US Vice President JD Vance indicated there was a “good chance” a trade deal could be reached with the UK, as markets continue to react to America’s recent global trade policy changes.
“We’re certainly working very hard with Keir Starmer’s government,” Vance said Monday in an interview with the UnHerd website.
Global stock markets have experienced significant turbulence since April 2, when President Donald Trump announced sweeping tariffs on imports from nearly every country. The unprecedented trade policy included a 10% “baseline” tariff on all imports from the UK, France, and other long-standing trade partners.
UK government sources suggest recent trade discussions with the US have been making good progress. Any potential deal would likely cover more than just lowering tariffs, addressing elements of trade in both goods and services.
In his UnHerd interview, Vance suggested a US-UK trade deal would be easier to achieve than with other European countries due to “a much more reciprocal relationship.” He contrasted this with Germany, which he characterized as exporting heavily to the US while being “pretty tough on a lot of American” exports.
UK business and trade minister Sarah Jones welcomed Vance’s comments, saying the UK was in a “good position.” She confirmed ongoing talks but declined to provide a timeline, adding: “Nobody wants tariffs. No one wants a tariff war. We want to secure a deal with the US. We think that would be the best way to secure jobs and growth in our country.”
Liberal Democrat leader Sir Ed Davey cautioned that while a “good trade deal with the US could bring huge benefits,” Trump is “an unreliable partner who breaks deals whenever he feels like it.” Davey warned that Trump and Vance “must not be allowed to bully their way into a bad trade deal for the UK.”
After Trump’s “Liberation Day” tariffs announcement, stock markets worldwide declined sharply, with trillions of dollars wiped from the US Stock market in subsequent days. The president has since granted some exemptions, and markets showed recovery signs on Monday, though they remain down for the month.
Vance defended the administration’s approach, saying any implementation of a new system will make financial markets “jittery” and that Trump is committed to the tariff strategy as “a long-term play.” He added, “What we want is to see lower trade deficits, really across the board.”
The vice-president also expressed affinity for Europe after disparaging remarks between him and other top US officials were leaked from a private chat. “I love European people. I’ve said repeatedly that I think that you can’t separate American culture from European culture,” Vance stated.
He emphasized that Europe needs to strengthen its own defense capabilities, saying, “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.”
Regarding Ukraine, Vance addressed criticism about the US relationship with Russian President Vladimir Putin. He reiterated the administration’s position that ending the war requires understanding both sides. “That doesn’t mean you morally support the Russian cause, or that you support the full-scale invasion,” Vance said, adding, “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.”
On Sunday, Russia launched its deadliest attacks on Ukraine this year, killing at least 35 people and prompting Ukraine’s President Volodymyr Zelensky to invite Trump to visit Ukraine before any deal is struck with Russia.
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