Trump’s victory in the US election could lead to a downturn in the British economy: Reuters
The British economy may experience a significant slowdown if Donald Trump wins the US presidential election and imposes large-scale import duties. The National Institute of Economic and Social Research (NIESR) reports on this possibility, Reuters writes.
In its new report, this leading British think tank notes that UK economic growth could fall to 1.1% in 2026, with similar figures expected until 2030.
NIESR Chief Economist Ahmet Kaya emphasises that the country’s economy may suffer even more if the US imposes the duties announced by Trump. In particular, duties of 60% on Chinese imports and 10% on imports from other countries could lead to a global economic slowdown.
According to Kai, the Bank of England will probably be forced to raise interest rates to counteract the rise in inflation caused by the increase in US duties. Inflation in the UK is expected to rise by 2-3% over the next two years.
Trump himself called tariffs ‘the most beautiful word in the world’, saying that his plan would boost US manufacturing, create jobs, increase revenues and bring trillions of dollars to the state budget over the next decade.
The slowdown in economic growth in the UK could pose a challenge for Prime Minister Keir Starmer, who has promised to make the UK economy the most dynamic among the Group of Seven countries.
