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UK government agrees second deal in three days

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Agreement with US does not remove all tariffs

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British industry welcomes deal

By Andrew MacAskill, Alistair Smout

LONDON, May 8 (Reuters) - British Prime Minister Keir

Starmer on Thursday secured a second trade pact in three days

through a deal with U.S. President Donald Trump, claiming a

much-needed political victory that removes a threat to some of

the UK's must vulnerable industrial sectors.

The U.S. agreed to lower tariffs on British cars and steel in

return for Britain lowering tariffs on American beef and

ethanol.

Starmer said the deal was worth doing so that companies in

the impacted sectors could make plans without worrying about

tariffs of 25% or more, even though a broader deal to cut 10%

baseline tariffs remain under discussion.

"We would like to go further in relation to tariffs, but I

think it's really important that we've been able to get this

deal over the line now, because in that way, we've been able to

protect and save and enhance jobs right here, right now,"

Starmer told reporters in London.

The deal, which follows a landmark free trade agreement with

India on Tuesday, was criticised by British opposition

Conservative leader Kemi Badenoch but initially welcomed by

Nigel Farage, the leader of the anti-immigration Reform Party

who is close to Trump.

"We have an American president who's pro-Britain and we can

take this much further," said Farage, the pro-Brexit

campaigner.

"It's a Brexit benefit that we're able to do this ... this

is a big step in the right direction."

It was also largely welcomed by British businesses and

industries such as auto manufacturing and steel production. They

said it would provide some relief to companies impacted by the

tariffs without giving too much away in return.

The future of steel in Britain has been in doubt, with the

government stepping in to keep blast furnaces running, while car

manufacturers have also spoken up about the threats of tariffs

to their business plans.

The Society of Motor Manufacturers and Traders said the deal

was "great news for industry" and would provide "much needed

relief".

The National Farmers Union largely welcomed it, thanking

Starmer's government for not lowering agricultural standards in

a deal that provides reciprocal market access for beef.

Britain also said the U.S. would give it preferential

treatment in considering other sectors it is exploring further

tariffs on, such as pharmaceutical sectors - a key issue for

AstraZeneca ( AZN ) and GSK.

Trump has also floated taxing the film sector to ensure more

movies are made in Hollywood, but as there is no formal review

as to whether tariffs will be imposed, the sector was not

covered in Thursday's deal, officials said.

Starmer has pinned his entire political strategy on economic

growth. But with the British economy struggling to grow, the U.S

tariffs had added to the pressure on his government.

Last week, he suffered a bruising set of local election results,

which were blamed on his government's unpopular decision to cut

winter fuel or welfare payments.