Donald Trump's tariffs are set to drive down UK economic growth
Disruption to global trade and market uncertainty from President Trump's tariff wars will drive down UK economic growth this year and next, according to new forecasts.
The economy is predicted to grow 0.8 per cent this year, down from the 1 per cent forecast in February, before Trump unveiled sweeping tariffs, and the outlook for 2026 has also been cut to 0.9 per cent from 1.6 per cent by EY Item Club, a forecaster.
Businesses and consumers are expected to become more cautious, and reduce their spending, during the second and third quarters of this year, after Trump imposed tariffs of 10 per cent on all British exports to the United States and 25 per cent on steel, aluminium and cars.
The forecasts are weaker
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