What will be the impact on the UK?

The UK economy will be hit by the indirect effects of White House policy.

First, tariffs are likely to lead to a general slowdown in global trade volumes, which will depress economic growth, particularly for an open economy such as the UK. Trump’s approach is also expected to push up prices, leading to a temporary resurgence in inflation.

If financial markets start betting on higher inflation – and hence higher interest rates – that is likely to drive up the cost of borrowing in the US. And that in turn has tended to increase the yields on UK government bonds, known as gilts, because the two markets are closely interlinked.

Higher gilt yields – and hence higher government borrowing costs – will make it harder for the chancellor, Rachel Reeves, to meet her self-imposed fiscal rules, and could prompt her to make cuts to future spending plans.

How could this affect the UK’s plans to negotiate a closer relationship with the EU?

It’s complicated. So far, UK ministers have tried to placate Trump – with Reeves praising his optimism, for example. But with the EU expected to be subject to US tariffs, and potentially to retaliate, it may become increasingly difficult for the UK to avoid picking sides.

The EU is the UK’s closest and largest trading partner, and a UK-EU summit is planned for the spring at which there are hopes of striking a deal that could help dismantle some post-Brexit trade barriers. But the UK may now feel constrained by a desire not to offend Washington.

What will happen if Trump imposes tariffs on the UK?

Most of the UK’s exports to the US are services, such as banking and consulting, which do not tend to be subject to tariffs.