UK vows to 'remain calm' and pursue trade deal after Trump's 10% tariffs

LONDON (Reuters) -Britain's business secretary vowed to "remain calm" and insisted he still wants a trade deal with the United States after President Donald Trump's decision on Wednesday to impose import tariffs of 10% on the United Kingdom.

Trump said Britain would be among the countries who would face the new lowest tariff rate on imports to the United States, while dozens of other nations faced higher duties.

"The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today," Business Secretary Jonathan Reynolds said in a statement after the tariffs were announced.

"We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take."

Britain has been attempting to reach an economic deal with the U.S. by offering to more closely align with Washington on areas such as technology, and has expressed hope that any tariffs can be reversed quickly once the two sides agree terms.

Unlike the European Union and other major economies, Britain has not retaliated over other U.S. tariffs but has said that it would keep all options on the table.

"Nobody wants a trade war and our intention remains to secure a deal," Reynolds said.

British business groups welcomed the government's approach, saying that while they were deeply disappointed by the tariffs, retaliating would only cause further economic disruption.

"A cool and calm reaction from the UK Government is the right response: UK firms need a measured and proportionate approach which avoids further escalation," Rain Newton-Smith, the chief executive of the Confederation of British Industry, said in a statement.

Britain's opposition Conservative Party blamed the Labour government for failing to negotiate an exemption from the tariffs, while the Liberal Democrats accused the U.S. of launching a "destructive trade war".

Reynolds will update parliament on Thursday on the government's response to the tariffs.

(Reporting by Andrew MacAskill; Editing by Sachin Ravikumar)