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.

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,

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

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.

Donald Trump could hammer British businesses with bigger US trade tariffs than China after the US president announced plans to punish countries charging VAT on American goods. UK industry leaders called on the Government to start urgent talks with Washington after being warned they "could be significantly hit" by the move.

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.

Liberal Democrat leader Sir Ed Davey has urged the UK to hit back against the US if Donald Trump slaps tariffs on British steel and aluminium exports. The UK has so far declined to join the EU and Canada in threatening immediate retaliation if a planned 25% import tax comes into force next month.

President Trump president plans to charge the same amount as levies imposed on American exports in a move he says is ‘fair to all’