Trump’s imposition of tariffs as high as 104% on certain Chinese goods has heightened global trade tensions, sent markets tumbling, and prompted UK officials to consider contingencies for supply chains and vital imports.

Billions in pension funds have been wiped out amid a global stock market meltdown, triggered by the escalating trade war as Trump threatens China with a new 50% tariff, prompting British policymakers and analysts to warn of potential long-term economic fallout.

The PM is expected to relax the 2030 petrol car ban by allowing hybrids to remain on sale for five more years, with ministers planning to close certain agencies to drive efficiency and shift towards a more interventionist approach in order to bolster businesses against global trade pressures.

Britain is weighing retaliatory tariffs on American electric cars, alcohol and clothing, spurring concerns of heightened transatlantic trade tensions and unsettling financial markets.