Varun Chandra: UK’s New Trade Envoy to the US

 Varun Chandra Appointed as UK's Special Envoy to the US on Trade and Investment: Strengthening UK-US Bilateral Trade and FDI

Key Takeaways

• Varun Chandra, an Indian-origin adviser with extensive finance experience, has been appointed by UK PM Keir Starmer as Special Envoy to the US on Trade and Investment to enhance economic ties.
• UK-US bilateral trade exceeded $330 billion in 2025, making the US the UK's largest trading partner, with scope for growth through better negotiations and investments.
• The position focuses on boosting FDI, engaging U.S. executives, and supporting trade talks, underpinned by IMF projections of 1.3% UK growth in 2026.
• Recent US investments in the UK, like Microsoft's $30 billion in AI, highlight the partnership's potential, creating jobs and innovation.
• This appointment comes amid global economic challenges, aiming to navigate tariffs and boost mutual benefits in key sectors like tech and defence.

Introduction

Picture this: two nations separated by an ocean but connected by centuries of history, culture, and now, more than ever, economics. The United Kingdom and the United States have always shared a special relationship, but in today's fast-changing world, that bond is being put to the test by things like trade tariffs, supply chain issues, and the push for green technologies. That's where the recent appointment of Varun Chandra as the UK's Special Envoy to the United States on Trade and Investment comes in. Announced by Prime Minister Keir Starmer's office in January 2026, this move is like sending a top-notch bridge-builder to strengthen the economic links between London and Washington.

Why does this matter to you? Whether you're a business owner looking to expand overseas, an investor eyeing new opportunities, or just someone interested in how global events affect everyday life, this appointment could shape the future of UK-US relations. Chandra, with his background in high-level advisory roles, is tasked with pushing forward trade deals, attracting investments, and making sure British businesses get a fair shot in the massive US market. Let's break it down.

First, a bit about the bigger picture. The US is the UK's biggest single-country trading partner. In the 12 months up to summer 2025, bilateral trade between the two hit over $330 billion – that's a huge number, covering everything from cars and pharmaceuticals to financial services and tech. But it's not just about selling goods; it's about investments too. During President Trump's state visit to the UK in September 2025, US companies pledged a record $150 billion in investments, creating thousands of jobs across the country. Think about that – money flowing into building factories, developing AI, and boosting innovation. Chandra played a key role in those deals, facilitating over $10 billion worth, showing he's no stranger to big-time negotiations.

Now, let's talk about Chandra himself. Born in November 1984 in South Shields, northeast England, to parents who immigrated from Bihar, India, he's a true example of the multicultural fabric that makes the UK strong. He studied at Magdalen College, Oxford, and built a career in finance and advisory. Before his 2024 appointment as Special Adviser on Business and Liaison to the business community within the Prime Minister’s team, he was Managing Partner at Hakluyt & Co, a strategic advisory firm. from 2019 to 2024. Earlier, he worked at Lazard, where he handled major deals, including those with an India focus, tying into his heritage and giving him a unique perspective on global trade. His connections run deep – he's on speaking terms with US heavyweights like Commerce Secretary Howard Lutnick, who called him a 'trusted friend'.

This appointment isn't happening in a vacuum. The world economy is facing headwinds. MF 2026 Forecast: Global growth reaches 3.3%. The UK (1.3%) takes the bronze medal in the G7, trailing only the US and Canada in the latest economic rankings. The World Bank echoes this, noting steady UK growth amid AI investments and trade partnerships. But challenges like potential US tariffs under the new administration and geopolitical tensions – think the Greenland issue or NATO debates – make a dedicated envoy crucial.

In his new role, Chandra will work closely with the UK's Ambassador to the US, Christian Turner, and departments like the Foreign, Commonwealth and Development Office (FCDO) and the Department for Business and Trade (DBT). He'll strengthen ties with US business leaders, leverage the Office for Investment to attract big bucks, and advise on key talks like the Economic Partnership Dialogue (EPD) and Trade Partnership Dialogue (TPD). This could mean more jobs, better tech sharing, and stronger supply chains.

But what does this mean for India-US relations, you ask? While the focus is UK-US, Chandra's Indian origins and past work at Lazard with India ties could open doors for trilateral cooperation. India-US trade is booming too, with bilateral figures hitting $200 billion in recent years, and FDI flowing both ways. Chandra's expertise might help align UK strategies with broader Indo-Pacific dynamics, especially in areas like clean energy and digital trade.

