Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

US-China trade war risks wiping £8.5bn from UK exports, warns Allianz Trade

by November 15, 2024
November 15, 2024
US-China trade war risks wiping £8.5bn from UK exports, warns Allianz Trade

UK export growth could shrink by up to £8.5 billion over two years if a full-scale US-China trade war erupts, Allianz Trade has warned.

A protracted trade conflict between the world’s two largest economies could severely impact the UK’s manufacturing sector, according to Allianz Trade, the trade credit division of the global insurance and investment manager Allianz, formerly known as Euler Hermes.

The organisation cautioned that an escalation of US tariffs on China to 60 per cent for all goods—both critical and non-critical—and 10 per cent for imports from the rest of the world could result in significant economic fallout. However, Allianz Trade described such a scenario as “unlikely,” highlighting the detrimental effects on the US economy itself, including a projected 1.2 percentage point hit to GDP growth and a 0.6 percentage point rise in inflation by 2026.

Global trade would also feel the pinch, with growth potentially slowing by 2.4 percentage points under the maximum-tariff scenario.

A more moderate tariff increase—raising existing US tariffs on Chinese imports from 13 per cent to 25 per cent and introducing smaller hikes of 5 per cent for imports from other countries (excluding Mexico and Canada)—could still hinder UK export growth by approximately £2.2 billion over two years. It would also reduce global trade growth by 0.6 percentage points, Allianz Trade noted.

Capital Economics offered a more optimistic view, arguing that the UK’s direct exposure to potential Trump-era tariffs would be limited. Unlike China, Mexico, or the European Union, the UK does not run a significant trade surplus in goods with the US. Trade in goods between the two nations is broadly balanced, with the UK’s services exports—twice the value of its goods exports—unlikely to be affected by tariffs.

Capital Economics estimated that a hypothetical 10 per cent tariff on all UK goods exported to the US would result in a negligible impact on UK GDP, ranging from -0.1 per cent to +0.1 per cent. This is due to the likely exemption of services exports and the offsetting effect of a weaker pound, which would make UK goods more competitively priced in US markets.

Read more:
US-China trade war risks wiping £8.5bn from UK exports, warns Allianz Trade

0
FacebookTwitterGoogle +Pinterest
previous post
Trump goes full MAGA as he picks allies and loyalists to fill his second administration
next post
How a Trading Challenge Can Help You Earn from Home

You may also like

Parliament needs to oppose DWP Bank Account Snooping...

April 17, 2024

UK house prices rise for third consecutive month,...

October 7, 2024

UK government debt sell-off accelerates as borrowing costs...

January 9, 2025

Trump re-election predicted to boost UK with $33...

November 29, 2024

Royal Mail staff to stage 24-hour strike on...

February 3, 2023

Britain’s exporters lack expertise, survey reveals

September 9, 2024

Set you own salary as gaming’s new boss

November 17, 2024

Twitter’s ad revenue has slumped by half

July 18, 2023

Developing leadership talent through extreme outdoor team building

July 17, 2024

Bernie Ecclestone’s Formula One car collection sells for...

March 8, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved