Britain is exploring a nearer alignment with the EU on Brexit, including a potential defence pact, as ministers signal an adjusted stance while hopes for a swift trade deal with the US diminish.

The President has temporarily paused certain reciprocal charges while levying a 125% rate on Chinese imports, with potential consequences for manufacturing, medicines, and other industries that could see price increases and job protection measures brought forward.

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.