UK eyes retaliatory tariffs on us goods as Trump slaps 10% duty on all British imports to America

The British government is drawing up a list of iconic American exports — whiskey, motorbikes and blue jeans among them — as potential targets for retaliatory tariffs following Donald Trump’s decision to slap a 10% levy on all UK imports into the United States.

Business Secretary Jonathan Reynolds told MPs that Britain would not rush into action, but confirmed a formal consultation with industry has begun. The four-week exercise invites businesses to weigh in on how retaliatory tariffs could be designed, as the government prepares to “keep every option open.”

“This is about ensuring we act deliberately and strategically, not emotionally,” Reynolds told the Commons. “We are launching a call for evidence, seeking views on the implications for British businesses of possible tariff action against the US.”

The announcement comes just 24 hours after Trump stunned allies by levying sweeping import duties on countries worldwide. British exporters face a 10% tariff, a figure that spares the UK from the full 25% rate applied to car imports but still threatens major industries including steel, whisky and automotive manufacturing.

The Department for Business released a list of potential American goods that could face UK tariffs if the standoff escalates. Stretching over 400 pages, the document includes bourbon, motorcycles, denim and other high-profile US exports.

While the government insists it is not spoiling for a trade war, ministers admit the UK cannot appear passive. “Our objective is to see these tariffs reversed,” Reynolds told ITV News. “But we must be clear that we will act to defend British industry if needed.”

Sir Keir Starmer echoed that sentiment in a calm but firm address to business leaders at No. 10. “We won’t be bounced into a knee-jerk reaction,” he said. “Donald Trump acted in what he believes are America’s interests — I will act in Britain’s.”

The Prime Minister acknowledged there would be “economic consequences,” but insisted that cool heads would prevail. “Britain is prepared,” he said. “One of our national strengths is not losing our composure under pressure.”

Critics, however, are less impressed with the measured tone. During a local election campaign stop, Starmer was asked if the UK was being “played” by Trump. He rejected the claim but offered little detail on any direct negotiations with the US.

Meanwhile, Trump confirmed the new tariffs from the White House Rose Garden, setting a 25% levy on all foreign vehicles and a baseline 10% on other imports starting this Saturday. His move rattled global markets. The FTSE 100 dropped sharply Thursday morning, shedding over 120 points amid fears of a wider economic fallout.

The automobile sector could be among the hardest hit, with industry analysts warning that up to 25,000 British jobs could be at risk.

Conservative leader Kemi Badenoch warned that Trump’s actions would hurt consumers globally. “These tariffs won’t make America richer — they’ll make all of us poorer,” she posted on X. She also argued that Brexit had placed Britain in a stronger position to act independently, adding a swipe at Labour: “This only works if handled by people who know what they’re doing.”

Liberal Democrat leader Ed Davey took a different tack, calling for a united front. “Trump is fuelling a destructive trade war,” he said. “Britain should rally our European and Commonwealth allies, impose retaliatory tariffs where necessary, and sign trade deals among ourselves.”

Though Downing Street insists its diplomatic efforts spared the UK from the full brunt of the US tariffs, many believe the 10% figure was driven by economic calculations, not concessions.

The next month will be pivotal. Unless a trade agreement is reached before 1 May, the consultation ends — and retaliation may begin.