The BBC economics editor Faisal Islam has said the United States “need a deal” with the United Kingdom “more than the other way round” as talks continue between the two nations.
This week, US vice president JD Vance said he believed there was a “good chance” that a “great agreement” could be reached between America and Britain on trade.
There are hopes that any deal could secure lower tariffs – or even exemptions – for the UK after Trump’s ‘liberation day’ announcement this month.
However, Faisal Islam has suggested that Keir Starmer’s government actually find themselves in a stronger position than many may believe, despite the tariffs that have caused global havoc.
In a post on X, the BBC economics editor said that although Vance’s comments on a trade deal were “nothing new”, “everything has changed now.”
He continued: “US right now needs a deal with UK MORE than the other way round… dropping the ball with closest ally would be a v bad market signal.”
Islam explained that despite running a trade surplus with the UK, America had treated them “rather harshly” through the 10% universal tariff and the higher rates on items such as cars.
The journalist pointed to how Labour government was “now deciding whether to realign with the EU” and “has options.”
He added: “If the 10% baseline tariff is non-negotiable (even though it’s now riddled with exemptions for those causing the actual deficit) what is there to negotiate?
“With markets still nervy, UK right now has significant leverage in any deal with US, after its inexplicable harsh application of a 10% tariff to an ally to which it sells more than it buys from…”
Writing for the BBC, Islam said America’s position had changed in the last couple of weeks as a result of the global stock market crash caused by Trump’s tariffs.
He said the US now “needs these deals, especially the easy pickings with its closest allies,” adding that the UK now “has more leverage than it did a month ago.”
Related: JD Vance says UK could get ‘great trade agreement’ with US thanks to Trump’s love of the Queen