The Prime Minister said the UK Government would respond with “cool and calm heads”.

Keir Starmer has told business chiefs that “clearly, there will be an economic impact” from Donald Trump’s tariffs.

But the Prime Minister said the UK Government would respond with “cool and calm heads”.

Trump has slapped a 10 per cent tariff on US imports of UK goods.

It came as he confirmed sweeping import levies on countries across the world in what he said was America’s “declaration of economic independence”.

Starmer told business chiefs in Downing Street that the US President “acted for his country, and that is his mandate.

“Today, I will act in Britain’s interests with mine.”

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He said the UK was “prepared” and that “one of the great strengths of this nation is our ability to keep a cool head”.

Downing Street had suggested they had been vindicated in their approach to negotiating with the US in the hope of securing an exemption. The 10 per cent tax facing UK goods is half that facing the EU.

In a speech from the White House rose garden, Trump confirmed that from 5am Thursday in the UK, a 25 per cent tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.

And he indicated tariffs of 10 per cent would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world as part of his “reciprocal” measures from 5am on Saturday.

Starmer addressed business chiefs including AstraZeneca’s Pascal Soriot, BAE’s Charles Woodburn and Jaguar Land Rover’s Richard Molyneux.

He said that as the Government moved “to the next stage of our plan”, the “decisions we take in coming days and weeks will be guided only by our national interest, in the interests of our economy, in the interests of businesses around this table”.

“Clearly, there will be an economic impact from the decisions the US has taken, both here and globally.

“But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head.”

He said he would “fight” to secure a deal with the US in the hope of mitigating the impact of the tariffs and that “nobody wins in a trade war”.

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