Let's eat out in US city (7)
I believe the answer is:
seattle
'us city' is the definition.
(I've seen this before)
'let's eat out' is the wordplay.
'out' is an anagram indicator (out can mean wrong or inaccurate).
'lets'+'eat'='letseat'
'letseat' anagrammed gives 'SEATTLE'.
'in' acts as a link.
(Other definitions for seattle that I've seen before include "coastal city" , "Largest city in the state of Washington" , "? American seaport" , "City of north-west USA" , "city in north-west America" .)