Starmer and Trump have 'productive' talks on trade

Sir Keir Starmer and Donald Trump have discussed productive negotiations” towards a UK-US economic prosperity deal in a phone call, Downing Street said, as fears grow the UK may be landed with damaging US tariffs.

- ALEX CROFT

The pair agreed that negotiations will “continue at pace” in the call last night, which came after home secretary Yvette Cooper warned that “no option is off the table” in terms of a British response to any US tariffs.

Downing Street is trying to negotiate an exemption from tariffs on all imports into the US, in talks which Ms Cooper described as “intense”.

Mr Trump last week announced a 25 per cent import tax on all cars arriving in the US, a measure which will hit British luxury carmakers including Rolls-Royce and Aston Martin. A reciprocal set of tariffs is already set to come into effect on Wednesday, which may involve a general 20 per cent tax on UK products in response to the rate of VAT.

Sir Keir has left the door open to retaliatory tariffs, promising to “act in the national interest” and “leaving everything on the table”.