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

Future Retirement Success

Business

US tariffs threaten to tip UK, Europe and Asia into recession, warn economists

by April 3, 2025
April 3, 2025
US tariffs threaten to tip UK, Europe and Asia into recession, warn economists

A sweeping escalation in US trade tariffs has sent shockwaves through the global economy, with economists warning that the UK, the European Union, and a number of Asian economies could slide into recession this year.

President Trump has raised tariffs on imports from 60 countries, lifting the average US tariff rate from 2.5 per cent to 25.1 per cent — the highest level in more than a century, according to investment bank UBS. The unprecedented move has prompted analysts to drastically revise down global growth forecasts and raise inflation projections.

Barclays said the UK, which faces a baseline 10 per cent tariff on all exports to the US, could see a 1.5 percentage point hit to GDP in 2025. That would tip the economy into recession, derailing an already fragile recovery. The Office for Budget Responsibility had previously forecast 1 per cent growth this year.

While the UK avoided the steepest tariffs — such as the 50 to 70 per cent levies applied to China — the cumulative effect of targeted duties on cars, steel, and broader global supply chain disruption is expected to weigh heavily on British exports and business confidence.

The EU has been hit with additional 20 per cent tariffs, which Barclays estimates could wipe out 1.9 percentage points of GDP growth, while neighbouring Asian economies such as Vietnam and Cambodia have been caught in the crossfire with high punitive levies.

Credit ratings agency Fitch warned that if tariffs remain in place for an extended period, “many countries will likely end up in a recession. You can throw most forecasts out the door.”

China, the biggest single target, is now facing a total US tariff burden of around 70 per cent, with growth projected to fall by up to 1 percentage point, according to Capital Economics. The market is closely watching how Beijing responds, with analysts anticipating fresh stimulus measures to soften the blow.

For the US itself, the effects will be mixed. While the new tariffs are likely to lift inflation — with Oxford Economics forecasting core inflation to approach 4 per cent this year — they are also expected to dampen growth, reducing it from 2 per cent to just 1 per cent of GDP.

Analysts at Nomura now expect the Federal Reserve to make three interest rate cuts within the next 12 months, a reversal from previous expectations of no cuts until mid-2026.

Tariffs, as border taxes, are typically passed on to consumers, raising prices and eroding real incomes. As inflation rises and trade volumes shrink, global supply chains are bracing for a prolonged period of disruption.

For businesses in the UK, particularly exporters in the manufacturing and automotive sectors, the new trade environment presents a major risk. Economists warn that reliance on US markets may now require urgent reassessment, as companies face the twin pressures of reduced competitiveness and falling demand.

Read more:
US tariffs threaten to tip UK, Europe and Asia into recession, warn economists

0
FacebookTwitterGoogle +Pinterest
previous post
The Triumph of Fear—Excerpt from Cato Scholar’s New Book on Domestic Surveillance and Political Repression
next post
I spent 36 years in prison for a crime I didn’t do. Trump’s early pardons are the right idea

You may also like

Trump threatens 200% tariffs on European wine over...

March 13, 2025

Over 450 directors banned for pandemic loans misuse

April 19, 2023

Big Motoring World Warranty Review: Top Tips for...

April 5, 2025

LearningCog: Insight Discovery, Leadership & Management

March 10, 2023

Why Choose a Non-GamStop Casino?

April 3, 2025

The Business Impact of Offshore Casinos on the...

March 12, 2025

UK Retail sector hopes to get Royal boost...

April 12, 2023

China retaliates against EU tariffs with brandy tax

October 9, 2024

UK economy growth prospects gloomier than predictions leaving...

January 25, 2023

Alibaba.com backs athlete365 business accelerator to empower olympic...

December 2, 2024

    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

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • 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