By GB News (Politics) | Created at 2024-11-07 00:41:35 | Updated at 2024-11-07 02:39:56
1 hour ago
Rachel Reeves has pleaded with Donald Trump not to impose trade tariffs amid fears of them negatively affecting UK growth.
Donald Trump's proposed trade tariffs could cost the UK economy £21.5billion next year, according to new analysis from the National Institute of Economic and Social Research.
The president-elect's pledge to impose 10 per cent tariffs on all global imports, rising to 60 per cent for China, threatens to deliver a significant blow to Britain's economic growth.
Economists calculate the impact would amount to a 0.8 per cent drop in UK GDP growth in 2024.
Chancellor Rachel Reeves has pledged to make "strong representations" to the president-elect about the damage a protectionist regime would inflict
PA
Donald Trump's proposed trade tariffs could cost the UK economy £21.5billion next year
Reuters
The Bank of England could be forced to maintain higher interest rates, subsequently increasing government borrowing costs and hampering both public and private sector investment.
Chancellor Rachel Reeves has pledged to make "strong representations" to the president-elect about the damage a protectionist regime would inflict.
Speaking to the Treasury Committee, Reeves said: "We're not just a passive actor in this.
"It's a trade relationship with the United States and we will make strong representations about the importance of free and open trade."
The Chancellor emphasised the mutual benefits of maintaining open trade relations, stating: "The US also benefit from those that access to free and open trade with us and other countries around the world, and it's what makes us richer as societies."
Despite the concerns, Reeves maintained optimism about Britain's influence, telling MPs: "I am optimistic about our ability to shape the global economic agenda, as we have under successive governments."
She noted there were "another couple of months before the inauguration" to begin crucial trade discussions.
