UK expects to be hit by US tariffs this week, PM's spokesman says

LONDON (Reuters) -Britain expects to be hit by U.S. President Donald Trump's plans to impose global tariffs this week and the government has been preparing for all eventualities, Prime Minister Keir Starmer's spokesman said on Monday.

Talks between Britain and the United States to negotiate a new economic deal that would avert the tariffs are expected to continue beyond Wednesday, when Trump is expected to unveil the worldwide tariffs, the spokesman said.

"We have been actively preparing for all eventualities ahead of the expected announcement from President Trump this week, which (we) would expect the UK to be impacted alongside other countries," the spokesman told reporters.

Trump is set to announce new reciprocal tariff rates on what he has called "Liberation Day" on April 2, after implementing levies on aluminium, steel and automobiles, along with increased tariffs on all goods from China.

The action aims to shrink a $1.2 trillion global goods trade deficit by raising U.S. tariffs to levels charged by other countries and counteracting their non-tariff trade barriers.

Starmer held what Downing Street called a "productive" phone call with Trump on Sunday as the British leader seeks to avoid the tariffs.

Although British ministers have said no options are off the table in response to any such tariffs, they have played down the likelihood of immediate retaliation against the United States, arguing that a trade war is bad for global economic growth.

Britain's Office for Budget Responsibility (OBR) watchdog said last week that higher U.S. import tariffs would harm the UK's economic activity and would wipe out almost all of the government's fiscal buffer.

The OBR said U.S. tariffs on its trade partners in general could cut the size of Britain's economy - which is highly exposed to swings in international trade - by as much as 1%.

(Reporting by Elizabeth Piper. Writing by Andrew MacAskill, editing by Sarah Young)