A trade deal with the US to save Britain’s endangered carmakers could be confirmed as soon as this week – but farmers warned Sir Keir Starmer not to compromise on food safety or animal welfare parts of the agreement. A deal would cut the 25% tariff imposed by US president Donald Trump on vehicle imports, including prestige cars by firms such as Rolls-Royce, Bentley and Aston Martin, which are popular with wealthy American consumers.

A quota is expected to limit the number of vehicles exempt from the swingeing tariff, but the deal will be warmly welcomed by British-based carmakers, who sell products worth £8.3billion to the US each year. Tariffs on steel products from the UK, currently 25%, could also be cut. UK trade negotiators are continuing talks in Washington and British officials were reported saying that negotiations are taking place “at speed”. However, disagreements remain over pharmaceuticals after Mr Trump threatened global tariffs of 25%.

Earlier this week, the Government announced a £4.8billion trade agreement with India.

Scott Bessent, Donald Trump’s Treasury secretary, told a Congressional committee: “I would think that perhaps as early as this week, we will be announcing trade deals with some of our largest trading partners.

“I expect that we can see a substantial reduction of the tariffs that we are being charged, as well as non-tariff barriers, currency manipulation and subsidies, both labour and capital investment.”

The US is in talks with 17 major trading economies, Mr Bessent said. These are thought to include Canada, Mexico, Japan, Vietnam and India.

Britain is offering concessions to Washington on Britain’s digital services tax, cuts on tariffs charged on US cars and a reduction in tariffs on American agricultural products. However, the Government is refusing to compromise on food safety standards, to avoid claims that it is allowing chlorine-washed chicken onto British supermarket shelves.

National Farmers Union president Tom Bradshaw said: “In any trade deal with the US, ministers must uphold their commitments and ensure that food that would be illegal to produce here from a food safety, animal welfare or environmental perspective is not granted access to our market.”

British carmakers have warned there are “weeks rather than months” to prevent job cuts without a deal. The Society of Motor Manufacturers and Traders, which represents firms employing 813,000 people across the UK, said the impact of US tariffs was “severe, it’s significant and it’s immediate”.

Sir Keir insisted a US trade deal was in Britain’s interests, telling the House of Commons: “It is not sensible or pragmatic to choose between the US and the EU to abandon the work we’re doing on trade with the US and leave the tariffs exactly where they are.”

Liberal Democrat leader Sir Ed Davey hit out at Mr Trump’s threat to impose tariffs on films produced outside the US, telling the House of Commons: “Will the Prime Minister work with our allies, in Europe and in the Commonwealth, and make clear to President Trump that if he picks a fight with James Bond, Bridget Jones and Paddington Bear, he will lose?”