Sir Keir Starmer has said US-UK trade talks are “well advanced” ahead of tariffs expected to be imposed by Donald Trump on the UK this week – but rejected a “knee-jerk” response.

Speaking to Sky News political editor Beth Rigby, the prime minister said the UK is “working hard on an economic deal” with the US and said “rapid progress” has been made on it ahead of tariffs expected to be imposed on Wednesday.

But, he admitted: “Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.

“But I have to act in the national interest and that means all options have to remain on the table.”

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Sir Keir added: “We are discussing economic deals. We’re well advanced.

“These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.”

Downing Street said on Monday the UK is expecting to be hit by new US tariffs on Wednesday – branded “liberation day” by the US president – as a deal to exempt British goods would not be reached in time.

A 25% levy on car and car parts had already been announced but the new tariffs are expected to cover all exports to the US.

Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is “hopeful” the tariffs can be reversed soon.

But he warned: “The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.”

He added the government was taking a “calm-headed” approach in the hope a deal can be agreed but said it is only “reasonable” retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.

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Tariff announcement on Wednesday

Mr Trump has been threatening tariffs – import taxes – on countries with the biggest trade imbalances with the US.

However, over the weekend, he suggested the tariffs would hit all countries, but did not name them or reveal which industries would be targeted.

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Mr Trump will unveil his tariff plan on Wednesday afternoon at the first Rose Garden news conference of his second term, the White House press secretary said.

“Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” Karoline Leavitt said.

“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades. He’s doing this in the best interest of the American worker.”

Tariffs would cut UK economy by 1%

UK government forecaster the Office for Budget Responsibility (OBR) said a 20 percentage point increase in tariffs on UK goods and services would cut the size of the British economy by 1% and force tax rises this autumn.

Global markets remained flat or down on Monday in anticipation of the tariffs, with the FTSE 100 stock exchange trading about 1.3% lower on Monday, closing with a 0.9% loss.

On Wall Street, the S&P 500 rose 0.6% after a volatile day which saw it down as much as 1.7% in the morning.

However, the FTSE 100 is expected to open about 0.4% higher on Tuesday, while Asian markets also steadied, with Tokyo’s Nikkei 225 broadly unchanged after a 4% slump yesterday.

A man inside Mandalay has told Sky News bodies remain under “collapsed and inclining” buildings after the Myanmar earthquake – as a woman was freed from rubble after 91 hours.

The local inside Myanmar said many of the structures in the city were wrecked or badly damaged after the 7.7 magnitude quake on Friday, adding: “There are some bodies, some dead bodies, that still remain and other destruction”.

Meanwhile, in a televised address, Myanmar’s military leader Min Aung Hlaing said the number of dead had risen to 2,719 and is expected to exceed 3,000.

Some 4,521 people have been injured, while a further 441 are missing.

More than 10,000 buildings are known to have collapsed or been severely damaged in central and northwest Myanmar, the World Health Organisation said.

Smell of dead bodies near destroyed buildings

In Mandalay, Myanmar’s second-largest city, which was close to the quake’s epicentre, 50 children and two teachers were killed when their preschool collapsed, the United Nations said.

The local in the city told Sky News that “a lot of local assistance associations like charity groups are still struggling with digging out the corpses, the dead bodies, from the destruction”.

He said that “when we pass near the destructions, the collapsed building or very damaged building, we can smell” dead bodies.

“The smell of the dead bodies after four days… it still remains,” he said, before adding: “For the social assistance association… they need permission [to give aid] especially from the government.

“If they don’t have permission, then they cannot do anything.”

He also said others in Mandalay are struggling after the earthquake, which followed the city being affected by cyclones, the COVID-19 pandemic, and the civil war in Myanmar – where a junta seized power in a coup in 2021.

“Some people, they say they have nothing at all,” the local added. “They have no more home, they have no more belongings, because its already damaged.”

