The Prime Minister said the UK would “have to make sure that we avoid tariffs” as he faced questions on his approach to incoming US president Donald Trump.

Mr Trump has pledged to introduce wide-ranging tariffs on the first day of his new administration, which starts on January 20, with experts predicting damaging consequences for Britain’s goods trade with the US.

Questioned by the Commons Liaison Committee on Thursday about how he would dissuade Mr Trump from imposing such tariffs on the UK, Sir Keir Starmer said he was “alive to the danger of tariffs” but would not “speculate as to what the incoming president might do”.

He said: “I am not a fan of tariffs and, therefore, we have to make sure that we avoid tariffs.

“We have got very good trade with the US, as we have got very good trade with other countries around the world. I want to improve on that.”

Earlier this month, think tank Best for Britain said Mr Trump’s threatened tariffs could hit UK trade with the US as badly as Brexit hit trade with the EU.

Thursday’s committee hearing came a day after a phone call between the two men on Wednesday in which they discussed their “joint ambition to strengthen the close and historic relationship between the UK and the US”, according to a Downing Street spokesperson.

Downing Street has also not dismissed speculation that Sir Keir could pay a visit to Mr Trump early in 2025, following an initial meeting in New York this September.

At the time, Sir Keir said it had been “good” to meet Mr Trump to “establish a relationship”.

But relations with key members of the incoming president’s team – notably Elon Musk – have been more strained following the tech billionaire’s criticism of Sir Keir’s response to this summer’s riots and suggestions he could donate a significant sum to Reform UK.

On Thursday, the Prime Minister also dismissed the suggestion that the Government would have to choose between the US and the EU when it came to improving trade relations.

Insisting the UK could “pursue both”, he said: “We do want a closer relationship with the EU on security, on defence, on energy and, yes, on trade, and I’ve set out how we want to reset on a number of occasions.

“At the same time, I want to improve our trading relationship with the US. Is that going to be easy? Of course it’s not. Do I think we can make progress? Yes, I do.”