Wed, 05 Mar 2025

Wed, 05 Mar 2025 US tariffs could hit UK consumers, Bank experts warn

Trump tariffs could affect UK economic growth, hitting UK consumers in the pocket, Bank experts warn

* The Bank of England has warned that US President Donald Trump's tariffs could reduce UK consumers' income.
* Tariffs imposed by the US could also pose significant risks to both the UK and global economies, according to Governor Andrew Bailey.
* Trade frictions with the US could negatively impact companies in the UK and other countries.
* The Bank of England experts have urged for trade disputes to be resolved through the World Trade Organization (WTO) rather than through bilateral agreements.
* Tariffs could affect the UK economy in multiple ways, including: + Reducing growth + Lowering inflation + Increasing costs for companies due to supply chain fragmentation and reordering.
* The Bank of England's monetary policy committee members agreed that the risks associated with Trump tariffs outweigh any potential benefits.
* Governor Bailey stated that trade is essential for economic growth and innovation, and warned that the risks posed by trade barriers could be severe.
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