North American funds saw £622m in outflows in May, according to the latest data from the Investment Association.

Fund groups are turning their backs on US investments because they expect Donald Trump’s reciprocal tariffs to be partially reintroduced when the current 90 day pause expires on 8 July.

The UK and US Governments have agreed a trade deal to reduce import taxes and remove tariffs.

Donald Trump’s tariffs could hit UK pensions, with DC savers warned they may experience a 20% cut in their retirement income.