Trump's Tariff Threats: A Looming Challenge for the British Economy

U.S. President Donald Trump's proposed tariffs pose a significant threat to the British economy, according to the UK's fiscal watchdog. Slow growth, heavy debt, and potential global trade wars could further weaken the economy. Finance Minister Rachel Reeves faces difficult fiscal decisions amid political and economic pressures.

U.S. President Donald Trump is seen as one of the greatest threats to the British economy, the UK's fiscal watchdog reported on Wednesday, citing concerns over proposed tariffs. Finance Minister Rachel Reeves has introduced unpopular cuts, aiming to stabilize the economy after previous market disruptions.

The independent watchdog warned that a global trade war could impact economic output, while anticipated increases in Bank of England interest rates could threaten the UK's fiscal stability. Trump's reciprocal tariff rates, set for April 2, could suppress UK economic activity.

The UK government is attempting to forge a tech-based trade deal with the U.S. to mitigate potential tariff impacts. Despite political and business pressure, Reeves remains committed to rebuilding public finances, though economists fear further tax hikes may be inevitable.

(With inputs from agencies.)