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 hitting UK with tariffs because of VAT slammed by top tax expert - A senior minister said the Government would ‘wait and see’ whether tariffs announced on Thursday ‘actually come to pass’

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.

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.

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