Donald Trump has threatened to slap 25% tariffs on all steel and aluminum imports despite UK ministers predicting Britain would avoid a trade clash with the US President.

Senior Treasury minister Darren Jones had predicted that Mr Trump would not impose heavy tariffs on the UK after Labour insisted it can do business with the incoming US administration.

When asked if the UK had a plan to deal with potential trade tariffs from the incoming Trump government, he said: “I don’t think we’re going to be in that scenario.”

But in a late-night announcement, Mr Trump said steel could now also face tariffs.

UK Ministers and officials will be hammering the phones on Monday to get more information out of the White House about what comes next and whether the UK can get an exemption.

This will include a flurry of activity from the new US Ambassador Peter Mandelson as he confronts his first major diplomatic challenge in the role.

A UK official told Playbook on Sunday night that British diplomats were immediately “engaging the US system on steel and aluminum tariffs”.

Speaking to reporters on Air Force One, Mr Trump said: “We’ll also be announcing steel tariffs on Monday. Everybody, steel. Any steel coming into the United States will have 25% tariffs — aluminum too.”

About one-tenth of the UK’s total steel exports were sent to America in 2024.

But the industry is already in long-term decline in the UK and this could be the start of more tariffs on different products entering the US.

It is “in the best interests” of both the UK and US that the two countries carry on with their “balanced trade”, a minister has said in response to Mr Trump’s threat to impose tariffs on steel and aluminium imports.

Dame Angela Eagle told Sky News: “We have a very balanced trading relationship with the US, I think £300 billion worth of trade between our countries, and I think it’s in the best interests of both of us, as long-standing allies and neighbours, that we carry on with that balanced trade.

“We will have to wait and see whether the president gets more specific about what he meant by that comment on the way to the Super Bowl.”

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Westminster will be watching to see whether Sir Keir follows in China’s footsteps by retaliatiating.

The communist nation’s tit-for-tat import taxes on some American goods came into effect on Monday.

Beijing announced the plan on 4 February, minutes after new US levies of 10% on all Chinese products came into effect.

China’s latest tariffs on US goods include a 15% border tax on imports of US coal and liquefied natural gas products.

There is also a 10% tariff on American crude oil, agricultural machinery and large-engine cars.