Economist: Trump's Tariff Increases Could Plunge the UK into Recession

Odaily Economists warn that the UK faces a risk of economic recession if Trump swiftly advances his latest tariff threats. According to Capital Economics calculations, if the new tariffs threatened by the US President are quickly imposed on top of the UK's existing 10% import tax, 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 hit. Paul Dales, Chief UK Economist at Capital Economics, stated: "Currently, the UK economy is only growing by 0.2% to 0.3% per quarter. If the shock arrives all at once, it could trigger a recession."