US trade deficit falls to three-year low in wake of China standoff

Fears grow that Donald Trump will now set his sights on the EU and the UK

The gap between US imports and exports shrank to its lowest level in three years in November following a 15% decline in the country's annual trade deficit with China.

A boost to US exports also improved the trade balance, fuelling concerns that Donald Trump will expand his campaign to squeeze the US trade deficit, which has so far focused on China, to include the EU and the UK.