Britain and the United States agreed to a "breakthrough" trade agreement that cuts some tariffs on cars, aluminum and steel by Donald Trump, and the Prime Minister said it would save thousands of British jobs.

Keir Starmer said it was a "wonderful, historical day" and he announced the deal for the first time since Trump announced global tariffs last month.

Speaking with workers at the Jaguar Land Rover Plant in Solihull, Starmer said the agreement saved work in the threatened automotive and steel industries.

TUC Secretary-General Paul Nowak said the deal “brings us back to the edge so many workers breathe easily”.

However, critics say it failed to address many of the high tariffs that still exist between the two countries.

"The reality is that U.S. exports to Britain are still higher than they did at the beginning of the year," said John Denton, secretary general of the International Chamber of Commerce. He said it was unclear what would happen to the industries clearly covered by the deal, such as medicines.

The United States agreed to lower the 25% tariff rate on UK steel and aluminum exports to zero. The concession will be seen as the lifeline of the steel industry, the United States is an important export market and has collapsed.

U.S. tariffs for up to 100,000 British cars will also be reduced to 10%, far below the 27.5% tax rate originally announced by Trump. The United States is the main export market for British cars, worth more than £9 billion last year.

Washington has promised to provide “preferential treatment” to the UK’s pharmaceutical industry, and Trump has also threatened tariffs, although no tariffs have been set and American aerospace manufacturers will receive priority access to high-quality British aerospace components in the UK. Baseline tariffs for most commodities still exist 10%.

British beef farmers can also be allowed to enter the U.S. market and join a small group of countries including Australia, while American farmers will receive new entry into the U.K.

Starmer said the measure would not downplay food standards, and importing hormone-treated beef or chlorinated chicken remains illegal.

"I know people along the way urged me to walk away and go down with another relationship. We didn't." "We did the tough yard. We lived in the room. I'm happy here and said through their workforce that I think the deal is important."

But he added that it was "a job won, not a job done" and that Britain will continue to negotiate in areas including Tech, with ministers hoping to improve cooperation with the United States and the film industry where Trump also threatens tariffs.

British ambassador to the United States Peter Mandelson said the "technical partnership" will be negotiated "in the coming months." U.S. Vice Chairman JD Vance is expected to play a key role.

The news took place in an orchestrated call between Starmer and Trump, and both ends of the press gathered with leaders.

Conservative leader Kemi Badenoch criticized the deal, claiming that Britain had been "stand up" by Trump. "When Labor negotiated, Britain lost. We cut tariffs - the United States tripled. Keir Starmer called this "home-history". It's not historic, we're just erected!" However, shadow business minister Andrew Griffith said the tariff reduction would be "welcome to export business."

The trading group representing Detroit automakers also criticized the deal, claiming it would impose unfair punishment on U.S. automakers working with Canada and Mexico. The U.S. Automotive Policy Commission (AAPC) said in a sharply worded statement that its members, including Ford, General Motors and Jeep maker Stellantis, faced a 25% import tariff on cars assembled in Canada and Mexico.

“We are disappointed that the government prioritizes the UK before our North American partners,” Blunt said. “Urgent vehicles with less U.S. content are now cheaper than USMCA-compliant vehicles from Mexico or Canada.”

The final stages of negotiations fell into chaos after British officials scrambled to announce the deal as Trump prepared to finalize the deal Wednesday night. The industry figures are only known in the early hours of Thursday.

Starmer said he was "not at all" bounced into the deal, but "don't know the exact day" will be completed. "If I had planned it better, I wouldn't have called President Trump in the second half of the Arsenal V PSG game. That's how it turned out, and that's our discussion last night on how to make this deal."

British government officials said the deal was the starting point for the two sides to continue negotiations. Business and Business Minister Jonathan Reynolds told reporters that the UK will continue to try to reduce the benchmark tariff by 10%. He said the agreement does not include any offer regarding the Digital Service Tax, Online Security Act or the NHS.

Trump's trade adviser Peter Navarro later told reporters that negotiations on digital service tax are still continuing. “The digital tax has spread like a bad virus around the world…it’s basically targeting American companies,” he said.

Britain is the first country to reach an agreement with Trump since he announced global tariffs on "Liberation Day". This puts the global stock market in several days until Trump brings a 90-day pause that expires in July.

The United States is under pressure to strike tariff agreements to boost its economy. For months, economists have warned Trump's trade strategy to risk a recession, and the president and his closest officials insist that it will set the stage for the White House and finalize dozens of trade deals.

U.S. officials are in talks with other leading economies, including India and Japan, but the agreement has not yet been implemented. Finance Minister Scott Bessent said this week that he had talks with 17 countries.

In Westminster, Liberal Democrats called for a vote on the deal, saying that if MPs are deprived of their voice would show “total disrespect for the public”, especially as negotiations continue, there is more detail surrounding the potential for controversial issues such as food safety.

US Agriculture Secretary Brooke Rollins told reporters she hopes to expand the agreement to include all meats and visit the UK next week to raise this point, adding: “No more unfair treatment than our agricultural industry.”

Navarro later told reporters outside the White House that despite the use of chlorine and hormones, British consumers still wanted to import chicken and beef from the United States.

He called the hygiene standards “a counterfeit tool used to curb very good American agricultural products” and said the market should decide, adding: “We don’t believe (the people of the UK) taste American beef and chicken, they would rather not have it.”

National Farmers Alliance Chairman Tom Bradshaw said he welcomes reciprocity visits to the U.S. beef market but is concerned that imported U.S. beef will be produced at a lower standard.