N. Peter Kramer’s Weekly Column
Recently, 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 now is what Vance and Jones actually mean by the term "deal".
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 the US trading partners.
Trump making an exception for one country would simply invite significant trade diversion.
