Nigel Farage has compared Donald Trump's tariff blitz to Liz Truss's disastrous mini-budget after doing "too much too soon". Markets around the world plummeted this week following the US President's levies taking effect on nations globally.

A snap announcement of a 90-day pause on reciprocal tariffs means traders importing to America from across the world now face the 10% rate – apart from China, which has been singled out for massive, prohibitive levies. When the UK was originally faced with the 10% rate on Mr Trump’s so-called “liberation day”, it was seen as favourable compared to others like the EU, which faced a 20% tariff.

But the UK is now in the same position as other nations.

When asked whether Mr Trump will emerge as "chump or champion" of his stance on tariffs, Mr Farage said: "Remains to be seen.

"I've never agreed with the tariff policy. I do understand, though, that China poses an existential threat to the west economically and perhaps even, ultimately, in different ways as well. Do you know what, I think Trump did too much too soon, rather like Liz Truss did a couple of years ago. I've never in my life before seen stock markets fall quickly and bond markets fall at the same time.

"So there's little doubt that Scott Bessent, the [US] Treasury Secretary, who’s also a friend of mine, played a decisive role in saying, whoa, we've got to ease back on this. As for the slugging it out with China, who's going to win, right now, I just don't know.

Liberal Democrat leader Ed Davey has also described the tariff saga as “Donald Trump’s Liz Truss moment".

Ms Truss, who served as the UK's Prime Minister for 49 days in 2022, triggered a meltdown in the bond markets with £45 billion of unfunded tax cuts.

Mr Trump's surprise announcement of the 90-day pause to hefty tariffs imposed on some countries brought respite to battered stock markets across the globe, including London’s FTSE 100.

UK stock markets opened higher on Friday after the FTSE 100 index jumped about 3% on Thursday, while Europe’s main indexes were also climbing after traders warmly welcomed Mr Trump’s tariff pause.

But analysts said the gains were likely to reflect a short-lived relief rally, with concerns over US policy remaining and the prospect of all-out trade war between the US and China intensifying.