The Government is engaged in “extensive” discussions with the US about what tariffs will mean for the UK, Chancellor Rachel Reeves has said.
President Donald Trump announced a 25% tariff on vehicles imported to the US will come into effect on April 2.
Ms Reeves said the UK and US economies are “closely intertwined”.
She told Times Radio: “The Prime Minister went to Washington just a couple of weeks ago and met the US president, and we are now having extensive talks with our counterparts in the US to protect trade between our countries, those conversations will continue.
“Obviously, the announcements of tariffs is something that the US plan to bring in next week, but we are in discussions about what that means for the UK.
“A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined.
“I believe – and we make this case to the United States – that free trade, fair trade, is good for both of our countries, but let’s see where we get to in the next few days.”
Around four out of five cars made in the UK are exported.
Figures from industry body the Society of Motor Manufacturers and Traders show the US is the second largest export market after the European Union for cars built in the UK.
Some 16.9% of UK car exports were to the US last year.
Jaguar Land Rover could be one of the UK vehicle manufacturers most affected by tariffs.
