Vance Hints at Breakthrough in US-UK Trade Talks

U.S. Vice-President JD Vance has said there is a “good chance” that the United States and the United Kingdom will strike a trade deal, as global markets continue to react to President Trump’s tariff flip-flop. 

“We’re certainly working very hard with Keir Starmer’s government,” Vance told UnHerd in an interview published Monday. His comments signal a possible breakthrough in trade relations between the two longtime allies, just weeks after the Trump administration imposed broad 10% tariffs on imports from almost every country, including traditional partners like the UK and France.

Here is What You Need to Know

According to UK government officials cited in a BBC report, discussions with the U.S. have recently gathered pace. While lowering tariffs is a key issue, both sides are believed to be aiming for a more comprehensive agreement — one that would include trade in services alongside goods.

Vance hinted that a deal with the UK could come together more easily than with other European nations. Citing Germany as an example, he said, “They export a lot to the U.S., but they’re pretty tough on a lot of American exports.” By contrast, he said the U.S.-UK relationship was “much more reciprocal.”

UK Business and Trade Minister Sarah Jones welcomed the optimism, saying Britain was in a “good position” to move forward. In an interview with BBC Breakfast, she added: “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.”

Trump’s Tariffs Still Causing Market Turmoil

The remarks come as financial markets remain volatile following the Trump administration’s April 2 announcement of what the president called “Liberation Day” tariffs — a landmark policy move that sent shockwaves across global stock exchanges. Trillions of dollars were wiped from the U.S. stock market in the immediate aftermath.

Though some exemptions have since been made, markets remain shaky. Vance acknowledged this, saying: “Any implementation of a new system is going to make financial markets jittery.” But he stressed that Trump’s tariff strategy is “a long-term play,” aimed at reducing America’s trade deficits.

Critics Urge Caution

Liberal Democrat leader Sir Ed Davey struck a more cautious tone, warning against any rushed decisions. “It seems to me that President Trump is bypassing Congress. We don’t want to copy that,” he said on the BBC’s World at One. He added that any agreement must be “properly examined” by ministers before being finalised.

Europe Must Do More on Security, Says Vance

In his interview, Vance also touched on transatlantic defence issues and the ongoing war in Ukraine. Addressing leaked comments about his views on Europe, he clarified: “I love European people. I’ve said repeatedly that I think that you can’t separate American culture from European culture.”

Still, he reiterated the administration’s view that Europe should take more responsibility for its own security. “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,” he said.

On the war in Ukraine, Vance echoed White House messaging that understanding both sides was key to ending the conflict. “That doesn’t mean you morally support the Russian cause, or that you support the full-scale invasion,” he said. “But you do have to try to understand what are their strategic red lines.”