The US–UK trade relationship is facing renewed uncertainty after president Donald Trump warned he could revise or withdraw elements of the bilateral trade deal, citing tensions over the UK's stance on the Iran conflict.
The agreement, signed in May 2025 between president Trump and UK prime minister Keir Starmer, was seen as a key economic milestone for the UK, offering relief to sectors such as automotive, steel and aluminium. However, the deal is now under pressure as geopolitical disagreements spill into economic relations.
President Trump said the agreement "could be changed", expressing frustration that the UK had not supported US military action against Iran. "We gave them a good trade deal," he said, signalling that trade policy could be used as leverage in broader diplomatic disputes.
Mr Starmer has maintained that the UK will not join the conflict, stating that it is "not our war", despite pressure from Washington. The position has been echoed by UK chancellor Rachel Reeves, who warned that tensions are already having a significant impact on the global economy and could weigh on growth and inflation.
Speaking on the relationship between the two countries, Mr Stramer's spokesperson said, "The special relationship with the US exists on multiple levels and we have a close relationship, which spans trade, diplomacy, national security, culture and beyond. It's far bigger than any individual issue."
Despite the rhetoric, negotiations between the two countries have continued in parallel, including recent agreements in sectors such as pharmaceuticals. However, uncertainty around the durability of the broader trade deal remains.
For businesses, the developments serve as a reminder that even established agreements can be subject to change, particularly in an environment where trade policy and geopolitics are closely intertwined.