Mon, 03 Feb 2025

How could Trump's tariffs affect the UK?

How might the UK be affected by Trump's tariffs, even if they are not imposed on the UK?

* Economists warn that even if the UK avoids direct tariffs, its economy could still be negatively affected by President Trump's trade policies.
* The impact could come through slower growth in the UK's trading partners, particularly in the EU.
* Industrial exports from the US to other countries could flood the UK market, and the financial markets could be impacted, including a possible increase in borrowing costs.
* The UK government will likely hope that President Trump uses American statistics, which show a trade surplus with the UK, rather than British statistics, which suggest a deficit.
* If tariffs are imposed on the UK's main trading partners, it could lead to slower growth and higher interest rates for the UK economy.
* The introduction of tariffs could also lead to "dumped" goods being sold in the UK market at below cost price, potentially harming UK steel producers and other manufacturers.
* Higher US interest rates could spill over into the UK borrowing markets, increasing government borrowing costs and slowing down economic growth.
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