Economists Warn: Trump's New Tariff Policies Could Drag the UK Economy into Recession

Trump's Tariff Threat Sparks Concerns Over UK Economy

Economists have expressed concerns over the potential impact of the Trump administration's tariff threats on the UK economy. According to Capital Economics, if new US tariffs are imposed on top of the existing 10% import tax, the UK GDP could fall by 0.3% to 0.75%.

Potential for Major Economic Losses

World Bank projections suggest that raising tariffs to 25% could cost the UK economy as much as £21.6 billion. This figure has sparked alarm over the potential consequences for economic growth.

• Paul Dales, Senior UK Economist at Capital Economics, notes the UK economy is currently growing by just 0.2% to 0.3% per quarter.
• A sudden tariff shock could push the economy into a recession.
• Experts advise the UK government to develop strategies to reduce dependency on external policy shifts.