The prime minister was speaking to the US president following hours of speculation as to what would be in the agreement reached with the White House.
As part of the deal, the US lowered the 25% tariff on British car exports to the US to 10%, affecting 100,000 vehicles each year.
Sir Keir said “this is a really fantastic, historic day” that will “boost trade between and across our countries”, while Mr Trump said the agreement would be a “great deal for both countries”.
It is the first trade deal agreed after Mr Trump began his second presidential term in January, and after he imposed strict tariffs on countries around the world in April.
The president said the deal will make both the UK and the US “much bigger in terms of trade” as he thanked Sir Keir, who he said has been “terrific for his partnership in this matter…we have a great relationship”.
Sir Keir has made a trade deal with the US a key goal of his premiership, with the government wanting to avoid punitive tariffs that will hamper its ambition to grow the economy.
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