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Ministers expect Britain’s “privileged trading position with the US” to continue after Donald Trump’s tariffs were struck down by the country’s supreme court.
The US Supreme Court overturned Mr Trump’s “reciprocal tariffs”, which were imposed on most of the world last April under an emergency powers law.
The ruling, which came on Friday, was a major blow to the president’s economic agenda.
Britain received the lowest tariff rate of 10 per cent, and a subsequent deal struck by Sir Keir Starmer and Mr Trump saw further carve-outs for Britain’s steel industry and car manufacturers.
The decision raises questions over whether those deals still stand, although officials are understood to believe it will not impact most of the UK’s trade with America, including preferential deals on steel, cars and pharmaceuticals.
A government spokesperson said: “This is a matter for the US to determine, but we will continue to support UK businesses as further details are announced.
“The UK enjoys the lowest reciprocal tariffs globally, and under any scenario, we expect our privileged trading position with the US to continue.
The ruling was a major blow to Donald Trump’s economic agenda (Kevin Dietsch/Getty)
“We will work with the Administration to understand how the ruling will affect tariffs for the UK and the rest of the world.”
Speaking to reporters in Scotland, Conservative leader Kemi Badenoch said she was “thrilled” by the decision, adding: “Tariffs are expensive for both sides.
“The consumer in the US pays more, as does the supplier in the UK or in other countries, so I hope that this holds.”
The US has collected more than $133bn (£98.4 billion) since Mr Trump imposed the tariffs, but now faces the prospect of having to refund that money to importers.
Friday’s decision, approved by a 6-3 majority, found that a 1977 law did not give Mr Trump the power to impose tariffs without the approval of the US Congress.
The British Chambers of Commerce (BCC) said the decision did little to “clear the murky waters for business” around US tariffs.
William Bain, head of trade policy at the BCC, said Mr Trump could use other legislation to re-impose tariffs.
He said: “For the UK, the priority remains bringing tariffs down wherever possible. It’s important the UK Government continues to negotiate on issues like steel and aluminium tariffs and reduces the scope of other possible duties.”
Campaign group Best for Britain said the decision “underlines the instability of doing deals with Trump’s USA and the importance of forging deeper, more reliable trade with our EU neighbours”.