Further afield, European economies are also at risk from Trump's tariff regime. The U.S. president told reporters on Sunday that tariffs on the EU "will definitely happen" — but said a deal "could be worked out" with the U.

With the US President threatening import tariffs, the Crown Dependencies' strong financial services may make a trade war with the UK less likely. | ITV News Channel

Donald Trump has said import taxes will "definitely happen" with the EU. He said the UK "is out of line" on trade with the US and told reporters "we'll see what happens".

Donald Trump is poised to carry out his threat to impose trade tariffs on the EU, but signalled the UK could be spared for now.

After a meeting in Poland, the European Commission committed to staying together and negotiating with President Trump.

The European Union wants to engage swiftly with the United States over President Donald Trump's planned tariffs, trade chief Maros Sefcovic said on Tuesday, while his boss Ursula von der Leyen stressed the bloc would protect its interests in negotiations.

U.S. President Donald Trump said trade tariffs would be imposed on the European Union and U.K., but he signaled that a deal could be worked out with Britain.

President Donald Trump says Europe has ‘abused’ the U.S. for years and should expect tariffs soon. CNN’s Anna Stewart breaks down what that could mean for the 27 member states– with one key country particularly at risk.

U.S. President Donald Trump said on Sunday that although Britain was "out of line" when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: "I think that one can be worked out".