Rain Newton-Smith, head of the UK’s leading business group, will urge the government to ignore the “siren call of protectionism” amid mounting tensions in the global economy.

In a speech set to be delivered later today, the chief executive of the Confederation of British Industry (CBI), will call on the government to forge deeper ties with all of the world’s major economic blocs, including China.

“There may be tension between the established big blocs – the US, the EU and China. There may be pressure to fall in behind one or more. But we must not,” she will say.

“Engagement is always better than protectionism – or sticking our heads in the sand.

“So when it comes to China, we must be practical. Yes, let’s recognise the security concerns. But full decoupling from China is not realistic and it is not right. It does not sit with our commitment to free and fair trade. And it does not sit with our need to answer the global challenges of 2025.”

The speech comes just days after Donald Trump imposed 10 per cent tariffs on China, signalling an escalation in the economic dispute between the two largest economies in the world.

Trump’s tariffs prompted the Chinese government to announce a range of retaliatory measures, including new duties on a range of US products and antitrust investigations into Google and Nvidia.

Mexico and Canada were also due to face 25 per cent tariffs on their goods exports to the US, but these were delayed by a month following last ditch talks.