The US has dramatically escalated its trade tariffs, with President Trump raising them on imports from 60 countries, resulting in an average tariff rate of 25.1%. This unprecedented increase is expected to push several economies, including the UK and EU, towards recession. The UK faces a potential GDP hit of 1.5 points by 2025 due to these tariffs. Analysts predict these trade tensions may force China to implement stimulus measures while the overall global growth outlook continues to decline, raising concerns of widespread economic instability.
President Trump has raised tariffs on imports from 60 countries, lifting the average US tariff rate from 2.5 per cent to 25.1 per cent.
Barclays said the UK, which faces a baseline 10 per cent tariff on all exports to the US, could see a 1.5 percentage point hit to GDP in 2025.
Credit ratings agency Fitch warned that if tariffs remain in place for an extended period, 'many countries will likely end up in a recession.'
China, the biggest single target, is now facing a total US tariff burden of around 70 per cent, with growth projected to fall by up to 1 percentage point.
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