‘I am not going to yield’: Starmer defies Trump as US president threatens to rip up 2025 UK trade deal

Speaking in an interview, Trump suggested the deal signed with the UK last year could be altered, saying it was “better than I had to” and “can always be changed”. He also criticised Britain’s stance during the Iran war, claiming the country was “not there when we needed them,” remarks that reflect growing frustration within the US administration, The Guardian has reported.

The warning comes despite the agreement being seen as a key milestone in UK-US relations when it was reached in 2025. The deal reduced tariffs on several goods and was presented by both sides as a sign of strong economic ties. However, Trump’s latest comments mark the first direct indication that the arrangement could be reconsidered.

‘This is not our war’: Starmer

At the centre of the dispute is Britain’s refusal to join US military operations against Tehran. Prime Minister Keir Starmer has repeatedly maintained that “this is not our war”, and declined requests to deploy naval support or allow broader use of British military bases, according to The Telegraph.

Speaking in the UK Parliament Wednesday, he said, “My position on the Iran war has been clear from the start. We’re not going to get dragged into this war. It is not our war, and a lot of pressure has been applied to me to take a different course, and that pressure included what happened last night. I am not going to change my mind. I am not going to yield. It is not in our national interest to join this war, and we will not do so.”

🚨 WATCH: Keir Starmer says he will not “yield” to Donald Trump after he threatened to rip up the UK-US trade deal over Iran

“I am not going to change my mind. I am not going to yield. It is not in our national interest to join this war” pic.twitter.com/ewlwD010FA

— Politics UK (@PolitlcsUK) April 15, 2026

The disagreement has fed into wider diplomatic friction, with Trump describing the “special relationship” as being in a “sad” state.

Starmer’s ‘tragic mistake’ in closing North Sea oil: Trump

Trump has also criticised Britain’s domestic policies, including energy and immigration, arguing they could undermine economic performance. According to The Telegraph, Trump said, “I like Starmer, but I think he’s made a tragic mistake in closing the North Sea oil. You see your energy prices are the highest in the world. And I think he’s made a tragic mistake on immigration”.

He added, “Your country is being invaded by illegal immigrants from all over the world, including those from prisons, drug dealers, people from mental institutions.”

Economic pressure intensifying tensions

The economic fallout of the conflict has also sharpened tensions. The disruption to the Strait of Hormuz could push up living costs, as remarks from Reeves and Starmer have pointed out.

The West Asia War will be the main topic of discussion at the IMF’s spring sessions, as reported by The Guardian, which has already warned that a global recession may be imminent and lowered Britain’s economic growth estimate due to the conflict.

Despite the rhetoric, UK’s Chief Secretary to the Treasury James Murray said ties between the two countries extend beyond any single disagreement. Speaking to the Sky, cited by The Telegraph, he said, “The special relationship between the UK and the US is deep, it is long-standing. It’s bigger than any single occupant of Downing Street or the White House”, stressing continued cooperation on security, intelligence, and trade, even as differences emerge over foreign policy.

Supporting US in war strengthens diplomatic ties for Trump

Trump’s remarks also fit into a broader pattern of linking trade relations to geopolitical alignment. Earlier this year, he warned Spain of potential trade consequences after it denied US access to military bases during the Iran conflict, highlighting how defence disagreements are increasingly spilling into economic policy, according to the BBC’s reporting.

At the same time, the Starmer government has signalled a growing interest in strengthening ties with the European Union, suggesting a possible shift in strategic priorities amid uncertainty in relations with Washington.

The latest exchange underscores how the Iran war is reshaping alliances, with economic partnerships now closely tied to political and military cooperation.