Trump tariffs LIVE: UK braces for Liberation Day as US President to make key announcement

Bridget Phillipson told Sky News:”We know that we’re entering a challenging period and a trade war with the US would be in no one’s interests. We believe we are in a strong position to strike that kind of deal.”

Asked whether the Government would consider abandoning its fiscal rules in the event of exceptional trade circumstances, she said: “I’m not going to speculate on hypotheticals, not least because those negotiations are still under way.

“We’re working incredibly hard to secure a deal that’s in Britain’s national interest, but fiscal rules do matter.

“They matter because we have to demonstrate that we have a clear sense about how we manage the public finances.

“I think your viewers will have seen in recent years with the Liz Truss government, what happens when you have a government that doesn’t have a grip on the public finances and isn’t prepared to make choices about priorities, and our fiscal rules are important, and they do matter.”