By GB News (Politics) | Created at 2025-03-31 18:57:07 | Updated at 2025-04-02 07:36:07
1 day ago
Donald Trump's "Liberation Day" tariffs will hit Britain, Downing Street has admitted - just as fears of a recession soared to a two-year high.
The Prime Minister's official spokesman confirmed this afternoon that No10 "expects the UK to be impacted" by the levies, despite a rosy readout of a UK-US "economic prosperity deal" call yesterday evening.
"When it comes to tariffs, the Prime Minister has been clear he will always act in the national interest, and we've been actively preparing for all eventualities ahead of the expected announcements from President Trump this week, which we'd expect the UK to be impacted by alongside other countries," Downing Street said.
"Our trade teams are continuing to have constructive discussions to agree a UK-US economic prosperity deal.
The Prime Minister's official spokesman confirmed this afternoon that No10 'expects the UK to be impacted' by the levies
PA
Donald Trump's 'Liberation Day' tariffs will hit Britain, Downing Street has admitted
PA
Adding to concerns, the Office for Budget Responsibility (OBR) has halved its 2025 growth forecast, now expecting just one per cent GDP growth, down from its earlier two per cent projection.
This downward revision further weakens economic confidence and raises fresh concerns about the UK’s recovery.
Trump has imposed a series of tariffs on goods from other countries, claiming the measures will support American manufacturers and protect jobs, despite concerns that they could lead to higher prices for consumers.
The tariffs on vehicle imports to the US will begin on April 3, with taxes on parts expected to start in May or later.
Trump has indicated the levies will target all countries rather than a small group with trade imbalances with the US - though if British negotiators make their case, the President could still hand the UK a much-hailed "trade lane".
Barclays equity strategist Emmanuel Cau noted: "Tariff risk has been well telegraphed and is largely priced in corners of the market. So Liberation Day may not be a complete shocker. However, no one wins from trade war, and clouds are gathering over the global growth outlook".
Last week, the PM said that the UK would not be “jumping into” one with the US, adding the Government was carrying out “intense negotiations” to avoid tariffs and would be “pragmatic and clear-eyes” in its response.
The independent Office for Budget Responsibility has cautioned that a retaliatory trade war would significantly harm economic growth, potentially erasing the surplus the chancellor has set aside to adhere to her self-imposed fiscal rules.
