JD Vance has said the US is trying to secure a “great” trade deal with the UK, as Donald Trump’s tariffs heighten global trade tensions.
The vice president said Mr Trump is “working very hard” on an agreement with Britain that could see damaging import taxes eased or lifted.
His remarks are a boost to Sir Keir Starmer and Rachel Reeves, with Mr Trump’s trade war threatening to wipe out economic growth and force Labour into further spending cuts or tax hikes in the autumn budget.
It comes after senior Trump advisor Kevin Hassett last week said deals with two countries, thought to be the UK and Australia, were close.
British officials fear a 10 per cent universal tariff levied by the US president could be a permanent feature under his administration. But they are hopeful a trade deal could see the 25 per cent tariffs on steel, aluminium and automotive imports lifted or slashed.
President Trump’s initial sweeping tariffs triggered global economic concerns and stock market declines.
However, subsequent adjustments have seen tariff rates reduced to 10 per cent for most countries, with further exemptions for electronics like smartphones and laptops, even those imported from China, which had faced a 145 per cent levy.
Officials in Sir Keir’s government had hoped to secure a carve-out before Mr Trump’s tariffs were introduced, and talks have continued since the measures came into effect.
In an interview with UnHerd, vice president Vance expressed optimism about reaching an agreement. He said the US is “working very hard” with the UK on negotiations.
“We’re certainly working very hard with Keir Starmer’s government,” Mr Vance said.
“The president really loves the United Kingdom. He loved the Queen. He admires and loves the King. It is a very important relationship. And he’s a businessman and has a number of important business relationships in [Britain]. But I think it’s much deeper than that.
“There’s a real cultural affinity. And, of course, fundamentally, America is an Anglo country.
“I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries.”
Mr Vance said the “reciprocal relationship” between the US and UK gave Britain a more advantageous position than other European countries when it comes to negotiating new trade arrangements, adding: “While we love the Germans, they are heavily dependent on exporting to the United States but are pretty tough on a lot of American businesses that would like to export into Germany.”
