Is US-UK trade deal at risk? Trump’s warning raises questions

The US and UK relationship have been on edge since the start of the Iran conflict over various grounds.

In a recent development, President Donald Trump has threatened to rip up his trade deal with Britain, citing “America's trade deal with the UK can always be changed.”

The warning comes after the Chancellor Rachel Reeves criticized Trump for his lack of an exit plan for war in Iran. As a result of this ongoing war, the world is witnessing a high cost of living, she stated.

"We gave them a good trade deal, better than I had to," the US president told Sky News on Wednesday, when asked about the state of the special relationship. In May 2025, the UK reached a landmark trade deal with the US, cutting some import taxes on cars, aluminium, and steel.

Britain’s 2025 trade agreement with the US was framed as a strategic win, securing a 10 percent baseline tariff that undercut the 15 percent rate imposed on EU goods.

Additionally, while most nations faced steeper penalties, British steel and aluminum imports were taxed at 25 percent, effectively half the rate applied to the rest of the world.

In recent months, the relations between Donald Trump and Keir Starmer have soured due to Starmer’s persistent reluctance regarding Britain's involvement in the Middle East war.

Talking to reporters, Trump said, “It's the relationship where when we asked them for help, they were not there. When we needed them, they were not there.”

“When we didn't need them, they were not there. And they still aren't there,” he added.

Trump has frequently targeted Sir Keir over his careful approach to the conflict, including not allowing the US to use its air bases in the Middle East and sending ships for the Strait of Hormuz blockade.

On one occasion, Trump expressed that he liked Starmer, but his government’s policies related to energy and immigration are “insane.”

Trump also clarified that the US-UK turbulent state of relationship will not “at all” affect the upcoming royal state visit.

"I've known the King for a long time, and he's not involved in that process," Trump clarified.