Donald Trump blamed for sluggish Scottish economy after tariffs slapped on exports
Donald Trump's decision to slap tariffs on exports to the United States has been blamed for the sluggish state of the Scottish economy.
Experts at the independent Fraser of Allander Institute today downgraded their forecasts for Scottish economic growth to just 0.8 per cent in 2025 and one per cent in 2026.
And the think-tank warned economic recovery from repeated covid lockdowns was weaker in Scotland than the rest of the UK.
They said poor growth was "largely due to higher global uncertainty" – linked "particularly" to the US President's trade tariffs.
Professor Mairi Spowage said: "After a strong start to the year, the Scottish economy has faltered in March and April and is essentially the same size in real terms as it was six months ago.
"Unfortunately, the wider business environment and global events are still taking a toll on businesses and consumers, which is having a dampening effect on spending and business investment."
It noted Scottish real GDP grew 0.4 per cent in the first quarter of 2025, compared to 0.7 per cent in the UK as a whole.
The think tank said: 'A pattern of lower growth in Scotland has persisted, leading to a weaker recovery from the pandemic than the UK generally.'
The report added: "The slowdown in growth this year is largely due to higher global uncertainty, particularly from the announcement of tariffs in the US and elsewhere.
"With the CPI (Consumer Prices Index) rate at 3.4% in May 2025 after staying below 3% throughout 2024, an uptick in inflation has also played a role."
Looking at the latest data, it found Scotland's economic growth had 'remained slow', with rises in the first months of 2025 having been 'partially offset' by decreases in March and April.
Tory MSP Craig Hoy said: "While there's no question external factors are impacting Scotland's economy, it's clear anti-business SNP policies are also stifling growth.
"The Nationalists' failure to fully pass on the rates relief available to businesses south of the border, coupled with them making Scotland the highest taxed part of the UK, explains why the growth rate here is even lower than the anaemic rate Keir Starmer is presiding over.
"Scotland is currently saddled with two disastrous, high-tax-low-growth, left-wing governments."
Deputy First Minister Kate Forbes said: "It is clearer than ever that Scotland's economy is being impacted by challenging global trading conditions and uncertainty – conditions mirrored across the rest of the UK.
"We are taking ambitious steps to grow the economy by pursuing new investment, building export potential and driving and capitalising on the Scottish innovation at the forefront of many key global industries.
"But we are doing all of this without the full economic powers needed to fully address the issues facing Scottish businesses. We need decisive action from the UK Government to counter the damaging economic impacts of Brexit and business uncertainty."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
a minute ago
- Daily Mail
Two men who despise each other, one hour that will change the world: Trump and Zelensky to face-off again as Europe furiously briefs Ukrainian on how not to upset the US President
Sir Keir Starmer is heading to meet Donald Trump today as part of Ukrainian President Volodymyr Zelensky 's entourage of European leaders. The Prime Minister will join France 's Emmanuel Macron, Germany's Friedrich Merz, Italy's Giorgia Meloni and Finland 's Alexander Stubb in the White House. NATO chief Mark Rutte and European Commission boss Ursula von der Leyen are also travelling to Washington DC to join the talks with Mr Trump and Mr Zelensky. The US and Ukrainian presidents are set to hold an hour-long meeting before wider discussions between Mr Trump and European leaders. They are expected to use those talks to urge Mr Trump not to cede to Vladimir Putin 's demands for Ukraine to surrender the whole of the Donbas region to Russia. The European leaders are being dubbed Mr Zelensky's 'back-up' following the Ukrainian President's previous acrimonious visit to the White House. In an astonishing spat in February, US vice-president JD Vance accused Mr Zelensky of not being thankful enough for American support in the face of Russia 's invasion. The public row resulted in US aid to Ukraine being temporarily halted and sparked fresh panic across European capitals that Mr Trump was siding with the Kremlin. Mr Zelensky and Mr Trump have since attempted to repair relations, including with talks in the Vatican on the sidelines of Pope Francis's funeral in April. But the US President infuriated Ukrainians by rolling out the red carpet for Mr Putin during their talks about a potential ceasefire in Alaska last week. Mr Trump also ratcheted up tensions ahead of Monday's talks by claiming Mr Zelensky 'can end the war with Russia almost immediately, if he wants to'. He also ruled out future NATO membership for Ukraine and said Crimea would not be returning from Russian annexation. In a post on his Truth Social website, the US President wrote: 'President Zelenskyy of Ukraine can end the war with Russia almost immediately, if he wants to, or he can continue to fight. Remember how it started. 'No getting back Obama given Crimea (12 years ago, without a shot being fired!), and NO GOING INTO NATO BY UKRAINE. Some things never change!!!' In a follow-up post, Mr Trump said it was a 'great honour' to host a slew of European leaders in Washington. 