US vice president JD Vance has said America and the UK are “working very hard” on a trade deal and he believes they will reach a “great agreement”.
Donald Trump imposed sweeping tariffs on imports to the United States several weeks ago, rocking the world economy, sending stock prices tumbling and sparking fears of a global recession.
Since then, Mr Trump has rowed back on those tariffs, reducing the rate paid on imports from most countries to 10% and, on Saturday, exempting electronics such as smartphones and laptops from the levy – including the 145% charge on imports from China.
The UK was already going to face a blanket 10% duty before Mr Trump’s so-called “Liberation Day” announcement of worldwide tariff increases.
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The UK government has been hopeful of a deal to exempt the UK from Mr Trump’s tariffs, and in an interview with the website UnHerd on Tuesday, Mr Vance said he was optimistic that both sides could come to a mutually beneficial agreement.
“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.
“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 gives 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.”
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.
Image: UK Prime Minister Sir Keir Starmer, left, with Donald Trump, centre, and JD Vance in the Oval Office in February. Pic: Reuters
Vance criticises Europe on defence
During the interview, where he spoke on the phone from the West Wing of the White House, Mr Vance also touched on the apparent shift in the US and Europe’s security relationship.
He said: “The reality is – it’s blunt to say it, but it’s also true – that Europe’s entire security infrastructure, for my entire life, has been subsidised by the United States of America.”
Mr Vance said that as recently as a quarter-century ago Europe had “many vibrant militaries, at least militaries that could defend their own homelands”, but nowadays he believes “most European nations don’t have militaries that can provide for their reasonable defence”.
The vice president added: “The British are an obvious exception, the French are an obvious exception, the Poles are an obvious exception. But in some ways, they’re the exceptions that prove the rule, that European leaders have radically underinvested in security, and that has to change.”
Mr Vance said his message to Europe was the same one as that shared by then-French president General Charles de Gaulle during the height of the Cold War.
The US vice president said General de Gaulle “loved the United States of America, but (he) recognised what I certainly recognise, that it’s not in Europe’s interest, and it’s not in America’s interest, for Europe to be a permanent security vassal of the United States”.
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Mr Vance also suggested he believes a strong Europe would better for America.
“I don’t think that Europe being more independent is bad for the United States – it’s good for the United States. Just going back through history, I think – frankly – the British and the French were certainly right in their disagreements with Eisenhower about the Suez Canal,” he said.
Mr Vance added: “I think a lot of European nations were right about our invasion of Iraq. And frankly, if the Europeans had been a little more independent, and a little more willing to stand up, then maybe we could have saved the entire world from the strategic disaster that was the American-led invasion of Iraq.”
Asked about Mr Trump’s tariff regime and its impact on the stock market, Mr Vance said: “Any implementation of a new system is fundamentally going to make financial markets jittery.
“The president has been very consistent that this is a long-term play… Now, of course, you have to be responsive to what the business community is telling you, what workers are telling you, what bond markets are telling you. These are all variables that we have to be responsive to…. (to) make the policy successful”.
The FBI says it is investigating a “targeted terror attack” in Colorado after a man reportedly threw petrol bombs at a pro-Israel event.
FBI boss Kash Patel said agents were working with local law enforcement on the scene in Boulder.
Witnesses told US media the attacker threw Molotov cocktails at people doing a walk to remember Israeli hostages in Gaza.
Image: Phone footage showed smoke rising over a park area
A male suspect is in custody.
Local police said there were “multiple victims” and a large part of the downtown area around Pearl Street was cordoned off.
Police chief Steve Redfearn said it happened around 1.26pm local time and initial reports were that “people were being set on fire”.
He said some victims were in hospital and injuries ranged from “very serious” to “more minor”.
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“When we arrived we encountered multiple victims that were injured, with injuries consistent with burns,” Mr Redfearn told the media.
He said a suspect had been pointed out and taken into custody without incident.
“This area is not safe yet and we’re dealing with a vehicle of interest,” he added.
Image: Law enforcement were seen putting on what appeared to be a bomb suit. Pic: AP
Mr Redfearn said it happened as a “group of pro-Israel people” were peacefully demonstrating, but that he couldn’t confirm a specific group had been targeted.
The police chief said it was too early to call it a “terror attack”. However, Colorado’s governor did use those words.
Jared Polis said on Facebook it was “unfathomable that the Jewish community is facing another terror attack here”.
A joint statement from Boulder’s Jewish community said “an incendiary device was thrown at walkers at the Run for Their Lives walk on Pearl Street as they were raising awareness for the hostages still held in Gaza”.
It added: “Our hearts go out to those who witnessed this horrible attack, and prayers for a speedy recovery to those who were injured.”
Colorado attorney general Phil Weiser said it “appears to be a hate crime” and that “violence is never the answer to settling differences”.
