Rachel Reeves has insisted that it is “too early” to start downgrading Britain’s growth prospects after economists warned that Donald Trump’s pledge to impose new tariffs on global imports would cost the economy £21.5 billion next year.
The United States is the UK’s largest trading partner and last year Britain exported £60 billion of goods across the Atlantic which would be hit by the additional taxes.
Trump has pledged to impose 10 per cent tariffs on all products imported into the US and 60 per cent tariffs on imports from China in a move that threatens to trigger a global trade war, pushing up inflation and damaging economic growth.
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The National Institute of