Trump's Reciprocal Tariffs Threaten British Economic Growth

President Donald Trump's proposed reciprocal tariffs could reduce British economic growth by up to 1%, as per the Office for Budget Responsibility. The tariffs may lead to higher inflation in the UK. Britain is negotiating to avoid the impact of these tariffs due to its trade-intensive economy.

President Donald Trump's threat to impose new reciprocal tariff rates on international trade partners could lead to a significant dip in British economic growth, according to the Office for Budget Responsibility (OBR). The OBR forecasts a potential decline of up to 1% in the UK's growth rate.

In a scenario where the United States enacts a 20-point increase in tariffs, the UK's economy could suffer, as Trump aims to eliminate a substantial global trade deficit. Such tariffs would counter other countries' trade barriers, but the move may severely impact British trade.

Prime Minister Keir Starmer, along with Business Minister Jonathan Reynolds, is actively seeking a resolution to avoid these tariffs, recognizing the potential disproportionate effect on the UK's trade-intensive economy. Meanwhile, the aggressive tariff initiative continues to experience fluctuating implementation strategies.

(With inputs from agencies.)