WASHINGTON — Vice President Mike Pence acknowledged Friday that the United Kingdom's recent decision to grant Chinese telecommunications giant Huawei access to its 5G mobile networks could jeopardize trade talks between the United States and the U.K.

Asked whether the Huawei decision was a deal breaker, Pence told CNBC's Wilfred Frost: "We'll see."

"We are profoundly disappointed because look, when I went at the president's direction in September I met with Prime Minister Johnson and I told him the moment the U.K. was out of Brexit we were willing to begin to negotiate a free trade arrangement with the U.K.," Pence said.

"But we just don't believe that utilizing the assets and technologies of Huawei is consistent with the security or privacy interests of the U.K., of the United States and it remains a real issue between our two countries," he added.

Pence added: "We're anxious to build our economic ties, but we have made it clear to Prime Minister Johnson and to officials in the U.K., that as we expand opportunities to build out 5G across this country … we want to see our companies meet the needs in the United States and U.K. and among all our allies without the compromise of privacy and the compromise of security that necessarily comes with Huawei and control by the Chinese Communist Party."

Last month, the Trump administration expressed disappointment after the U.K. announced it would allow Huawei to have limited access to some British 5G mobile networks.

"The United States is disappointed by the U.K.'s decision," a senior Trump administration official wrote in a Jan. 28 emailed statement to CNBC. The official added that the Trump administration will work "with the U.K. on a way forward that results in the exclusion of untrusted vendor components from 5G networks."

Trump has said that he would seek a major trade deal with the United Kingdom after the country left the European Union.

"We're having very good trade talks between the U.K. and ourselves. We're going to do a very big trade deal, bigger than we've ever had with the U.K.," Trump said at the Group of Seven summit in August.

"At some point, they won't have the obstacle of, they won't have the anchor around their ankle, because that's what they had. So, we're going to have some very good trade talks and big numbers," he said, without adding anymore details on a potential deal.

The latest development comes as the Trump administration works to isolate Huawei from developing a larger foothold in U.S. partner countries. The administration has specifically worked to keep members of the "five eyes" intelligence-sharing group — the U.S., U.K., Canada, Australia and New Zealand — from working with Huawei.

In 2018, the Pentagon halted sales of Huawei and ZTE mobile phones and modems on military bases around the world due to potential security risks.

"We continue to urge all of our partners and allies to carefully assess the multifaceted impacts of allowing untrusted vendors access to important 5G network infrastructure," Pentagon spokesman U.S. Army Lt. Col. Dave Eastburn wrote in a statement to CNBC.

"It's been assessed that there is no safe option for untrusted vendors to control any part of a 5G network," Eastburn added.