Britain Faces Economic Squeeze Amid U.S. Tariff Shock

Britain's economy experienced a sharp decline in April 2025 due to the impact of U.S. tariffs and the end of a property tax break. The GDP shrank by 0.3%, with significant drops in exports to the U.S. and the EU. The Bank of England revised its growth forecasts accordingly.

Britain's economic momentum hit a snag in April as it encountered unexpected challenges stemming from U.S. tariffs and the conclusion of a favorable property tax break, according to official data released Thursday.

The country's GDP contracted by a sizable 0.3% compared to March, making it the steepest monthly decline since October 2023. This surpassed a prior forecast of a 0.1% dip and reversed a 0.2% growth seen in March.

Economic factors such as a downturn in real estate and legal activities significantly contributed to this contraction. Simultaneously, car manufacturers reported lower production and exports to both the U.S. and EU markets.