International Trade Secretary Anne-Marie Trevelyan told US officials that the UK was ready to increase existing retaliatory duties on American goods including whiskey, cosmetics and clothing.
Mr Trevelyan also said she was looking at subjecting more US products to punitive tariffs if Mr Biden does not cancel sanctions put in place by his predecessor.
Ms Trevelyan fired the warning during her first official stateside trip this week.
A senior UK official told the Financial Times: “We don’t want to use countervailing measures, but we’re getting a lot of pressure domestically to say that this is unfair.”
Speaking ahead of her visit, Ms Trevelyan said: “From Teesside to Tulsa, there are huge opportunities to deepen the trading links benefiting communities on both sides of the Atlantic
“We’ve already made strong progress; from getting British beef and lamb back on US plates, to lowering the cost of Scotch whisky exports by addressing the long-running Airbus-Boeing issue.
“Now is the time to hit the ground running and get on with boosting ties with our closest ally.”
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