British officials are scrambling to strike a trade deal with the US amid the introduction of tariffs. Talks on an agreement with Donald Trump’s administration continue “at every level” before the expected imposition of further levies next week, Downing Street has said.

Whitehall figures are expected to hold several phone calls in the coming days to try to carve-out a deal for the UK. A Number 10 spokesman said: “We continue to have productive discussions on securing a wider economic deal. The UK will only do a deal in the national interest, which reflects this Government’s mandate to deliver economic stability for the British people.

“And as we have said before, discussions continue at every level.”

Asked about a timetable for a possible deal, he said: “I’m not going to get into timetables. Discussions continue and as you’d expect those are happening at every level.”

Keir Starmer on Friday declared that the UK “reserves the right to respond” to Mr Trump’s global tariff trade war.

The US President will slap a 25% import tax on cars, on top of a series of reciprocal tariffs set to come into effect on April 2.

Andrew Griffith said: “This shows the cost of Labour squandering time by trying to return us to the EU rather than picking up the US trade deal we started.

“After the emergency budget showed growth, inflation and employment all going in the wrong direction, Labour need a proper plan to get the UK economy back on track.

“A US trade deal could be the answer. But with the threat of tariffs looming over British jobs, Labour must do more to secure it.”

Sir Keir’s reluctance to hit back with levies is driven by fears of the economic harm a trade war would cause.

The US is the second largest export market after the European Union for cars built in the UK.

Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.

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In its assessment of the UK economy, the budget watchdog warned a full-blown tariff war with the US could wipe 1% off gross domestic product next year and derail Chancellor Rachel Reeves’s hopes of balancing the books, forcing her to implement more cuts or tax hikes.

That “worst-case scenario” would come about if Mr Trump imposed 20% tariffs on British goods and the UK reciprocated in kind.

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Jaguar Land Rover could be one of the UK vehicle manufacturers most affected by tariffs.

Its latest annual report shows 22% of its sales were to North America in the year to the end of March 2024.

Mike Hawes, chief executive of industry body the Society of Motor Manufacturers and Traders, said the announcement of tariffs was “not surprising but, nevertheless, disappointing” and he urged both governments to strike a deal that avoids further damage.