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.
The Bank of England expects only modest improvement, with growth reaching just 1.5 per cent in 2026 and 2027.
This 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.
“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.”
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Labour backbench rebellion intensifies over ‘cruel’ benefit cuts that could push 50,000 more children into poverty
Rachel Reeves delivered the Spring Statement on Wednesday
PA
Labour faces a fierce backbench rebellion after a government assessment revealed that welfare cuts could push 250,000 more people— including 50,000 children— into poverty.
MPs confronted Chancellor Rachel Reeves in the Commons following her Spring Statement, condemning the cuts as “cruel” and demanding a U-turn, while urging higher taxes on the wealthy.
Reeves argues that her reforms will save £4.8 billion after the economic downturn caused by her October budget. However, an internal Department for Work and Pensions (DWP) assessment found that 3.2 million families will lose an average of £1,720 per year by April 2030.
Although 3.8 million families will see a £420 annual gain, the report also warns that 150,000 family carers could collectively lose up to £500 million in payments.
In the Commons, Reeves defended the cuts, insisting the welfare system is “broken” and arguing that without reform, “we are writing off an entire generation” reliant on sickness benefits.
RECAP: Donald Trump confirms 25% tariffs on ALL cars not made in US
The President announced the tariffs on Wednesday
GETTY
Donald Trump has confirmed that he will impose tariffs of 25 per cent on all cars not made in the US on April 2.
The announcement came after White House press secretary Karoline Leavitt hinted at the US President announcing tariffs on auto imports earlier this afternoon.
“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump said.
