It includes a UK arm of Stargate, a Trump-backed AI infrastructure project led by OpenAI, and a host of AI data centres around the UK. American firms are announcing 31 billion pounds ($42 billion) investment in the UK’s AI sector, including $30 billion from Microsoft for protects including Britain’s largest supercomputer.

British officials say they have not agreed to scrap a digital services tax or water down internet regulation to get the deal, some details of which have yet to be announced.

The British government is learning that when it comes to deals with the US administration, the devil is in the detail. In May, Starmer and Trump struck a trade agreement that reduced US tariffs on Britain’s key auto and aerospace industries.

But talks on slashing duties on steel and aluminum to zero from their current level of 25% have stalled, despite a promise in May that the issue would be settled within weeks.

The British Chambers of Commerce said failure to cut the tariffs would “greeted with dismay” by the British steel industry.

Potentially awkward conversations

Starmer wants a successful state visit to balance weeks of bad news that saw him lose not just an ambassador but Deputy Prime Minister Angela Rayner — who quit over a tax error on a home purchase — and a senior aide. Fourteen months after winning a landslide election victory, Starmer’s government is struggling to kickstart Britain’s sluggish economy and his Labour Party is lagging in the polls.

Leslie Vinjamuri, president of the Chicago Council on Global Affairs, said the trip was likely to be “a difficult visit for the prime minister, much more so than for the US president.”

For Trump, “this plays well at home, it plays well abroad. It’s almost entirely to President Trump’s advantage to turn up to Britain and be celebrated by the British establishment,” she said.

Starmer will be bracing for awkward questions about Jeffrey Epstein when he and Trump hold a news conference at Chequers. Days before the state visit, Starmer fired Britain’s ambassador to the US, Peter Mandelson, over the envoy’s past friendship with the convicted sex offender.

Questions about Epstein overshadowed Trump’s last visit to the UK in July, when he sat with Starmer at his golf club in Scotland. As they took questions from journalists, Trump was repeatedly peppered with queries about Epstein as his government faced pressure from back home to release government records into the criminal case of the now-disgraced financier, who authorities say killed himself in 2019.

Difficult discussions on Ukraine, Middle East

There are also potentially difficult conversations to be had over Ukraine and the Middle East.

Starmer has played a major part in European efforts to shore up US support for Ukraine. Trump has expressed frustration with Russian President Vladimir Putin but has not made good on threats to impose new sanctions on Russia for shunning peace negotiations. As he left Washington for the UK on Tuesday, Trump appeared to put the onus on Ukrainian President Volodymyr Zelenskyy, saying, “He’s going to have to make a deal.”

Last week’s Russian drone incursion into NATO member Poland drew strong condemnation from European NATO allies, and pledges of more planes and troops for the bloc’s eastern flank. Trump played down the incident’s severity, musing that it “could have been a mistake.”

The king gave Trump a gentle nudge in his state banquet speech on the strength of the trans-Atlantic relationship. Charles noted that “as tyranny once again threatens Europe, we and our allies stand together in support of Ukraine, to deter aggression and secure peace.”

Starmer also departs from Trump on Israel’s war in Gaza, and has said the UK will formally recognise a Palestinian state at the United Nations later this month.

Trump has threatened to penalize Canada during trade negotiations for making a similar move.

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