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• BBC World
• Tue Apr 15 2025

A UK-US deal sounds good but it is all about the detail

US Vice-President JD Vance said there was a "good chance" a trade deal could be reached with the UK, suggesting it would be easier to land than with other European countries due to "a much more reciprocal relationship".

UK business and trade minister Sarah Jones welcomed Vance's comments and said talks to secure a deal with the US were ongoing, but declined to provide a timeline on their progress.

"Nobody wants tariffs. No one wants a tariff war. We want to secure a deal with the US," she added.

The real question about positive comments by Vice-President JD Vance and Jones about a UK-US trade deal, is what they actually mean by the term "deal".

Just after Prime Minister Sir Keir Starmer's visit to the White House in February, it was rather telling that the UK delegation referred to what was being negotiated as an "economic deal".

This was meant to show that this "deal" was not about an extensive free trade agreement, covering nearly all goods.

In Trump's first term, negotiations between the UK and US progressed fairly well up until the point controversial issues about medicine pricing and food standards emerged.

Trump's team told me back then that they were waiting to see how close the UK would remain to European Union rules after Brexit.

This time around, the "deal" seems to have been about science, technology and artificial intelligence cooperation in return for avoiding tariffs.

The US has wanted to talk about the UK's "tech tax" on mainly US digital companies, and has raised issues about the Online Safety Act.

However, there is a big problem now.

The US has now levied a 10% tax on UK imports as part of what it called its "reciprocal tariffs".

But there is no general problem with this trading relationship. In fact, the UK buys more from the US than the other way around.

The mood music from Washington is that this 10% tariff is not for negotiation with anyone. That is the baseline tariff that has been levied on nearly all of America's trading partners.

Making an exception for one country would simply invite significant trade diversion.