JD Vance drops huge hint on UK-US trade deal after Donald Trump unleashes tariff war

US Vice President JD Vance has said there is a "good chance" a trade deal could be secured between the US and UK.

In good news for Keir Starmer, Donald Trump's sidekick said the US government was "working very hard" with the PM's team to reach an agreement. He said the US President "loved the Queen" and "loves the King" and values the important relationship between the two nations.

Ministers and officials have been scrambling to make a trade deal with the US but were unable to get one finalised before Mr Trump unleashed global tariffs on his so-called World Liberation Day at the start of the month. The move has rocked the world economy, sent stock prices tumbling and sparked fears of a global recession.

Unpredictable president Mr Trump slapped 10% tariffs on all imports of British goods into the US, on top of a 25% tariff on all foreign cars imports and all steel and aluminium entering the US. He imposed higher tariffs on dozens of other countries, including 20% on the EU, 26% on India and 49% on Cambodia, but has since announced a pause on their introduction, instead maintaining a 10% baseline rate.

High tariffs on China have remained, with the two countries locked in a dangerous trade stand-off. The erratic president has however exempted electronics such as smartphones and laptops from the 145% charge on imports from China.

In an interview with UnHerd website last night, Mr Vance suggested a US-UK trade deal could be close after expressing his aim to come to a "great agreement that's in the best interest of both countries". He said: "We're certainly working very hard with Keir Starmer's government" on a trade deal.

He went on: "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."

He suggested would be easier to secure than with other European countries due to "a much more reciprocal relationship", 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."

Chancellor Rachel Reeves will aim to continue negotiations for an economic deal with the US later this month when she travels to Washington to attend the International Monetary Fund's spring meetings with other finance ministers.

Asked about Mr Vance's comments on Tuesday morning, adding: "We've got good relationships that have been built up over a long period of time. We are negotiating still. I don't have a timeline for you this morning on that but of course the conversations are still taking place.

"We're coming from a good starting point and we hope to negotiate a deal. Nobody wants tariffs. Nobody 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."

She went on: "Of course, we know that officials and the Secretary of State and others have been working really hard on our relationships with the US, on our trading relationship and on that negotiation, and I don't have anything more to add today.

"We obviously were in a good position to be able to have these conversations. We've built up good relationships, so I'm positive about the future, but of course, I don't have anything further to say other that the conversations are ongoing and we're hopeful to have an outcome."