Trump's announcement of new tariffs on imports from Canada, Mexico, and China raises concerns for the UK economy, particularly given its dependence on trade. A slowdown in global trade could lead to lower economic growth and increased inflation due to rising costs of imports. Additionally, if US interest rates rise in response to anticipated inflation, UK government borrowing could become more expensive, resulting in potential spending cuts. The FTSE 100 may also face declines as market sentiment wanes during trade disputes.
Donald Trump has announced new US tariffs on imports from Canada, Mexico, and China, and hinted that the European Union could be next.
Even if UK exports to the US are not immediately targeted, higher tariffs on close economic partners-such as the EU-could discourage international commerce more broadly.
If global trade weakens, British businesses in export-oriented sectors could see falling demand.
Market sentiment frequently suffers during trade disputes, suggesting the FTSE 100 could drop when markets open on Monday.
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