The United Kingdom expects to be affected by American prices and does not exclude reprisals, said Downing Street.
The Prime Minister’s official spokesman said discussions on an economic agreement between the two countries had been “constructive” but should last beyond Wednesday when President Donald Trump said that new 25% rates – or import taxes – on cars and automotive parts will come into force.
Trump has imposed a series of prices targeting goods from other countries, the United Kingdom already reached by 25% of tax and aluminum export taxes in the United States.
During the weekend, he suggested that prices would hit all countries, not only those with the largest commercial imbalances with the United States.
The United Kingdom has been in negotiations with the United States to try to guarantee an exemption.
Sir Keir Starmer’s spokesman said: “Regarding the prices, the Prime Minister has clear that he will always act in the national interest and we are preparing for all possibilities before the announcement of President Trump, that we expect the United Kingdom to be affected by the sides of other countries.
“We have constructive discussions on an economic prosperity agreement in the United States-US, but we will only make an agreement that offers economic prosperity for the British people and we will only be in the national interest.”
Pressed if the government hoped that an agreement to avoid prices reached on Wednesday, the spokesman said that discussions between the United Kingdom and the United States “would probably continue beyond Wednesday”.
He said that the United Kingdom “would adopt a calm and pragmatic approach” in response to any price, arguing “a trade war with the United States is not in the interests of anyone”.
But he added: “We don’t settle anything in response.”
The Liberal Democrats have urged the government to retaliate with its own prices, as Canada and the European Union have already done so.
This comes after Sir Keir spoke to Trump by phone on Sunday, with Downing Street saying that the pair had “productive negotiations” on an economic agreement.
The government argued that the United Kingdom had a relatively equal commercial relationship with the United States, compared to its other partners.
The Independent Office for Budget Liability (OBR) warned that a reciprocal trade war would erase billions of people from economic growth and almost eliminate the Chancellor of the Margin Salle, Rachel Reeves, must remain in its self-imposed rules on expenses and borrowing.
This could cause new tax increases or expense reductions if it wanted to avoid breaking its tax rules.
OBS’s latest economic forecasts, published on Wednesday, said that GDP would be 0.6% lower than that of forecasts this year and 1% less next year in the most “serious” scenario, in which the United Kingdom and other nations retaliated on Trump’s tariffs.
In an alternative scenario where the United Kingdom does not retaliate, the OBR has planned a lower reduction in growth, with a 0.4% lower than expected GDP this year and 0.6% less next year.
We do not know how the United Kingdom would retaliate if the prices come into force. There are a range of options available, tasks in the sectors where British products are particularly important for the United States, to focus on specific products like Harley Davidson Motorcycles.
British car exports are about 7.6 billion pounds sterling per year, and the United States is the second largest market for British cars after the European Union, according to the automotive industry, the Society of Motor Manufacturers and Traders (SMMT).
Trump’s plan should strike British luxury car manufacturers such as Rolls-Royce and Aston Martin.
The American president maintains that his measures will help American manufacturers and protect jobs, despite the warnings that prices may increase for consumers.
During a meeting between the Prime Minister and the President at the White House last month, Trump alluded to “a real trade agreement”, which could see the United Kingdom avoid the type of tariffs with which he threatened other countries.