'Big day at the White House tomorrow. Never had so many European Leaders at one time. My great honor to host them!!! President DJT,' he wrote. Britain, France and Germany are said to have taken the lead on preparing Ukraine's delegation for Monday's meeting - including advice on how not to upset Mr Trump. Sir Keir met with Mr Zelensky in Downing Street on Thursday ahead of Mr Trump's talks with Mr Putin in Alaska. The Prime Minister and Mr Macron, the French President, also co-chaired a virtual meeting of the so-called 'coalition of the willing' on Sunday. Following the talks, Mr Macron said Ukraine's allies would 'present a united front' to Mr Trump during Monday's meeting in the White House. 'If we are weak with Russia today, we'll be preparing the conflicts of tomorrow and they will impact the Ukrainians and - make no mistake - they can impact us, too,' he added. Mr Zelensky is expected to face calls from Mr Trump to concede to full Russian control of Donetsk and Luhansk, two mineral-rich regions of Ukraine that are mostly occupied by Russia. In exchange for these demands, Mr Puting would reportedly withdraw his forces from other areas of Ukraine and accept a NATO-like guarantee that Ukraine would be protected from further incursion. European leaders have said it is up to Ukraine to decide how it wishes to end the war. Mr Trump has appeared to drop his calls for a ceasefire after his summit with Mr Putin in Alaska. The US President has instead said he wants to focus a long-term peace deal, although US secretary of state Marco Rubio has signalled a deal is 'still a long ways off'. There will be 'additional consequences' for Russia if it does not agree to a peace deal, Mr Rubio added, but he suggested fresh financial sanctions would be unlikely to force Mr Putin to the negotiating table. Ms von der Leyen suggested at a press conference on Sunday that both a ceasefire and a peace deal would have the same impact: to 'stop the killing'. Appearing alongside her, Ukraine's Mr Zelensky appeared to agree, though he also signalled his preference for a ceasefire. 'It's impossible to do this under the pressure of weapons. So it's necessary to cease fire and work quickly on a final deal,' he said. Government minister Stephen Kinnock this morning said Mr Zelensky must not be forced to accept a peace deal if he is not happy with its terms. He said Sir Keir had three objectives for when he meets Mr Trump at the White House alongside Mr Zelensky on Monday. He told Times Radio: 'The first of all is to make it absolutely clear that any decisions taken about Ukrainian territory must be taken with the agreement of the Ukrainian government and President Zelensky. 'The other is that the pathway for Ukraine to NATO and to security guarantees cannot be dictated to them by any other country. 'And the other is to send a very clear message that we the British people stand firmly shoulder-to-shoulder with the Ukrainian people as we showed when we opened our homes and our hearts to the Ukrainian refugees.'
Western Telegraph
13 minutes ago
- Western Telegraph
Sturgeon making Salmond claims because he cannot defend himself, niece says
Christina Hendry said if the former first minister and Alba Party leader was alive today he would have defended himself 'with every fibre of his being'. Ms Sturgeon made several claims about her predecessor in her memoir Frankly, which was published last week. Former first minister Nicola Sturgeon made several claims about Alex Salmond in her new book (Jane Barlow/PA) She accused Mr Salmond of creating conspiracy theories over sexual harassment allegations and said he did not read the independence white paper before the referendum in 2014. Ms Sturgeon also said Mr Salmond 'wanted to destroy me' and would have rather seen the SNP fail than succeed without him. Appearing on the BBC's Good Morning Scotland programme, Ms Hendry criticised Ms Sturgeon. She said: 'The way I see it is if my uncle was here today, these things would not be being said. 'I believe they are being said because he's not here to defend himself, as he would have done with every fibre of his being.' Alex Salmond died last year (Jane Barlow/PA) Asked what she thought had motivated Ms Sturgeon to make the claims now, Ms Hendry said: 'I'm unsure. I think there's been a few people questioning that. 'But I think the timing of these things being said – there's been a number of years where they've not been said, that these things could have been said, and the timing of it now, where she's released the book and is looking to publicise that. 'I think many people have thought that could be the case.' In her book, Ms Sturgeon said Mr Salmond had never produced a 'shred of evidence' that he was a victim of a conspiracy, adding that he admitted to her the substance of one of the complaints against him. A judicial review into the Scottish Government's handling of complaints against Mr Salmond found the investigation was tainted by apparent bias while a court cleared him of all charges. Alex Salmond's niece Christina Hendry, Alba Party chair Tasmina Ahmed-Skeikh and Alba Party leader Kenny MacAskill (Jane Barlow/PA) Ms Hendry said: 'The bottom line is he was cleared in the highest court in Scotland and I think I'm unsure as to why it's being brought up. 'I do think there were people conspiring against him, and I think there's the truth will still come out. 'There are things to still come out in the public, and I think there are many people who should be thinking about their actions.' Ms Hendry added that her family was united in pursuing legal action against the Scottish Government over its botched harassment probe. In December, she announced she would run to be an MSP in one of Mr Salmond's former seats. Ms Hendry said she would contest the Banffshire and Buchan Coast seat for Alba that her uncle had planned to campaign in before his death in North Macedonia in October.
