Donald Trump hints at first trade deal – and it's bad news for Keir Starmer

Donald Trump has hinted that South Korea could be the first country to sign a new trade deal with the United States – in a move which would come as a significant blow to Sir Keir Starmer, who has made closer US-UK ties a priority since entering Number 10. Scott Bessent, the recently appointed US Treasury Secretary, revealed that technical-level negotiations with Seoul are set to begin next week, describing talks as “moving faster than I thought”.

Speaking at the White House on Thursday, Mr Bessent said: “We had a very successful bilateral meeting with the Republic of South Korea today. We may be moving faster than I thought and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week. So South Koreans came early. They came with their A game and we will see if they follow through on that.”

The likely fast-tracking of a US-Korea trade deal will frustrate the Prime Minister, who is hoping to reboot Britain’s stalled push for a post-Brexit agreement with Washington.

Although Mr Trump has not ruled out a deal with the UK, there is growing concern in Westminster that Britain may no longer a top priority for the White House.

Sir Keir, who has offered Mr Trump a state visit later this year, has previously said he is “committed to strengthening our trade relationship with the United States” and wants to strike “ambitious agreements” in key sectors.

Nevertheless, senior officials fear that Mr Trump’s focus on the Indo-Pacific could leave the UK sidelined.

Mr Trump gave little away when asked which countries were next in line, saying only: “I’d like to meet them all. That would be nice. I’d like to take care of all of them but we have many of them there and they all want to meet.

“They want to meet about trade. And we are making some great inroads and great deals.”

His remarks came ahead of a planned visit to Rome for Pope Francis’s funeral, during which the US president is expected to hold informal talks with several world leaders – including allies in Asia and Europe – with tariffs and trade policy high on the agenda.

The news will turn up the heat on Sir Keir to deliver results on foreign policy and international trade, after facing criticism for offering “warm words but little substance” on post-Brexit commercial deals.

Separately, Mr Trump also doubled down on his claim that Washington and Beijing are in contact over tariffs – despite denials by China’s foreign ministry.

Asked by reporters to name officials involved in talks, he said: “They had a meeting this morning, so I can’t tell you – it doesn’t matter who they is.

“We may reveal it later. But they had meetings this morning and we have been meeting with China.”

However, Chinese spokesman Guo Jiakun said: “China and the United States have not conducted consultations or negotiations on tariffs, let alone reached an agreement,” dismissing the claim as “false news.”

Chancellor Rachel Reeves is in Washington this week for the IMF Spring Meetings, where she has been pushing to revive momentum on a UK-US trade deal.

She will meet Mr Bessent in Washington on Friday after days of discussions with global finance ministers at the IMF Spring Meetings, where Ms Reeves has championed free trade while warning against economic complacency.

She has insisted there is “a deal to be done” with Washington, despite Mr Trump’s recent decision to impose sweeping tariffs on UK exports, including a 25% levy on cars, steel and aluminium. While she has ruled out concessions on food standards and online regulation, Ms Reeves has not dismissed the possibility of a reciprocal tariff cut on British and American vehicles.

Speaking ahead of the meeting, she said there was a growing understanding of Mr Trump’s aims, but warned that developed economies “can’t afford to be agnostic or naive” about the strategic risks involved in global trade.