U.S. Vice President JD Vance has expressed optimism about reaching a new trade agreement with the United Kingdom, saying there’s a “good chance” of a deal being finalized. This comes amid rising global economic uncertainty sparked by President Donald Trump’s recent sweeping tariff policy.
“We’re certainly working very hard with Keir Starmer’s government,” Vance told the UnHerd website during an interview on Monday, hinting at strengthening transatlantic ties despite global market instability.
The news arrives just weeks after President Trump introduced a blanket 10% “baseline” tariff on imports from countries including the UK, France, and Germany. The move sent shockwaves through global financial markets, wiping trillions off the U.S. stock exchange within days.
US-UK Trade Talks Progressing Despite Tariff Tensions
According to UK government sources, negotiations with the United States are showing positive signs. While details remain under wraps, officials have hinted that the potential deal could go beyond tariff reductions. It may include agreements on digital trade, financial services, and fairer access to each other’s markets.
Vance described the UK as a “reciprocal partner” and suggested that a deal with London may be easier to finalize than with other European nations. He pointed out Germany as a nation that enjoys a strong export market in the U.S. but imposes significant barriers on American products in return.
“There’s a mutual respect with the UK that makes progress easier,” Vance said.
Global Markets React to Trump’s ‘Liberation Day’ Tariffs
President Trump’s April 2 announcement of the sweeping tariffs — dubbed “Liberation Day” — triggered a steep sell-off in global markets. The new tariffs affect nearly every U.S. trading partner, raising concerns of a global trade war.
Although exemptions have since been made, investor confidence remains shaky. U.S. markets showed modest gains on Monday but still remain down for the month.
“These shifts will naturally make markets jittery,” Vance said. “But the long-term goal is to reduce trade deficits and strengthen American industries.”
Strategic Intent Behind the Tariff Strategy
The administration has stood firm behind its economic nationalism strategy. Vance clarified that the tariff plan is not a short-term tactic, but part of a long-term effort to re-balance U.S. trade.
He stated, “What we want is to see lower trade deficits, really across the board.”
According to the U.S. Department of Commerce, the U.S. trade deficit hit $68.9 billion in February 2025. The new tariffs aim to shift that balance by incentivizing domestic production and leveling the playing field with long-time trade partners.
Vance Calls for Stronger European Defense
In the interview, Vance also touched on European defense capabilities, calling on Europe to take greater responsibility for its own security. He echoed past White House statements that Europe must not remain, in his words, a “security vassal” of the United States.
“It’s in neither Europe’s nor America’s interest for Europe to be permanently dependent,” he said.
This aligns with past comments from NATO allies encouraging increased defense spending across Europe, particularly as tensions continue in Eastern Europe.
Ukraine Conflict and the Russia Dilemma
Vance also addressed rising concerns over the U.S. stance toward Russia, amid ongoing criticism that Washington is softening its tone toward President Vladimir Putin.
“I don’t think seeking understanding is the same as offering support,” he said. “You have to try to understand what Russia sees as its strategic red lines, just like you need to know Ukraine’s goals in this war.”
His comments follow a deadly weekend in Ukraine, where Russian missile strikes killed at least 35 civilians. Ukrainian President Volodymyr Zelensky has since urged President Trump to visit Ukraine before engaging in any future talks with Moscow.
UK Stance: Deal Only If It Benefits Britain
UK Prime Minister Keir Starmer has been cautious in response to the U.S. tariff strategy. He has emphasized that any trade agreement must benefit Britain and align with national interests.
“We’re open to talks, but only if the deal makes sense for the UK,” Starmer said in a recent statement.
Analysts believe the UK is pushing for better access to U.S. markets for services such as finance and law, in exchange for tariff flexibility. As one of America’s closest allies, Britain may have a stronger negotiating position than other EU economies.
