Tariffs live: White House insists countries need US markets to survive as ‘phones ringing’ to make trade deals

The European Union will be ready to respond to tariffs if negotiations with the United States do not work, German Finance Minister Joerg Kukies said on Friday.

“The US side has to be aware that if negotiations do not work, then we will have another discussion around response mechanisms,” Kukies said in Warsaw ahead of a meeting of EU finance ministers.

The UK is “resolved” to do everything it can to secure the “best deal possible” with the US, Rachel Reeves has said, after a senior Trump adviser poured cold water on the idea of tariff concessions.

Asked if she was losing confidence in the prospect of a US trade deal and pivoting to other partners instead, the Chancellor insisted the UK remained in negotiations with the Americans.

Speaking at Downing Street, she told reporters: “We continue to engage with our counterparts in the United States, and of course we want to secure the best deal possible for British jobs and British industry. And we are absolutely … resolved to do everything we can.

“But, at the same time, we also want to improve trading relations with other countries around the world.”

Sir Keir Starmer has been warned against sacrificing too much in an attempt to secure a trade deal with Donald Trump, as hopes of avoiding tariffs appear to be fading.

Meanwhile, UK ministers appear to be increasingly downbeat about the prospect of a US-UK deal, with health minister Stephen Kinnock admitting that it might take some time. It comes despite officials previously insisting that talks were at an “advanced stage”.

Sir Keir Starmer has held calls with the first ministers of the devolved administrations and the regional mayors to “update” them on the Government’s approach towards global tariffs, Downing Street has said.

A Number 10 spokesperson said: “The Prime Minister led calls with the first ministers, deputy first minister and regional mayors today to update them on the UK’s Government’s calm, pragmatic and cool-headed approach to recent global tariffs.

“These discussions focused on how across the UK – whether in Belfast, Birkenhead, Blythe or Bute – partnership at all levels will be required to deliver for working people, in the national interest.”

India and the US have finalised terms of reference for talks over a bilateral trade agreement.

An Indian trade official said there was a possibility the countries could come to a “win-win” deal in the next 90 days.

“We are far ahead in trade talks with the U.S. compared to other countries … there are lots of possibilities in 90 days,” the official told Reuters.

India is one of America’s largest trading partners in Asia, but Donald Trump had hit the country with what he said was a “discounted” reciprocal tariff of 26 per cent.

Mr Trump had repeatedly accused India of “very very high tariffs” and called it the “tariff king” for its average levy on American goods of 52 per cent.

The White House has insisted that trade partners ‘need the United States of America’.

Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals.

“They’ve made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing.

She added: “We’ve heard from South Korea. We’ve heard from Japan. The president has spoken to Vietnam. We have Italy coming to the White House next week.

“There’s a reason for that, Sean, and it’s because they need the United States of America and our business model and our markets to survive, and the President is using that leverage to our advantage.”