Donald Trump has warned that the US-UK trade deal signed last year could be changed, as he described the bilateral relationship as being in a 'sad state'. In an interview with Sky News, the US president said the agreement, which reduced tariffs on cars, aluminium and steel, was 'better than I had to' give and could 'always be changed'.
Trump's comments come amid sharp disagreements over US military action in Iran, which has triggered economic fallout affecting the UK. Chancellor Rachel Reeves expressed 'frustration and anger' over the strikes, while Prime Minister Keir Starmer said he was 'fed up' with rising energy bills linked to the conflict.
Trump accused Britain of not being 'there when we needed them' on Iran, and criticised UK policies on energy and immigration, calling them 'insane' and 'destroying your country'. He also suggested a permanent ceasefire with Tehran could be reached before King Charles's state visit to the US later in April.
Downing Street pushed back against Trump's characterisation, with Starmer's spokesperson saying the special relationship 'exists on multiple levels' and is 'far bigger than any individual issue'. The UK has increasingly leaned towards the EU, citing the bloc's economic and security benefits amid US unreliability.
Reeves, in Washington for IMF meetings, is set to meet US Treasury Secretary Scott Bessent, who defended the Iran war as worth 'a small bit of economic pain'. The IMF has cut UK growth forecasts due to the conflict, but Bank of England Governor Andrew Bailey said the UK's resilient banking system leaves it well placed to handle the fallout.
