Donald Trump’s sweeping tax overhaul is set to hit some of Europe’s biggest lenders with a backdoor levy.

The “America first” measure buried in the tax plan, which the president signed into law on Friday, will leave overseas banks facing US funding costs 25% higher than their American rivals, according to analysis by the consultancy EY.

In an early sign of the financial implications for international banks, Credit Suisse said late on Friday that it expected to write down the value of its US business by £1.7bn as a result.

Shares in British lenders with substantial US operations, such as Barclays and HSBC, could come under pressure this week, with EY saying the reforms are set to tilt the playing field in favour of their