Daily Mail
22 minutes ago
- Daily Mail
Zelensky defies Trump minutes after US President lays out his terms for peace - setting up another showdown at White House TODAY watched by European leaders
Ukrainian President Volodymyr Zelensky appears to have already rejected President Donald Trump 's terms for a peace plan with Russia as the two leaders prepare for an Oval Office showdown. Trump laid out his demands on Sunday night by telling Zelensky to sacrifice Crimea and give up his desire to join NATO in advance of Monday's blockbuster meeting in the White House. Zelensky returns to Washington DC for the first time since their famous bust-up in February. Unlike on his previous visit, Zelensky will be backed by the UK's Keir Starmer, France's Emmanuel Macron, and Germany's Friedrich Merz, who will all join him in Washington. Trump posted a dramatic statement that claimed Zelensky could 'end the war with Russia almost immediately' - which the Ukrainian leader rebuked within 90 minutes. 'President Zelensky of Ukraine can end the war with Russia almost immediately, if he wants to, or he can continue to fight,' Trump wrote on Truth Social about 9.20pm. 'Remember how it started. No getting back Obama given Crimea (12 years ago, without a shot being fired!), and NO GOING INTO NATO BY UKRAINE. Some things never change!!!' In response, Zelensky took to X to insist 'Russia must end this war, which it itself started,' railing against Trump's suggestion that he was solely responsible for ending the conflict. 'Ukrainians are fighting for their land, for their independence. Now, our soldiers have successes in Donetsk and Sumy regions,' he wrote. Zelensky also indicated he would not acquiesce to Trump on Crimea, territory which Russia annexed in 2014 and has been furiously defending during the three-year war. 'We all share a strong desire to end this war quickly and reliably. And peace must be lasting,' Zelensky wrote. 'Not like it was years ago, when Ukraine was forced to give up Crimea and part of our East - part of Donbas - and Putin simply used it as a springboard for a new attack. 'Of course, Crimea should not have been given up then, just as Ukrainians did not give up Kyiv, Odesa, or Kharkiv after 2022.' Zelensky took a lighter note while addressing Trump, taking pains to not criticise the president directly. 'I am confident that we will defend Ukraine, effectively guarantee security, and that our people will always be grateful to President Trump, everyone in America, and every partner and ally for their support and invaluable assistance,' he added. Meanwhile, fighting is still raging on in Ukraine. Kharkiv, which has been a constant target since Russia's full-scale invasion in February 2022, was hit by missiles and drones overnight in another wave of attacks that left civilians dead and homes destroyed. Local officials said three people were killed, including a two-year-old boy, and at least 17 were wounded. Graphic images have shown emergency crews carrying the lifeless body of a child. Regional governor Oleh Synehubov said the toddler was killed in a drone strike that struck early on Monday, only hours after a ballistic missile had slammed into the city on Sunday night. He wrote on Telegram that the number of injured was 'continuously increasing'. Despite the ongoing push for peace, Putin has been persistent in his attacks on Ukraine. Kharkiv mayor Ihor Terekhov confirmed two more people had been killed, while 17 others were hurt in the double strike. He added: 'A woman has just been rescued from under the rubble: she is alive,' warning that more victims could still be trapped. The earlier ballistic missile strike shattered around 1,000 windows in Kharkiv, according to Synehubov. Ukraine's state emergency service said some residents had to be evacuated as buildings were left unsafe. Reuters reporters in the city saw paramedics treating people on the streets and rescue teams inspecting damage to residential blocks. The wider region was also pounded. Two people were wounded in neighbouring Sumy, where officials said at least a dozen houses and an education centre were wrecked. Oleh Hryhorov, head of the Sumy regional administration, said on Telegram: 'The enemy continues to deliberately target civilian infrastructure in the Sumy region - treacherously, at night.' Meanwhile, although Zelensky expressed gratitude for both Trump and America in his statement, there were concerns across Europe that his meeting with Trump on Monday could end poorly. Leaders from Britain, France, Germany, Italy and Finland