Will Scotland be spared from Donald Trump's higher tariffs? The US president has given an update

The American leader has sent a shockwave through the global economy in the past week, bringing in 25 per cent levies on goods from Mexico and Canada, along with an additional 10 per cent tax on imports from China.

Mexico and Canada have vowed to take retaliatory measures, while China said it could take "corresponding counter measures".

However, Mr Trump has now hinted the UK could be spared such tariffs, explaining it could all be “worked out”, and then praising Prime Minister Sir Keir Starmer for being “very nice”.

The US president said: “[The] UK is out of line. But I'm sure that one, I think that one, can be worked out. Prime Minister Starmer has been very nice. We've had a couple of meetings, we've had numerous phone calls. We're getting along very well and we'll see whether or not we can balance out our budget with the European Union.”

The Labour leader has been criticised for cosying up to the new Trump administration, but it is understood this playing up of the so-called “special relationship” has helped ease tensions.

The EU has already warned Mr Trump the bloc will retaliate if he imposes tariffs on EU goods. But there has been zero suggestion this has even been considered by the UK government. Most of the UK’s exports to the US are services, such as banking and consulting, which are not subject to tariffs. Sir Keir threatening to impose his own tariffs would not only damage the UK economy, but drive up prices during a cost-of-living crisis.

The Centre for Economics and Business Research has claimed 20 per cent tariffs could cost British industry £2.5 billion a year. Avoiding this is vital to Britain’s businesses. Whisky, salmon and textiles including knitwear are key Scottish exports to the US, and there have been warnings that tariffs would mean a shrinking market or not even being able to sell products in the US.

If the US president holds to his word of striking a deal with the UK, it would be welcome news for Scotland, which was hit with a 25 per cent tariff on single malts under the previous Trump administration.