Britain faces huge fines in an EU legal battle that would poison the Brexit negotiations, if Liam Fox secures a UK-only exemption from Donald Trump’s trade tariffs on steel and aluminium imports.

The British Trade Secretary, who on Thursday accused the EU of acting like a gang in Brexit talks, said he would use a trip to Washington next week to secure a British carve-out from the US President’s levy of 25pc tariffs on steel and 10pc on aluminium.

On Thursday Mr Trump said he would press on with the tariffs, which he claimed was in the interest of national security, despite the reservations of his Republican party. He said that “allies” could negotiate their own exemptions from the tax, after revealing Mexico and Canada would not be hit with the tariffs.

The European Commission is in charge of the common trade policy of all 28 member states, including Britain. Until the UK leaves the bloc, it will have the same “rights and obligations” as any member nation.