Trade policy UK economy 'could be at risk from US tariff war'

The UK government is worried that a "tariff war" between the US and other countries could lead to higher inflation and unemployment, the trade secretary has said.

- Eleni Courea

Jonathan Reynolds, the business and trade secretary, warned the UK was vulnerable to the impact of US tariffs because it was a "very globally oriented economy" reliant on international trade and investment.

During his election campaign, Donald Trump pledged to introduce a blanket 20% tax on all foreign goods to protect domestic industries, despite warnings that such a move would fuel US inflation.