The Office for Budget Responsibility (OBR) warned that if the protectionist US plan developed into a full-blown global trade war it could reduce UK GDP by a full 1 per cent on its own.
Experts warn that Donald Trump's trade tariff plans could hinder UK economic recovery, potentially cutting GDP by 1% and raising inflation by 0.6% if a full-blown global trade war develops. The UK is seeking to avoid the worst impacts of the tariffs, with concerns focused on the potential economic consequences and "increased global uncertainty". Trump's previous tariffs on UK/EU steel and aluminum have prompted retaliatory measures. Potential scenarios include the US increasing tariffs on multiple countries and those countries retaliating with equivalent tariffs on US goods.
