Government draws up list of potential products - motorcycles, guitars and jeans - to use in tariff retaliation

He said his department had drawn up an “indicative list of potential products that the Government considers most appropriate for inclusion” in any tariffs against US exports.

The list includes key US products such as Bourbon whiskey, motorcycles, guitars and jeans but also includes scores of other items ranging from whale meat to chopsticks.

Officials said the list covered 27 per cent of the value of total imports from the US and excluded the main American products which British companies depend upon.

The Prime Minister has acknowledged there will be an economic hit for the UK from the 10 per cent import tariff that has been put on British goods entering the US.

Ministers have said they will keep working towards a trade deal with the US, but Sir Keir Starmer stressed that “nothing is off the table” in terms of a response.

Addressing the Commons, Mr Reynolds said: “It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths.

“However, we do reserve the right to take any action we deem necessary if a deal is not secured.

“To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action.”

Firms will have until 1 May to put forward opinions on any US products that could be hit by retaliatory tariffs.

“This is a formal step, necessary for us to keep all options on the table,” he added.

The US President unveiled tariffs on countries around the world on Wednesday night, with the UK’s 10 per cent rate putting it in the lowest “baseline” category, but the Prime Minister acknowledged British exporters would be hurt by the levy.

Addressing senior executives from some of the UK’s biggest companies in Downing Street this morning, Sir Keir said: “Clearly, there will be an economic impact from the decisions the US has taken both here and globally.”

He said that “nobody wins in a trade war” and stressed the UK had a “fair and balanced trade relationship with the US”.

Negotiations on an “economic prosperity deal” which it is hoped could mitigate the impact of the tariffs will continue, Sir Keir said as he promised to “fight for the best deal for Britain”.

But he said he would “only strike a deal if it is in the national interest and if it is the right thing to do for the security of working people”.

It comes as farming groups urged the Prime Minister to keep lower food standards out of any economic deal with the US.

Country Land and Business Association vice president Joe Evans said: “Donald Trump might demand we eat chlorinated chicken and beef reared using growth hormones – but British consumers say no.

“British farmers, who must comply with some of the highest animal welfare and environmental regulations in the world, should not be forced to compete with American farmers who produce cheap food to much lower standards.

“British exports will be affected by these tariffs, which could harm producers of world class wine, spirits, cheeses and other goods. The best thing the public can do to support these farmers and producers is to buy British.”

Bridlington and the Wolds MP Charlie Dewhirst, a former pig farmer, told The Yorkshire Post: “I wholeheartedly support the opportunity to deepen our economic relationship with the USA, but it is vital for the future of our food security that any free trade deal is also a fair trade deal.

“Our farmers cannot and should not be expected to compete with imports produced to lower standards that would be illegal in the UK.

“It simply wouldn’t be a level playing field and will add even more pain to the struggling rural economy.”