The Ftse 100 has surged today after US Vice President JD Vance suggested there was a “good chance” of Britain and the US signing a “great” trade deal.Vance’s comments come amid ongoing turmoil caused by President Donald Trump’s tariff war, which has seen the White House impose fluctuating taxes on imports on other countries.The UK’s flagship stock index rose as much as 1.1 per cent following Vance’s comments.Notably, the mid-cap Ftse 250, which is more focused on the UK’s domestic market, also saw gains of up to 1.2 per cent after the Vice President signalled a favourable economic partnership. “The Ftse 100 made a strong start to proceedings on Tuesday after comments from US Vice President JD Vance that there’s a ‘good chance’ of a UK-US trade deal,” said AJ Bell investment director Russ Mould.Vance pointed to the ongoing diplomatic efforts between the two nations, stating “we’re certainly working very hard with Keir Starmer’s Government” to secure an agreement.The Vice President also highlighted Trump’s personal connection to Britain as a key factor in getting a trade deal across the table.”The President really loves the United Kingdom,” he told UnHerd. “He loved the Queen. He admires and loves the King. It is a very important relationship.”Vance emphasised that Trump’s interest goes beyond business ties. “There’s a real cultural affinity. And of course, fundamentally America is an Anglo country,” he said.The VP added: “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”.Britain was hit with a 10 per cent tariff under Trump’s “liberation day” tariffs, in addition to the President’s 25 per cent duties on steel and aluminium, and cars and car parts.However, markets were lifted after Trump indicated he could amend tariffs on the car industry. The President said he was considering a modification to the 25 per cent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. This follows Friday’s move to exempt smartphones, computers and some other electronics from his “reciprocal” tariffs.Carmaking stocks across the Ftse 350 rose as much as 2.9 per cent, with manufacturers and suppliers across Europe up as much as 3.2 per cent.LATEST DEVELOPMENTS:Rachel Reeves faces jobs pressure as wage growth slows and unemployment remains stagnantDonald Trump exempts iPhones and laptops from tariffs after tech stocks plunge in major U-turnRachel Reeves unveils £20bn support plan as Donald Trump trade war triggers recession warnings”Suggestions there might also be a softening of tariffs on the motoring sector also helped lift the mood with names which have sold off most heavily on US trade policy like Rolls-Royce bouncing back,” noted Mould.Housebuilders were also in demand as slowing UK wage growth raised hopes for a cut to interest rates.This would in turn boost the affordability of mortgages, according to market analysts.Not all sectors saw gains, however. Shares in British luxury brand Burberry fell after French counterpart Louis Vuitton Moet Hennessy reported lower than expected revenue.
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