Getty ImagesThe UK government is drawing up a list of US products it could hit with retaliatory tariffs after President Donald Trump announced a wave of new import taxes.
This is a toughening of the government's stance as ministers seek to finalise a trade deal with the US.
Business Secretary Jonathan Reynolds says he is consulting UK firms about the likely impact of the 10% tariffs being imposed on all UK exports to the US.
If UK negotiators can not agree a deal to reduce the 10% tariff by 1 May, the business secretary told MPs the government will impose retaliatory tariffs on US imports.
The government has published a sample list of goods that could face future UK tariffs.
Being on the 417 page list does not necessarily mean a product will face tariffs, the government said.
The list is extremely broad, appearing to contain almost all potential import products from pure bred horses and children's clothes to crude oil, firearms and bourbon.
Reynolds says talks are ongoing with the US government to secure an economic deal aimed at avoiding or reducing tariffs.
But he warned that the UK "reserves the right to take any action we deem necessary if a deal is not secured".
In the event of reaching a deal with the US, the consultation with businesses would be paused, he added.
Speaking in the House of Commons, he said the fact the US had put lower tariffs on the UK compared to other countries "vindicated the pragmatic approach the government has taken". However, he said he was "disappointed" by the increase.
Conservative shadow business secretary Andrew Griffith questioned Reynolds' claim that the government's approach had been "vindicated".
"The government got no special favours," he said noting that the UK was facing the same tariffs as more than 125 other countries and territories including the Congo and the Christmas Islands.
He said the EU was being hit by 20% tariffs and the UK's lower rate of 10% was actually a vindication of those who "were pilloried and abused" for backing Brexit.
"They [Labour] should regret the 48 times they voted to stay in Europe and thank us for getting Brexit done."
Liberal Democrat deputy leader Daisy Cooper said Trump was telling the UK he would only lower tariffs "if you lower your standards".
"If the government gives in to Trump's threats it will only encourage him to use the same bullying tactics again and again."
She reiterated her party's call for an "economic coalition of the willing" against the tariffs.
In addition to the 10% tariffs, a 25% tariff has been put on UK car exports, as well as steel and aluminium products.
The UK exported almost £60bn worth of goods to the US last year, mainly machinery, cars and pharmaceuticals.
The government's official forecaster estimates a worst-case scenario trade war could reduce UK economic growth by 1% and wipe out the £9.9bn of economic headroom Chancellor Rachel Reeves gave herself at last week's Spring Statement.
It could mean that in order to meet her own fiscal rules, she would have to raise taxes or make cuts to government spending.
Behind the scenes the government says it has been laying the groundwork for a trade deal with the US.
Insiders on the UK side say a deal is practically done. But no one knows if, or when, Trump will sign off on it.
The deal would be broader than just lower tariffs the BBC understands, focusing on technology, but also covering elements of trade in goods and services as well as agriculture - a controversial area in previous unsuccessful US-UK trade talks.
Chancellor Rachel Reeves has suggested the UK could change its taxes on big tech firms as part of a deal to overturn US tariffs.
The digital services tax, introduced in 2020, imposes a 2% levy on tech firms, including big US firms such as Amazon, bringing in about £800m in tax per year.
Both the government and business groups have largely backed a strategy of not provoking the Trump White House.
But a big question remains whether President Trump's headline 10% universal tariff is even up for negotiation. Speaking to MPs Reynolds suggested it is, but White House officials have told the BBC the tariff is tied to a broader emergency measure that could take time to unwind.
For the first time the government has announced a loose deadline for the negotiations - the business consultation on a response must wrap up on 1 May.
If no deal is signed by then pressure will mount on Prime Minister Sir Keir Starmer to strike back with retaliatory tariffs.
