osborne ushered in the years of austerity and over three million of our poorest and most disadvantaged will be affected.”

Calling Chancellor Rachel Reeves’s cuts “the wrong medicine,” they urge delay until there is a full assessments of their impact and for “a genuine dialogue with disabled people’s organisations.

“We also need to invest in creating job opportunities and ensure the law is robust enough to provide employment protections against discrimination. Without a change in direction, the green paper will be impossible to support.”

Ministers took solace from a cut in interest rates announced by the Bank of England, from 4.5 per cent to 4.25. 

The TUC and Unite the union both welcomed the move, with Unite general secretary Sharon Graham calling it “necessary and long overdue.

“However, we will need more serious action to reverse over a decade of falling living standards for workers and communities,” she added.

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