Shadow Home Secretary Chris Philp has launched a scathing attack on Labour, claiming the government "took the economy to the brink of recession" before Donald Trump's new tariffs have even taken effect.
The criticism comes as the US President announced sweeping new tariffs on imports to America and the UK was hit with a 10 per cent charge.
Speaking to GB News, Chris Philp said: "This Labour government has taken the economy, even before these tariffs, to the brink of a recession already because of their swingeing tax increases.
"They're also massively increasing regulations on employment makes it harder to employ people. They're giving more power to trade unions, which will make it easier to strike.
Chris Philp blasted Labour for the move
GB NEWS
"They're getting rid of all of those laws that Margaret Thatcher passed in the 1980s to make strikes harder.
"They're doing all of those terrible things. They're making it harder for landlords as well.
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"All of that is going to push down economic growth and destroy jobs. So yes, I'm worried about the possibility of a recession."
He added on tariffs: "This is a Brexit benefit. If we were still in the European Union's customs union, then we would be facing 20 per cent tariffs right now.
"I think the government needs to get on with doing a proper tariff free trade deal with the USA."
Trump confirmed that from 5am on Thursday a 25 per cent tariff would be imposed on all foreign cars imported to the US.
Experts fear this move could cost 25,000 jobs in the British car industry.
He also indicated tariffs of 10 per cent would apply to other products from the UK - the same level as the global "baseline" he was setting for countries around the world.
The tariffs, dubbed "liberation day" by the White House, are expected to impact £60billion worth of UK exports, including cars and pharmaceuticals.
Other blocs with higher tariffs on US goods were hit with tougher import taxes, including 20 per cent for the European Union.
Experts fear this move could cost 25,000 jobs in the British car industry
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Trump's spokeswoman has confirmed there will be no grace period before the tariffs are implemented.
She suggested foreign companies could relocate to the US to avoid penalties, while indicating Trump remains open to negotiations.
The president himself predicted that world leaders would soon be calling him to request exemptions from the tariffs.
Prime Minister Sir Keir Starmer has ruled out retaliatory measures against the US, emphasising a "calm and pragmatic" approach to the tariff situation.