Economists: Trump's tariffs could plunge Britain into recession
TL;DR
Economists warn that President Trump's proposed tariffs could push the UK into recession, with GDP potentially falling by 0.3% to 0.75% and a £21.6 billion economic blow if tariffs rise to 25%.
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Odaily Odaily reports that economists warn the UK faces the risk of recession if President Trump swiftly implements his latest tariff threats. According to Capital Economics, if the new tariffs threatened by the US president are quickly imposed on top of the existing 10% import tax in the UK, UK GDP will decline by 0.3% to 0.75%. The World Bank's assessment of UK economic growth suggests that if Trump raises tariffs to 25% from June, the UK economy could suffer a £21.6 billion blow. Paul Dales, Chief UK Economist at Capital Economics, stated, "Currently, the UK economy is growing at only 0.2% to 0.3% per quarter; if the shock comes all at once, it could trigger a recession."