Donald Trump savaged Labour’s controversial Chagos Islands agreement as a “terrible deal” in his first ever meeting with Andy Burnham.

The US President branded it “ridiculous” while the Prime Minister appeared to soften his stance, agreeing that he was “going to look at it”.

It marked a striking change in tone from just hours earlier, when Mr Burnham insisted he was “determined” to find a resolution that would allow the agreement with Mauritius to go ahead despite US opposition.

The thorny issue was the most awkward moment as the two leaders held face-to-face talks in the Big Apple.

Speaking to reporters afterwards, President Trump said: “I don’t support it. I think it’s terrible. It was a terrible deal. They [Mauritius] all of a sudden say they have ownership.

“Somebody has ownership that never showed up before after decades and centuries. I think it’s ridiculous.

“No, we were talking about that, and [the islands are] strategically very important. Very important. You know, we had to send our B2 bombers…back home to Missouri, as opposed to flying for a short period of time.

“It’s amazing how strategic it is, and I think the prime minister is going to be looking at it.”

The Labour leader, who was sitting next to him, agreed and said “yeah”.

Reform UK leader Nigel Farage said the Chagos deal is now “dead”.

He posted on X shortly after President Trump’s remarks: “The Chagos deal is dead. Thank God.”

En-route to New York, where he was attending the United Nations General Assembly, Mr Burnham doubled down on plans to hand the Chagos Islands to Mauritius.

The Prime Minister said he will do “everything possible” to find a resolution to the deal.

Britain agreed to cede sovereignty of the Indian Ocean islands after more than two centuries of control when Sir Keir Starmer was in No 10 last year..

Under the plans the UK would retain a 99-year lease over its biggest island, Diego Garcia, and its strategic military base.

But the legislation ⁠required to implement the agreement was paused in April because of opposition from America.

Senior Tories have warned that the Chagos “surrender” deal has fanned the flames surrounding Argentinian President Javier Milei trying to claim the Falklands.

The Chagos Islands are home to the strategically important joint US-UK Diego Garcia military base, currently being used to refuel and service fighter jets striking Iran.

The deal would hand the islands to Mauritius while spending £101million annually for 99 years to lease back the military base.

The staggering costs would put the total price tag at £34billion in nominal terms while opponents of the deal have suggested it could cost closer to £50billion.

Chagos aside, Mr Burnham will have been pleased with how the 40-minute showdown went.

The two leaders spoke about Israel, Ukraine, the Middle East crisis, Immigration and the Falklands.

Mr Trump said relations between the US and the UK are “more up” now that Andy Burnham is Prime Minister than when Sir Keir Starmer held the role.

During the meeting, Mr Burnham claimed he had “established a good connection” with Mr Trump, adding that the pair had “taken that further today” as they discussed trade, energy and immigration among other topics.

The Prime Minister also stressed that Britain has a “positive story” to tell about itself, in an attempt to draw a line under 10 years of post-Brexit turbulence, in his UN debut.

Following his meeting with the US President Mr Burnham met with European Commission President Ursula von der Leyen, Ukrainian leader Volodymyr Zelensky and Australian PM Anthony Albanese.

Later, he addressed world leaders at the United Nations, warning that Russia is targeting Britain with AI to create a “distorted and untrue narrative” about the country.

Announcing a new National Centre for Information Defence, he said: “In recent years we have seen an industrial-scale assault by hostile actors on the information environment in the UK and many of our allies.

“Russian agencies have used every means at their disposal to spread lies and disinformation and prey on people’s fears.

“They’ve used bots and fake websites. Falsified newspaper articles.

“Forged the branding of 28 British organisations – including universities and the BBC. They’ve amplified far right narratives. And we have evidence that they tried to interfere with the 2019 General Election.”

Mr Burnham said that they have also tried to “stoke tensions and unrest in the wake of horrific events”.

“The idea that anyone would try to use such things to their advantage is just repulsive – but it is what they do,” he said..

The Prime Minister said that the Kremlin spends around £1.3 billion each year on manipulating information.

“We’re talking about an insidious campaign that reaches into people’s homes and twists what they feel about their own country and community – creating a narrative of decline, stoking division and sowing despair,” he said.

“On top of that we have seen cyber-attacks on our companies and institutions. And we know that AI will multiply the threat.”

Mr Burnham said that the West had “tiptoed” around this for too long, warning that people who are “struggling with the cost of living” or a “young person not in employment” are going to be “much more vulnerable to this kind of influence”.

Reform’s shadow Chancellor, Robert Jenrick, said: “The disastrous Chagos deal appears dead in the water. Good riddance. It should never have taken the US President to stop the British government sabotaging itself. The billions of pounds that would have been sent to Mauritius must urgently be directed to our armed forces.”