are rallying around the Ukrainian president and will join him in Washington for the highly anticipated meeting amid fears he is walking into a trap. The meeting comes days after Trump met with Putin for a two-and-a-half hour discussion in Alaska about the ongoing conflict In a sign of EU leaders' bullishness, French president Emmanuel Macron said afterwards: 'If we're not strong today, we'll pay dearly tomorrow.' Their pledge to be at Zelensky's side is an apparent effort to ensure the meeting goes better than the last one in February, when Trump berated Zelensky in a heated Oval Office encounter. At the time, the Ukrainian leader was asked to leave the White House by top Trump advisors following the heated confrontation. 'You're gambling with World War III, and what you're doing is very disrespectful to the country, this country that's backed you far more than a lot of people say they should have,' Trump told Zelensky. Vice President JD Vance chimed in, demanding that Zelensky show gratitude - asking, 'Have you said ''thank you'' once?' 'The Europeans are very afraid of the Oval Office scene being repeated and so they want to support Mr. Zelensky to the hilt,' said retired French General Dominique Trinquand. 'It's a power struggle and a position of strength that might work with Trump.' Trump appeared unfazed by the EU leaders' decision to join Zelensky to send him a message, writing on Truth Social on Sunday night: 'Big day at the White House tomorrow. 'Never had so many European Leaders at one time. My great honor to host them!!!' He added: 'The Fake News will say that it is a big loss for President Trump to host so many great European Leaders at our beautiful White House. Actually, it is a great honor for America!!!' The leaders will begin to arrive at the White House at 12noon EST (17:00 BST). Trump and Zelensky are due to meet at 1pm ET, with a bilateral discussion to take place at 1.15pm. At 13:15, Trump will meet and greet the rest of the European leaders. By 3.00pm, Trump is due to host multilateral meetings with leaders from the EU. Details of when the meeting is expected to end has not been revealed yet. Neil Melvin, director of international security at the London-based Royal United Services Institute, said European leaders are trying to 'shape this fast-evolving agenda.' The meeting comes days after Trump met with Putin for a two-and-a-half hour discussion in Alaska about the ongoing conflict. Afterwards, Trump admitted he and Putin could not strike a deal on the crisis, but insisted: 'We had an extremely productive meeting, and many points were agreed to. 'We didn't get there, but we have a very good chance of getting there.' After the Alaska summit, the idea of a ceasefire appears all-but-abandoned, with the narrative shifting toward Putin's agenda of ensuring Ukraine does not join NATO or even the EU. Diplomatic sources said that Friday's summit paved the way for a deal in which Ukraine would be expected to surrender large swathes of the Donbas region in the east of the country, including areas currently controlled by Kyiv. While Russia has taken most of Luhansk, it only holds about 75 per cent of Donetsk, which is both vital for the nation's defence and also home to many of the rare-earth minerals Putin craves. He has also taken about 74 per cent of the neighbouring Zaporizhzhia and Kherson regions. Zelensky earlier pushed back against Trump's assertion — which aligned with Putin's preference — that the two sides should negotiate a complete end to the war, rather than first securing a ceasefire. This would allow Putin to continue his deadly strikes until a full peace deal was achieved. Zelensky said a ceasefire would provide breathing room to review Putin's demands. 'It's impossible to do this under the pressure of weapons,' he said. 'Putin does not want to stop the killing, but he must do it.' Despite the push for peace, Putin has been persistent in his attacks on Ukraine On Sunday, Trump's former vice-president Mike Pence insisted Putin was 'the bad guy' and should be treated as such during negotiations.] He said he knew Trump liked to use a 'velvet glove' style in dealing with dictators, but added: 'The hammer needs to come and it needs to come immediately.' Pence told CNN that as well as meeting Zelensky, Trump should call for another sanctions bill against Russia to be passed 'immediately' in the Senate. He also gave Trump credit for pursuing his earlier ceasefire deal despite 'many voices in and around the administration that would have cut Ukraine loose months ago.'
