The UK is "negotiating intensively" to secure a deal with the US over tariffs as the Government considers retaliatory action, a Treasury Minister has said.
Britain’s top stocks slid further in value on Friday morning after worries over Donald Trump’s import taxes shook the global financial markets.
Asked why the Government was consulting on possible retaliatory action given most economists say it would lead to a bigger hit to the economy, Exchequer Secretary to the Treasury James Murray told Sky News on Friday: "We've been negotiating intensively to secure a deal since the Prime Minister went to Washington earlier this year and we're continuing those negotiations at pace to secure a deal now.
"Obviously we're engaging with businesses, we have been throughout this process.
"The next stage of engagement is to ask their input about what possible measures would look like in terms of the UK response, because we want to involve businesses in that decision, and we need to be clear that we keep all options on the table... we reserve the right to retaliate, but we want a deal, and our full focus is on that."
On Wednesday, Mr Trump’s "liberation day" saw countries across the world hit with a wave of tariffs. The US President said the UK would face a blanket 10% tariff.
London's FTSE 100 Index of companies hits lowest level since January, dropping by 0.68% to 8,416.71 in early trading on Friday.
Banking stocks were among the heavier fallers, with Asia-focused firm Standard Chartered dropping by around 4%.
Mining and commodity stocks were also among the fallers, after specific tariffs on metal production, such as aluminium.
Elsewhere in Europe, the French Cac 40 index was 0.68% lower and the German Dax was 0.71% lower.
It came after further declines in the Asian markets after heavy losses across global stock markets on Thursday.
The Foreign Secretary said said he regretted the "return to protectionism" in the US and that Britons would be "very concerned" about how tariffs affect their finances.
David Lammy told reporters on Friday: "The United Kingdom, like France, is a great maritime nation.
"We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we've not seen for nearly a century.
"As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
"And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.
"We will put their national interest first, and it's in their national interests to be negotiating with the United States an economic agreement at this time, but keeping all options on the table."
