Sir Keir Starmer is resisting retaliatory tariffs despite expectations that US President Donald Trump will hit the UK along with other countries when he announces “immediate” levies.

Mr Trump is expected to confirm across-the-board tariffs on imported goods during a Rose Garden ceremony that he calls “Liberation Day” and the “rebirth of our country.” 

The EU had already announced retaliatory tariffs on the US, to unfold in two phases, though it said it was delaying the first round until 13 April.

Despite not being in a trade deficit, the UK will not escape Mr Trump’s revenge on what he sees as punitive levies imposed on the US.

The Prime Minister is urging “cool and calm” and is pinning his hopes on a trade deal that will mitigate the impact of tariffs. The Prime Minister said the negotiations are at an “advanced stage”.

President Trump’s spokeswoman Karoline Leavitt told reporters at the White House that Mr Trump is “focused on fixing the wrongs of the past and ensuring that American workers have a fair shake”.

Number Ten is being reminded by the Office for Budget Responsibility added to the uncertainty” around the UK economy which could force Rachel Reeves to consider further tax rises or spending cuts in the autumn.

Already Goldman Sachs has downgraded its forecasts for UK growth this year from 0.9% to 0.8%, lower than the 1% announced by the Chancellor last week.

Opponents say Ms Reeves had been left without any wriggle room. Andrew Griffith, the shadow business and trade secretary, said she had not accounted for the prospect of tariffs being imposed on the UK when she delivered her spring statement.

London equities rebounded on Tuesday, with the FTSE 100 index closing 0.6% higher at 8634.8, but investors and businesses were braced for further turbulence.

On Wall Street the Dow Jones Industrial Average was down 0.03%, while the S&P 500 advanced 0.38% and the Nasdaq Composite saw out the session 0.87% firmer.