Anglo-American trade war looms as tariffs set to start

Britain will almost certainly be hit by Donald Trump’s trade tariffs, Downing Street has said, as hopes of concluding a deal before tomorrow's deadline dwindle.

- DAVID MADDOX ARCHIE MITCHELL

Sir Keir Starmer had been hoping to secure an exemption for British businesses but despite "intense negotiations" with Washington DC No 10 has confirmed no agreement will be in place before 2 April, when the US president has vowed to impose levies on a wide range of goods.

It comes as a major blow to Sir Keir after careful diplomatic efforts to woo Mr Trump, including an invitation to a second state visit. And the admission came despite a warm telephone conversation between the president and prime minister on Sunday night.

Meanwhile, two major business groups have warned that more than 60 per cent of their members will be hit directly by the US tariffs with others facing indirect effects from the impact on supply chains.

International markets tumbled around the world yesterday as President Trump confirmed that tariffs will hit "all countries" tomorrow, in what he had dubbed "liberation day".

Mr Trump has confirmed tariffs on steel, automobiles and aluminium products. He imposed a 25 per cent import tax on all cars imported to the US, a measure which will be a blow to the UK's automotive industry. Some 16.9 per cent of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6bn.

But the announcement tomorrow is expected to include more measures and could include a general 20 per cent tax on UK products in response to the rate of VAT, which Mr Trump deems to be discriminatory against the US.

The prime minister's spokesperson said: "When it comes to tariffs the prime minister has been clear he will always act in the national interest and we've been actively preparing for all eventualities ahead of the expected announcements from President Trump this week, which we would expect the UK to be impacted by alongside other countries.