JD Vance says Trump ‘working very hard’ with UK on negotiating trade deal

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 adviser 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.

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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.

Business secretary Jonathan Reynolds on Tuesday said he had been clear with US counterparts that he did not support Mr Trump’s approach on tariffs.

But he said there is a need in some instances to look at how to rebalance world trade to ensure greater fairness.

He said: "I don't support the kind of approach to unilateral tariffs that the US has pursued. We've made that very clear to our US friends and colleagues, but there are issues as to how parts of trading works around the word, and there is a need to look at how we can that fairly: how we can consider where in some cases countries are not operating to the same rules that we might expect here in the UK?

"These are issues that need to be addressed as part of countries coming together to find answers to that.

"So I don't support the kind of action the US has taken, but I do understand there are grievances there which we've got to appreciate in this country too."

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.

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In an interview with UnHerd, vice president Mr Vance expressed optimism about reaching an agreement, saying 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.

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“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.”

Business and trade minister Sarah Jones welcomed Mr Vance's comments but refused to comment on the progress of negotiations.

She told LBC: "The conversations are ongoing, I can't update more than that.

"We know we're in a good position. We are having good conversations.

"The secretary of state (Jonathan Reynolds) has been having good conversations with his partners and there is a deal there to be done, but as to when that will be done, I wouldn't be able to tell you, but it's positive that the vice president is positive about our negotiations."

The Liberal Democrats cautioned against Britain “lowering food standards, selling out the NHS or watering down protections for children online” as part of a trade deal with the US.

Mr Reynolds has ruled out lowering food standards, but it is thought changes to Labour’s online safety bill or digital services tax are on the table in talks over a deal.

Lib Dem leader Sir Ed Davey said: “A good trade deal with the US could bring huge benefits, but Trump is an unreliable partner who breaks deals whenever he feels like it. He and his sidekick JD Vance must not be allowed to bully their way into a bad trade deal for the UK.

"The Government must commit to protecting our NHS, farmers and online safety laws, not barter them away just to appease Donald Trump."

Ms 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.

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With just months before another major fiscal event for the chancellor, any sign of a softening in the US stance on tariffs will be a welcome boost. Ms Reeves currently has ?9.9 billion of headroom against her self-imposed fiscal rules, based on forecasts set out at the spring statement, but Mr Trump’s tariffs threaten to completely wipe that out.

If her headroom disappears, Ms Reeves could announce further cuts to welfare or other spending, or be forced into a second round of politically painful tax hikes since the general election.