Starmer and Trump discuss 'productive negotiations' towards US-UK trade deal, Downing Street says.

The leaders also agreed that the negotiations on an 'economic prosperity deal' would continue 'at pace' this week, the Downing Street readout said.

Sir Keir Starmer and Donald Trump have discussed the 'productive negotiations' towards a UK-US 'economic prosperity deal', Downing Street has said.

The two leaders discussed a possible deal in a phone call on Sunday and agreed negotiations will 'continue at pace', according to a statement.

A Downing Street spokesperson said: 'The prime minister spoke to president Trump this evening. The president opened by wishing His Majesty the King best wishes and good health. They discussed the productive negotiations between their respective teams on a UK-US economic prosperity deal, agreeing that these will continue at pace this week. Discussing Ukraine, the prime minister updated the president on the productive discussions at the meeting of the Coalition of Willing in Paris this week. The leaders agreed on the need to keep up the collective pressure on Putin. They agreed to stay in touch in the coming days.'

Earlier this week, Mr Trump announced a new 25% tariff on all imported cars - threatening UK producers' largest single export market. British manufacturers such as Jaguar Land Rover, Bentley, Aston Martin and Rolls-Royce stand to be worst affected by the tariffs.

But the government has signalled it would not retaliate - mirroring its response to the tariffs on steel and aluminium imposed globally by the Trump administration earlier this month.

Tariffs are a key part of Mr Trump's efforts to reshape global trade relations. He plans to impose what he calls 'reciprocal' taxes on 'liberation day' that would match tariffs and sales taxes levied by other nations. The extent of potential tariffs and countries affected remains unclear.

The UK hopes an economic deal with the US would spare the country in a broader round of reciprocal tariffs.

On Friday, Mr Trump said he was open to carving out deals with countries seeking to avoid US tariffs, but those agreements would be negotiated after 2 April.

Mr Trump has already placed a 20% tax on all imports from China. He also placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products in addition to the duties on all steel and aluminium imports, including those from the UK.

Starmer and Trump discuss 'productive negotiations' towards US-UK trade deal, Downing Street says

Prime Minister Keir Starmer and President Donald Trump discussed 'productive negotiations' towards a US-UK 'economic prosperity deal' in a phone call on Sunday. They agreed that negotiations would continue 'at pace' this week. The leaders also discussed Ukraine and the need to keep up pressure on Putin. Mr. Trump announced a new 25% tariff on all imported cars, which could affect UK car manufacturers like Jaguar Land Rover, Bentley, Aston Martin, and Rolls-Royce. The UK government has indicated it would not retaliate against these tariffs, similar to its response to previous tariffs imposed by the Trump administration.