Following Trump’s tariffs announcements over the weekend, European and Asian stock markets fell, with car manufacturers particularly badly hit.

The UK was also impacted but to a lesser effect than the EU.

Analysis produced last year by the University of Sussex suggested the the UK could face a £22bn hit to exports if the US imposed a blanket 20% tariff on all imports.

The top goods exported from the UK to the US include cars, medicinal and pharmaceutical products and mechanical power generators.

Trump believes imposing tariffs will help grow the US economy and protect jobs, however it could lead to consumers paying more as prices adjust to the taxes.

On Monday, Mexican President Claudia Sheinbaum said the imposition of the 25% tariffs had been delayed after reaching an agreement with the US which would see her country deploy 10,000 troops to tackle drug trafficking into the US.

However, other countries responded angrily with Canada immediately announcing retaliatory tariffs of 25%.

French President Emmanuel Macron said that if EU interests were attacked, the trading bloc would have to “make itself respected and thus react”.

EU foreign policy chief Kaja Kallas said: “There are no winners in trade wars.”

If there’s a trade war with the US, “then the one laughing on the side is China”, she added.

Speaking on Sunday, Sir Keir was more cautious than his EU allies, saying: “It is early days. What I want to see is strong trading relations.”

Asked if he would put tariffs on the UK, President Tump said: “UK is out of line but I’m sure that one… I think that one can be worked out.”

He added that his discussions with the British prime minister had “been very nice” adding: “We’ve had a couple of meetings. We’ve had numerous phone calls. We’re getting along very well.”