Odaily News Economists warn that the UK faces a risk of recession if Trump swiftly advances his latest tariff threats. According to Capital Economics calculations, if the new tariffs threatened by the US President are rapidly imposed on top of the UK's existing 10% import duties, UK GDP could fall by 0.3% to 0.75%. Based on the World Bank's assessment of UK economic growth, if Trump raises tariffs to 25% starting in 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 by only 0.2% to 0.3% per quarter. If the shock arrives all at once, it could trigger a recession."

Odaily News According to a disclosure by the US financial media Semafor, Trump plans to host a reception for CEOs in Davos this Wednesday. (Jin10)

Odaily News On January 19th, analysts stated that as U.S. President Trump is considering imposing tariffs on European countries regarding Greenland, increasing uncertainty in U.S. policy, the dollar faces new downward pressure. David Forrester, an analyst at Crédit Agricole, said: Trump's tariff threats have reignited the "sell America" sentiment. The market will also focus on the "TACO trade" (Trump Always Caves On), as Trump may use tariff threats as a negotiation strategy. This will provide some support for the dollar.

In 2026, with the intensification of geopolitical risks during President Trump's term, the euro will be one of the biggest losers. Tariffs could exacerbate the cyclical headwinds for the Eurozone economy and further weaken Europe's pressure on Russia over the Ukraine issue. (Jin10)

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