US vice-president JD Vance dropped the biggest hint yet a "great" trade deal could be made with Britain - because Donald Trump loved the late Queen. The White House has imposed sweeping tariffs on imports to America, plunging the world into crisis, sending global stock prices tumbling and sparking fears of a global recession.

Since then, Mr Trump has retreated from tariffs, reducing the rate paid on imports from most countries to 10% and exempting electronics such as smartphones and laptops from the levy—including the 145% charge on imports from China. In an interview with the website UnHerd, Mr Vance said he was optimistic that both sides could reach a mutually beneficial agreement.

He said: "We're certainly working very hard with Keir Starmer's government.

"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."

Mr Vance added: "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 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."

Any deal would help insulate the UK from the direct impact of global trade tensions.

Mr Vance's comment signals that the White House has accepted that the US and the UK can have a balanced trade position.

Each country exports the same amount of goods to one another, and it is now accepted the UK, unlike other European countries, is not "ripping off" or "screwing" the US.

His positive comments come after US Treasury Secretary Scott Bessent said, “Some very large countries with large trade deficits would come forward very quickly” as the White House banks on trade rivals blinking first.

He said: “We were having a discussion about which countries to prioritise and I think you are going to see some very large countries with large trade deficits come forward very quickly. If they come to the table with solid proposals, I think we can end up with some good deals.”

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.