Trump’s trade war could create an ‘economic nightmare’ for Britain and Europe
Donald Trump’s re-election could trigger a trade war that would become an “economic nightmare” for Britain and Europe, analysts warned last night.
He has pledged to raise import tariffs during his second term as US president, a move experts say could push the euro zone into recession.
During his campaign, Trump called tariffs “the most beautiful word in the world” and said he would impose a 10 percent tax on imports from all countries and a 60 percent tax on goods from China.
Analysts at ING bank said yesterday that Trump’s re-election was “Europe’s worst economic nightmare come true,” and warned investors: “A looming new trade war could push the eurozone economy from sluggish growth into an outright recession.”
Major concerns: Donald Trump’s re-election could spark a trade war that would be an ‘economic nightmare’ for Britain and Europe, analysts warned last night
Analysts at Goldman Sachs warned that “renewed trade tensions are likely to weigh significantly on growth,” while Nomura’s Andrzej Szczepaniak said: “Trump winning means tariffs, which will hurt growth in Europe.”
The already struggling German economy is expected to be hit particularly hard by tariffs on European cars.
The Kiel Institute for the World Economy said Trump’s victory was the “toughest economic moment” for the country since the end of World War II.
It comes after a report from a leading think tank found that UK economic growth could more than halve next year if Trump implements his promised tariffs.
Britain’s National Institute for Economic and Social Research predicts output will slow to 0.4 percent next year, down from a previous estimate of 1.2 percent.
“Because Britain is a small, open economy, Britain is one of the countries most affected by higher trade tariffs,” the report said.
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