Donald Trump's proposed global tariffs could wipe more than £30billion from Britain's GDP in a blow to Rachel Reeves economic plan, the Office for Budget Responsibility has warned.
The Budget watchdog's latest report indicates that escalating trade disputes could reduce UK GDP by a peak of one per cent.
With the UK's GDP currently standing at approximately £3.4trillion, such a reduction would amount to more than £30billion.
Forecasts released alongside the Chancellor's spring statement on Wednesday are set to halve projected UK GDP growth in 2025 to around one per cent.
Donald Trump's proposed global tariffs could wipe more than £30billion from Britain's GDP in a blow to Rachel Reeves economic plan, the Office for Budget Responsibility has warned
GB News
The Bank of England expects only modest improvement, with growth reaching just 1.5 per cent in 2026 and 2027.
Reeves told GB News: "Global growth has been revised down, and I think people can see around us that the world is changing and Britain is not immune from some of those pressures.
"But in every other year, the OBR have revised up their growth forecast and say that by the end of the Parliament, the economy will be bigger than they previously envisaged.
"So if you take that in the round, that is an economy that is growing.
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"The economy is forecast still to grow more this year than it did last year, and my satisfied with the numbers?
"No, of course I'm not. I want to go further and far faster to grow the economy."
It comes as the US president has confirmed plans to impose tariffs of 25 per cent on all cars not made in the US on April 2.
He said: "We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry.
The Bank of England expects only modest improvement, with growth reaching just 1.5 per cent in 2026 and 2027
GB News
"What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States.
"If they’re made in the United States, there’s absolutely no tariff."
The new vehicle tariffs will come into effect from April 2, although the measures for car parts will start in May.
The US President said it would create "tremendous growth" for the US car market.
