Global markets have suffered massive losses following sweeping tariffs from the US, prompting calls for caution from business leaders and the PM as they assess the potential long-term impact on economic growth.

Donald Trump has declared new import levies on British goods at a baseline of 10%, extending a 20% rate to the EU and framing the move as a bold step towards economic self-reliance, with the measures set to begin on Saturday.

Businesses are advised to prepare for potential economic fallout from proposed US tariffs, with the PM choosing not to retaliate while pursuing a more favourable trade agreement.

The PM has acknowledged that impending US tariffs could harm Britain’s economy, with officials describing the negotiations as challenging as they strive for a favourable deal.