Some economists have also warned that Trump’s proposals around trade would come as a “shock” to countries around the world, including the eurozone and the UK economy.

Chancellor Rachel Reeves has said the UK would make “strong representations” to president-elect Donald Trump about the need for free and open global trade.

“The US also benefits from that access to free and open trade with us and other countries around the world, and it’s what makes us richer as societies, to benefit from that open trade,” she said.

Donald Trump has said he would dramatically increase trade tariffs, especially on China, if he became the next US president.

Ahmet Kaya, principal economist for the National Institute of Economic and Social Research (Niesr), also said the UK could be “one of the countries most affected” under such plans.

It estimates that economic growth in the UK would slow to 0.4% in 2025, down from a forecast of 1.2%.

Katrina Ell, director of economic research at Moody’s Analytics said: “Trump’s global trade policies are causing particular angst in Asia, given the strong protectionist platform on which more aggressive tariffs on imports into the US have been pledged.”

Trump’s more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China.

The self-ruling island is a major producer of computer chips, which are crucial to the technology that drives the global economy.

Investors also have other key issues to focus on this week.

On Thursday, the US Federal Reserve is due to announce its latest decision on interest rates.

Comments from the head of the central bank, Jerome Powell, will be watched closely around the world.