The UK Government appeared to threaten a trade war with the United States, after Donald Trump whacked 10% tariffs on all goods entering from Britain. Responding to the President's Rose Garden press conference, the Labour trade secretary warned: "Nobody wants a trade war and our intention remains to secure a deal."
"But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.” The threat came after President Trump dealt a huge blow to Rachel Reeves and the world economy, though spared Britain from his harshest tariffs. The Tories have already highlighted that the European Union is being targetted twice as harshly as Britain, and have argued it's another clear benefit of Brexit.
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READ MORE: Donald Trump tariffs: Exact amount UK will be clobbered by
Trade secretary Jonathan Reynolds delivered a major warning this evening (Image: Getty)
Speaking from the White House, Mr Trump accused both friends and foes of his country of "raping" them economically.
In shocking language, he told adoring supporters: "For decades our country has been looted, pillaged, raped and plundered by nations near and far".
He championed his announcement of tariffs as "liberation day", claiming it would go down in history as the moment he "made America wealthy again".
Brandishing a large chart showing what countries will be hit with what tariffs, he finally confirmed that the United Kingdom will be charged 10% on all goods entering the United States.
Finally getting to Britain Mr Trump explained: “United Kingdom [charge us] 10%, and we’ll go 10% [in return].
He also confirmed that all cars being sold into America will be subject to a 25% tariff, another major blow for Britain which sells ￡7.6 billion-worth of motors to the US each year.
The 25% tariff could come as a major jobs blow for big British employers like Jaguar Landrover, which sold over 100,000 cars to the US last year and could mean layoffs.
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Trump unveiled his tariffs this evening (Image: Getty)
Trade Secretary Jonathan Reynolds added: "We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship."
“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take."
Prior to this evening, the UK Government had refused to echo the EU's threat of reciprocal tariffs on the United States if they were whacked with new costs.
However his warning tonight appears to shift the government's position towards a potential trade war.
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Tory Andrew Griffith slammed Labour, but said the tariffs are proof of Brexit benefits (Image: Getty)
His Tory opposite, Andrew Griffith, said: "This is disappointing news which will worry working families across the country."
"Labour failed to negotiate with President Trump’s team for too many months after the election, failed to keep our experienced top trade negotiator, and failed to get a deal to avoid the imposition of these tariffs by our closest trading partner.
"The Chancellor’s emergency budget of just a week ago with its inadequate headroom is now at risk, casting uncertainty about more taxes or spending cuts.
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"Sadly, it is British businesses and workers who will pay the price for Labour’s failure.
"The silver lining is that Brexit - which Labour ministers voted against no less than 48 times - means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.
"President Trump is an admirer of Britain and our negotiations in government showed he wants to do a deal. Labour must swallow their pride, put Britain’s first and get back round the negotiating table to agree a fair deal to protect jobs and consumers in both the UK and the US alike.”