As we dive deeper into this topic, we'll explore Chandra's background in more detail, the current state of UK-US trade, potential impacts on FDI, a mini case study of a successful investment, and practical tips for businesses looking to capitalise. Stick around – this is about how one appointment could spark economic growth for years to come.

Who is Varun Chandra?

Varun Chandra isn't just another name in politics; he's a powerhouse in business advisory with a story that inspires. Born to Indian immigrant parents in South Shields, he grew up in a working-class area, attending local schools before heading to Oxford University. His journey from there to 10 Downing Street shows that hard work pays off.

Early Career and Rise in Finance

Chandra started in finance at Lazard, a top investment bank, where he became Managing Director, focusing on deals in emerging markets, including India. This experience gave him insights into global investment flows, something that's key in his current role. He then moved to Hakluyt & Co, becoming managing partner, advising Fortune 500 companies on strategy. His network includes big names like JPMorgan's Jamie Dimon.

Entry into Politics

In 2024, Chandra joined Starmer's team as a business adviser. By 2025, he was instrumental in securing deals during Trump's UK visit. Now, as Special Envoy, he's expanding that influence.

The Role of Special Envoy on Trade and Investment

So, what does a Special Envoy do? It's not just shaking hands at dinners; it's strategic work to boost economies.

Key Responsibilities

• Leading government efforts to advance UK interests in the US.
• Engaging with US leaders to drive trade and investment.
• Advising on negotiations like EPD and TPD.
• Supporting British businesses in the US market.

This role combines diplomacy with business acumen, making Chandra perfect for it.

Why Now?

With Trump's administration focusing on 'America First', the UK needs a strong voice to avoid tariffs and promote fair trade. Chandra's appointment signals proactive steps.

Current UK-US Bilateral Trade Landscape

UK-US trade is massive, but there's room to grow.

Trade Statistics

In 2025, total trade was $331.2 billion, with goods and services balanced. Exports from the UK to the US include machinery and pharmaceuticals; imports are tech and aircraft.

Category	Value ($bn)	Growth % (2024-2025)
Total Trade	331.2	+5%
Goods Exports	70	+3%
Services Imports	100	+7%

Challenges and Opportunities

Challenges: Tariffs, Brexit aftermath. Opportunities: AI, green tech.

Impact on Foreign Direct Investment (FDI)

FDI is the lifeblood of economies.

Trends in UK-US FDI

U.K. FDI in the U.S. totaled $513.2 billion by the end of 2023, with U.S. investment in the U.K. rising 1.4% in 2025.Future Outlook

With Chandra's push, expect more inflows, per World Bank trends.

Mini Case Study: Microsoft's Investment in UK AI

Let's look at a real example: Microsoft's $30 billion commitment to UK AI in 2025.

Background

Microsoft saw the UK's talent pool and invested in data centres, creating 3,000 jobs.

Impact

Boosted GDP, innovation. Lessons: Government incentives work.

Relation to Chandra's Role

Such deals could multiply under his envoy's work.

Insights from Global Institutions

According to the IMF, increased investment should help lift the U.K. economic growth to 1.3% in 2026. The World Bank highlights a stable economy. Federal Reserve notes US strength aiding partners.

Practical Tips for Businesses in UK-US Trade

Want to get involved?

• Research US markets via DBT resources.
• Network through consulates.
• Use FDI incentives.

Bullet points:

• Start with market analysis.
• Seek legal advice on tariffs.
• Partner with locals.

Conclusion

Varun Chandra's appointment is a smart move to bolster UK-US ties, trade, and investment. With strong stats and positive forecasts, the future looks bright. For more, check our internal links: UK Trade News, Investment Tips, and Global Relations. External: GOV.UK, IMF.

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FAQs

Who is Varun Chandra?

Indian-origin adviser, born 1984, Oxford grad, ex-Hakluyt MD.

What is his new role?

Special Envoy on Trade and Investment to the US.

How will this affect UK-US trade?

Boost negotiations, FDI.

What are the current trade figures?

Over $330bn in 2025.

Why was he chosen?

His track record in deals and connections.

Impact on India-US relations?

Potential trilateral links via his background.

Trending: How does this relate to Trump's policies?

Navigates tariffs, strengthens ties.

What companies might benefit?

Tech like Microsoft, defence.

(Expanded based on trends from searches.)

Key Citations:

• GOV.UK Announcement
• Reuters
• Bloomberg
• IMF Reports
• World Bank
• ONS Trade Stats