US Vice-President JD Vance has said there is a “good chance” that the United States and United Kingdom could strike a new trade agreement, as the two countries engage in active negotiations in the wake of President Trump’s sweeping global tariffs.
Speaking in an interview with UnHerd on Monday, Vance confirmed that the US is “working very hard with Keir Starmer’s government” to explore opportunities for a deal that goes beyond tariffs, encompassing both goods and services.
The comments come as markets continue to feel the aftershocks of Trump’s dramatic trade policy shift. On 2 April, the President introduced a blanket 10 per cent “baseline” tariff on imports from almost every nation—including key allies such as the UK and France—sparking fears of a full-scale trade war and sending global stock markets into a spiral.
While financial markets have begun to recover slightly, they remain volatile, with investor confidence shaken by the unpredictability of Trump’s “Liberation Day” tariffs. Trillions of dollars were wiped from the US stock market in the days following the announcement, with only partial exemptions issued since.
UK government sources suggest talks with Washington have been progressing positively, though no timeline has been confirmed. Business and trade minister Sarah Jones welcomed Vance’s remarks and said the UK was in a “good position,” stressing that “nobody wants tariffs” and the government’s priority is securing a deal that supports jobs and growth.
“There is a lot of ongoing dialogue with the US,” Jones told the BBC. “But we’re not going to sign a deal unless it’s the right one for the UK.”
Vance expressed optimism, suggesting a bilateral trade deal with Britain would be “easier” to achieve than with other European countries, referencing Germany’s trade surplus and its tougher stance on American exports.
“We have a much more reciprocal relationship with the UK,” he said, hinting that this could pave the way for deeper cooperation.
However, political caution remains. Liberal Democrat leader Sir Ed Davey warned against being pressured into a poor agreement. “Trump is an unreliable partner who breaks deals whenever he feels like it,” he said. “He and his sidekick JD Vance must not be allowed to bully their way into a bad trade deal for the UK.”
The broader economic backdrop remains tense. Vance acknowledged that major changes to global trade systems are bound to unsettle financial markets but insisted that the administration views the tariff strategy as a “long-term play” aimed at reducing trade deficits.
The vice-president also sought to soften recent headlines around US-EU relations, following leaked private remarks that had sparked controversy. “I love European people,” he said. “American culture is deeply connected to European culture.”
He also reiterated the administration’s stance that Europe needs to bolster its own defence capabilities. “It’s not in Europe’s or America’s interest for Europe to be a permanent security vassal of the United States,” Vance said.
On Ukraine, he defended the White House’s approach to seeking an eventual resolution. “You have to try to understand both sides—not to support the invasion, but to grasp their strategic objectives,” he explained.
His remarks follow the deadliest attack on Ukraine this year, with more than 35 civilians killed over the weekend. In response, Ukrainian President Volodymyr Zelensky invited Trump to visit the country before any deal is made with Russia—raising the diplomatic stakes for the US administration.