His statement said the group affected gathered weekly on Pearl Street to call for the release of the remaining hostages held by Hamas.
Boulder is a university city of about 105,000 people on the northwest edge of Denver, in the foothills of the Rocky Mountains.
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Tensions are simmering in the US over Israel’s war in Gaza.
There has been an increase in antisemitic hate crime, as well as moves by some supporters of Israel to brand pro-Palestinian protests as antisemitic.
President Trump’s administration has detained protesters without charge and pulled funding from elite universities that have permitted such demonstrations.
A 16-year-old transgender athlete who is the focus of a US sports row has won two golds and a silver at the California high school track and field championship.
AB Hernandez was born a boy but has transitioned and now competes against girls.
And the teenager’s inclusion in the girls category in the high jump, long jump and triple jump became a national conversation.
Critics, including parents, conservative activists and President Trump, had called for Hernandez to be barred from competing.
Image: AB Hernandez poses with her medals. Pic: AP
In the city of Clovis on Saturday, she took part under a new rule change brought in by the state’s interscholastic federation, under which an extra student was allowed to compete and win a medal in the events where Hernandez qualified.
And it meant there were two winners when she finished first.
Hernandez shared first place in the high jump with Jillene Wetteland and Lelani Laruelle.
All three cleared a height of 5ft 7in (1.7m), but Hernandez had no failed attempts, while the other two had each logged one failure.
Hernandez also had a first-place finish in the triple jump, sharing the top spot with Kira Gant Hatcher, who trailed her by more than half a metre.
Image: AB Hernandez shares the first-place spot on the podium with Kira Gant Hatcher during the triple jump medal ceremony. Pic: AP
Also, Hernandez came second in the long jump with Brooke White.
“Sharing the podium was nothing but an honour,” White said. “As a part of the queer community I want AB Hernandez to know we all have her back.”
Plane protest
During Hernandez’s qualifying events on Friday, a plane flew over the stadium trailing a banner, which read: “No boys in girls’ sports.” It was organised and paid for by two women’s advocacy groups.
A small protest also took place on the road outside. “Save girls’ sports,” one poster read. “XX does not equal XY,” read another.
Image: A plane, paid for by women’s advocacy groups, flew a banner over the stadium that read: ‘No boys in girls’ sports’
Transgender inclusion is a thorny issue but a vote winner for Donald Trump, who campaigned last year with a promise to “kick out men from women’s sport”.
And Mr Trump has threatened to withdraw federal funding from California over Hernandez’s participation in this weekend’s athletics event.
Image: Pic: AP
‘Pilot entry process’
The California Interscholastic Federation had earlier said it was launching a “pilot entry process” to allow more girls to participate in the championship.
It only applied to the three events in which Hernandez competed.
The rule change may be the first attempt nationally by a high school sports governing body to expand competition when trans athletes are participating.
If a transgender athlete wins a medal, their ranking would not displace a “biological female” student from also medalling, the federation confirmed, and it will be reflected in the records.
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Donald Trump said he plans to double tariffs on steel imports from next week, deepening his trade war which has hit global markets.
The US president told a rally of steel workers in West Mifflin, Pennsylvania, on Friday that tariffswould be raised from 25% to 50%, “which will even further secure the steel industry in the United States”.
Mr Trump later said on Truth Social that the new levy – also affecting aluminium imports – would be in effect from Wednesday and that American “industries are coming back like never before”.
“This will be yet another BIG jolt of great news for our wonderful steel and aluminum (sic) workers,” he added. “MAKE AMERICA GREAT AGAIN!”
He then said: “We don’t want America’s future to be built with shoddy steel from Shanghai – we want it built with the strength and the pride of Pittsburgh!”
Image: The new levy will come into effect on Wednesday, the US president says. Pic: Reuters
Sky News understands that British steel exports are exempt from this rise after a UK-US trade agreementwas signed earlier this month.
The agreement said at the time that the US “will promptly construct a quota at most favoured nation (MFN) rates” for British steel, aluminium and derivative products.
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Earlier, the US president claimed China had “totally violated” an agreement to mutually roll back tariffs and trade restrictions for critical minerals.
“So much for being Mr Nice Guy,” he said in a post on his social media platform.
The rates threaten to make the cost of products using steel and aluminium – such as cars or soft drink cans – more expensive for Americans.
He also previously threatened Canada with 50% levies on imports, while the provincial government of Ontario, in turn, threatened to charge 25% more for the electricity it supplies to the US.
Canada’smost populous province provides electricity to more than 1.5 million American homes and businesses in Minnesota, New York and Michigan.
At the time, Canadian Prime Minister Mark Carney called the proposed 50% tariffs an “attack” on Canadian workers, families and businesses.