Donald Trump’s latest plan to slap tariffs on US imports based on sales taxes in their country of origin could shave £16 billion ($20 billion) off UK economic output over the next two years, in what would be a blow to Prime Minister Keir Starmer’s promise to fire up growth.

Concerns are growing the UK could be hit with higher US trade taxes after President Donald Trump announced he would target VAT in his latest move. Trump has instructed his staff to develop custom "reciprocal tariffs" - charging the same amount as levies imposed on American exports - for each country.

The British Government will not 'overreact', senior minister says after US president signs policy on retaliatory tariffs

Donald Trump’s latest tariff proposal could see UK exports hit with higher trade taxes, as VAT is included in tariff calculations. Analysts warn of potential 20% levies on British goods, impacting key sectors like cars,

Donald Trump has vowed to impose tariffs on countries that charge VAT, leaving Britain at risk of a £24bn blow to its economy...

Britain entered a rare deficit in its goods trade with the United States at the end of last year, according to data published on Thursday that London will hope bolsters its case against the imposition of new tariffs by President Donald Trump.

The White House argued that charging the same import taxes as other countries do would improve the fairness of trade and raise revenues for the US.