The British government is reviewing its agreement to transfer sovereignty of the Chagos Islands to Mauritius after U.S. President Donald Trump described the deal as terrible.

Defense Secretary Wes Streeting said Wednesday that officials must reassess the pact because the United States does not support it in its current form. The review comes after Trump's remarks during a bilateral meeting with Prime Minister Andy Burnham on the sidelines of the United Nations General Assembly in New York on Tuesday.

Under the proposed agreement, originally negotiated under former Prime Minister Keir Starmer, Britain would cede control of the remote Indian Ocean archipelago while paying an average of £101 million per year to lease back the strategic military base on Diego Garcia for at least 99 years. The base serves as a key joint UK-US facility.

The deal has been on hold since April, when the Trump administration withdrew support. Streeting told broadcasters that no payments to Mauritius would be made during the review process.

Trump highlighted the islands' military importance, noting their role in supporting long-range bomber operations. He stated that the arrangement was ridiculous and that Britain would be looking at it again.

Conservative leader Kemi Badenoch called on the government to scrap the deal entirely, while Reform UK leader Nigel Farage described it as dead. The opposition has long argued that ceding sovereignty undermines British and allied security interests in the region.

The Chagos Islands, part of the British Indian Ocean Territory, have been the subject of long-running legal disputes with Mauritius. The latest review reflects ongoing concerns over national security priorities and the need for strong U.S. backing on strategic assets.