Labour ministers have drawn up a "hit list" of US goods amid discussion of potential retaliatory tariffs.
The Government still hopes for an "economic deal" with the US to secure some exemption from the tariffs, with Sir Keir Starmer promising businesses that he would "fight for the best deal for Britain."
However, an "indicative list" published by the Government over 400 pages showed products that could be targeted, including bourbon whiskey, motorcycles, guitars and jeans.
An immediate response is unlikely as Business Secretary Jonathan Reynolds told MPs he would hold a four-week consultation on retaliatory action.
Keir Starmer is looking at all options in response to Donald Trump's tariffs
REUTERS
Meanwhile, Foreign Secretary David Lammy told reporters in Brussels this morning: "We have been absolutely clear that all options are on the table as we ensure the national interests of the British people."
Stock markets plummeted around the world as the FTSE 100 fell to a three-month low after the news that British exports to the US would face a blanket 10 per cent tariff.
In the US, the Dow Jones index suffered its worst day since 2020, falling almost four per cent as analysts at Barclays said there was a "high risk that the US economy enters a recession this year".
The Nikkei index in Tokyo lost 2.6 per cent early trading on Friday.
A screen displays the Dow Jones Industrial Average after the closing bell on the floor at the New York Stock Exchange
Reuters
Despite ministers having made clear its disappointment in the tariffs, the US President told journalists on board Air Force One late on Thursday that Starmer was "very happy" with the result.
Asked whether it was time for the UK to stand up to Trump, Lammy told reporters following a meeting with Nato counterparts in Brussels: “The United Kingdom, like France, is a great maritime nation.
"We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century.
“As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal."
Foreign Secretary David Lammy and German Foreign Minister Annalena Baerbock
Reuters
London’s Ftse100 Index of companies dropped by 0.68 per cent to 8,416.71 in early trading.
Banking stocks were among the heavier fallers, with Asia-focused firm Standard Chartered dropping by around four per cent.
Mining and commodity stocks were also among the fallers, after specific tariffs on metal production, such as aluminium.
Elsewhere in Europe, the French Cac 40 index was 0.68 per cent lower and the German Dax was 0.71 per cent lower.