Keir Starmer has been urged to form “a united front” with the European Union and Canada against Donald Trump as he prepares to impose tariffs on all goods imported into America.

The US president will confirm the policy at a press conference on Wednesday evening, with the controversial surcharges set to be imposed the following day.

Government officials failed to negotiate a special carve-out for the UK in time to avoid the tariffs.

It means British-made cars, steel and other products will all instantly become more expensive in the US, dealing a huge blow to the UK economy.

The Office for Budget Responsibility last week warned the tariffs will damage economic growth and wipe out the £9.9 billion in spare cash chancellor Rachel Reeves planned to have come 2029.

While Canada and the EU have both vowed to retaliate with tariffs of their own on American exports, the UK government has so far refused to do so.

At the weekly cabinet meeting on Tuesday, Starmer said “the UK’s approach is to progress ongoing talks with the US on an economic deal, which are at an advanced stage, while keeping all options on the table”

“He said a calm and pragmatic approach best served UK national interests, not a knee-jerk reaction,” Downing Street said.

Reeves also told cabinet that a global trade war “will have an impact on the UK as an open trading economy”.

Calum Miller, the Liberal Democrat foreign affairs spokesperson, said: “Despite weeks of refusing to criticise Donald Trump’s damaging behaviour, it’s now increasingly apparent that the government will not secure a carve out for the UK ahead of Trump’s global tariff war.

“Trump has shown himself to be an unreliable partner on the economy. No one, not even the US’s oldest allies, are safe from the economic harm reaped by this White House.

“We need to end this trade war as quickly as possible. That means working with our Canadian and European allies in a united front against Trump, including retaliatory tariffs where necessary – as well as negotiating a bespoke new customs union agreement with the EU to better protect British businesses.”