Woman freed after 91 hours under rubble

It comes after the fire department in Myanmar’s capital freed a woman trapped under rubble 91 hours after the building collapsed.

The 63-year-old woman was freed early on Tuesday in Naypyidaw.

As the country continues to recover, a worker from the International Rescue Committee said people fear aftershocks and are sleeping outside on roads or in open fields.

Communities are struggling to meet basic needs such as access to clean water and sanitation, and emergency teams are working “tirelessly” to locate survivors and provide aid, the UN said in a report.

Rescue efforts have been complicated by the civil war, as rebel groups say the junta has conducted airstrikes, even after the quake, while NGOs fear that certain areas could be denied vital supplies.

“Myanmar’s military has a longstanding practice of denying aid to areas where groups who resist it are active,” said Joe Freeman, a researcher with Amnesty Myanmar.

“It must immediately allow unimpeded access to all humanitarian organisations and remove administrative barriers delaying needs assessments.”

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Myanmar earthquake leaves some areas almost completely destroyed

The quake was the strongest to hit the southeast Asian country in more than a century.

In neighbouring Thailand, rescuers are still scouring the ruins of a collapsed, unfinished skyscraper for any signs of life.

“There are about 70 bodies underneath, and we hope by some miracle one or two are still alive,” volunteer rescue leader Bin Bunluerit said.

Six human-shaped figures have been detected by scanners, said Bangkok’s deputy governor, Tavida Kamolvej.

Thirteen deaths have been confirmed at the building site, with 74 people still missing, while Thailand’s national number of dead stands at 20.

The father of a paramedic killed by Israel in Gaza has told Sky News he would have been on the mission to rescue wounded colleagues, but was ill that day and so his son went instead.

“It was supposed to be me, you know. I was on duty that night but fell ill and sent him in my place.”

Speaking at his son’s funeral, Hassan Abu Hileh said Israel is to blame for the death of Mohammed and the other 14 men.

“We need protection from the international community. We need protection for medical teams. We are medics-soldiers of duty, not armed fighters. We carry out humanitarian work. If I see someone who needs medical attention, I’m obligated to serve them,” he said.

The bodies of the Red Crescent and United Nations workers went missing around eight days ago. Despite repeated requests to search for them, all denied by the Israel Defence Forces (IDF), the UN eventually found 14 bodies buried under sand in a mass grave. One is still missing.

They were still wearing their uniforms.

The director of the Palestinian Red Crescent in Gaza has accused Israel of murdering the emergency workers. “We arrived at the scene of the crime to retrieve the bodies and found that all of them had been shot directly in the upper part of their bodies and buried,” said Dr Bashir Murad.

“The ambulances were also destroyed and buried.”

The bodies were found in sand in the south of the Gaza Strip in what Jonathan Whittall, Gaza head of the UN Office for the Coordination of Humanitarian Affairs, called a “mass grave”, marked with the emergency light from a crushed ambulance.

Mr Whittall posted pictures and video of Red Crescent teams digging in the sand for the bodies and workers laying them out on the ground, covered in plastic sheets.

The Israel Defence Forces (IDF) has denied killing innocent medical workers and said Israeli forces opened fire on suspicious vehicles that were travelling without coordination and in an active combat zone.

“The IDF did not randomly attack an ambulance on March 23,” claimed a spokesman.

“⁠Last Sunday, several uncoordinated vehicles were identified advancing suspiciously toward IDF troops without headlights or emergency signals. IDF troops then opened fire at the suspected vehicles.

“Earlier that day, cars that did not belong to terrorists were coordinated and passed safely on the same route.”

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We have asked the IDF why the bodies were found in a mass grave but have received no comment.

More than 400 aid workers have been killed in Gaza since the start of the Israel-Hamas war, according to the UN.

According to the UN, at least 1,060 healthcare workers have been killed in the 18 months since Israel launched its offensive in Gaza after Hamas fighters stormed southern Israel on 7 October 2023.

The UN is reducing its international staff in Gaza by a third because of safety concerns.