UK and US on Track for Major Trade Deal, Says JD Vance

Positive Signs for Post-Tariff UK-US Trade Agreement

US Vice President JD Vance has confirmed that the UK and US are “working very hard” on securing a new trade deal, following recent upheaval in global markets caused by sweeping tariffs introduced by Donald Trump.

Despite initial concerns, both sides remain optimistic. Speaking in an interview with UnHerd, Vance expressed confidence that a “great agreement” would soon be reached — one that benefits both countries.

Trump Tariffs Spark Global Tensions

Weeks ago, former President Trump shocked the global economy by announcing steep import tariffs, including a 145% charge on Chinese goods. Though he has since rolled back some of the measures, introducing a 10% blanket duty on most imports, uncertainty remains.

Notably, electronics such as smartphones and laptops have now been exempted. While the UK was initially included in the 10% tariff list, hopes have risen that it could secure an exemption as talks progress.

Strong US-UK Relationship Sets UK Apart

Vance highlighted the “special relationship” between the US and UK, saying Trump has deep admiration for Britain and its institutions. Culturally and economically aligned, he suggested this gives the UK a better negotiating position compared to other nations.

“There’s a real cultural affinity… Fundamentally, America is an Anglo country,” Vance said.

He noted that while countries like Germany are heavily reliant on exports to the US, they impose significant barriers to American goods — a contrast that works in the UK’s favour.

UK Pushes Forward With Trade Talks

Chancellor Rachel Reeves is set to visit Washington later this month to continue economic negotiations during the International Monetary Fund’s Spring meetings.

Both governments are pushing for an agreement that would not only protect British exporters but also encourage US investment in the UK.

Vance Criticises Europe's Defence Dependence

Vance also took aim at Europe’s over-reliance on US defence support. He praised the UK, France, and Poland for maintaining capable military forces but criticised the wider continent for underinvestment.

“Europe must become more independent in its own defence. It’s better for both Europe and the United States,” he said.

Drawing from Cold War history, he argued that strong European leadership benefits the global balance of power — and would have even helped avoid past US missteps like the Iraq War.

Tariffs and Markets: A Balancing Act

Addressing concerns over market volatility, Vance admitted that the implementation of new tariff systems would naturally create jitters.

“This is a long-term play. But we’re listening closely to the business community and markets to fine-tune the approach,” he added.

The UK's Advantage Over the EU in a Post-Tariff World

The UK stands to gain a clear edge over the European Union when it comes to navigating the new US tariff landscape. While EU nations like Germany may face stiffer negotiations due to protectionist trade practices, the UK's flexible and open-market stance — combined with its longstanding cultural and economic ties with the US — puts it in a prime position.

As talks progress, the UK could secure favourable exemptions and agreements that the EU may struggle to match. With strong political alignment and a shared vision for growth, Britain may well be the US’s preferred partner in a reshaped global trade order.

Sources: (SKY.com, BBC.co.uk)