There’s a renewed sense of optimism surrounding a potential US-UK trade deal, with US Vice-President JD Vance stating there’s a “good chance” an agreement could be achieved.
His comments come at a time when global trade dynamics are being reshaped, particularly following President Donald Trump’s bold move to introduce widespread tariffs earlier this month.
“We’re certainly working very hard with Keir Starmer’s government,” Vance told UnHerd during a Monday interview, highlighting ongoing collaborative efforts between Washington and London.
The international economic landscape shifted dramatically on 2 April when President Trump announced broad tariffs affecting nearly all trading partners. A sweeping 10% “baseline” tariff on imports from the UK, France, and other key allies has been a major feature of this new trade regime.
Despite the tariffs, officials in London have expressed optimism, suggesting talks between the UK and US have seen meaningful progress. Sources indicate that the potential agreement would extend beyond merely reducing tariffs, incorporating both goods and services into its framework.
In the same interview, Vance pointed to the UK as a favourable trade partner compared to other European nations, owing to what he described as “a much more reciprocal relationship”. He cited Germany as an example of a country that benefits significantly from exports to the US while maintaining stricter policies on American imports.
Markets worldwide reacted sharply to Trump’s announcement, resulting in trillions being wiped off the value of the US stock market. However, following a few exemptions announced since, markets have begun to recover, although monthly performance remains negative.
Vance acknowledged the market volatility, saying financial uncertainty is expected during such significant changes, but reiterated that Trump’s tariff policy is intended as “a long-term play.”
“What we want is to see lower trade deficits, really across the board,” he added. Amid leaked remarks that hinted at discord among senior US officials regarding Europe, Vance took the opportunity to reaffirm his respect for the continent.
“I love European people. I’ve said repeatedly that I think that you can’t separate American culture from European culture,” he remarked.
He also stressed the necessity for Europe to take greater responsibility for its own defence. “It’s not in Europe’s interest, and it’s not in America’s interest, for Europe to be a permanent security vassal of the United States,” Vance stated.
Shifting focus to the war in Ukraine, Vance responded to criticism over the administration’s posture towards Russian President Vladimir Putin. He maintained that resolving the conflict requires an understanding of both sides’ motivations.
“That doesn’t mean you morally support the Russian cause or that you support the full-scale invasion,” he explained.
“But you do have to try to understand what are their strategic red lines, in the same way that you have to try to understand what the Ukrainians are trying to get out of the conflict,” he continued.
Tensions remain high as Russia launched its deadliest offensive on Ukraine this year, killing at least 35 people. In response, Ukrainian President Volodymyr Zelensky extended an invitation to Trump to visit his war-torn nation ahead of any potential US- Russia deal.
