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 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.