Trump taxes might diminish UK economy by roughly 1 percent
Date
11/19/2024 2:44:00 AM
(MENAFN) US President-elect Donald Trump's trade laws might have a significant shock to the UK economy, with economists expecting a roughly 1 percent contraction in GDP if strict taxes are enforced.
The Centre for Economics and Business Research (CEBR) on Monday expected that the UK Economy might experiece substantial fallout if the US implements a protectionist stance under Trump’s leadership.
The think tank’s analysis proposes that a 20 percent tax on all US imports, joined with a 60 percent tax on Chinese products, will create international ripples, leaving the UK particularly at risk.
This expectation adopts no retaliatory measures from other countries.
The CEBR also warns that the international energy market might be more unstable. Retaliatory actions to US taxes could push up energy prices, causing greater costs for businesses and households in the UK.
Throughout Trump’s initial term, the price differential between Brent crude and WTI crude increased 118 percent, driven by resistance to US energy shipments, the CEBR stated.
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