Key Points

The two leaders began by discussing the ongoing trade negotiations between Britain and the US on Friday noon, Xinhua news agency reported.

According to a readout from 10 Downing Street, the leaders addressed the ongoing "productive trade discussions" between the UK and the US.

Both sides signalled optimism about reaching an agreement.

They also exchanged views on the key international issues, including the situations in Ukraine and Iran, as well as recent military action taken against the Houthis in Yemen.

Their phone talk follows the US administration's decision earlier this month to impose sweeping tariffs on countries across the world.

Though Trump later introduced a 90-day pause on some of the tariffs while keeping a baseline of 10 per cent tariffs on imports to America, including on British goods, the British car industry, as well as steel and aluminum exports, still faces a 25 per cent tariff if relevant products are sold to the US.

In an interview on Monday, US Vice President J.D. Vance said there was a "good chance" a trade deal with Britain could be reached, adding that Washington is working closely with the British government.

On Thursday, Trump also hinted during remarks at the White House that a state visit to Britain is being planned for September.

It is the first time both Starmer and Trump have spoken since the latter unveiled an array of tariffs on countries on April 2 in what he dubbed "liberation day".

Chancellor Rachel Reeves is due to hold talks with the White House next week amid efforts to strike a trade deal, which Britain hopes can help soften the brunt of the tariffs.

However, Trump said on Thursday he was in "no rush" to reach any deals because of the revenues his new tariffs are generating.

Trump said lots of countries wanted to reach deals "frankly ... more than I do", and that any agreements would come "at a certain point".

- IANS