US TARIFFS TO PUSH UK EUROPE AND ASIA INTO RECESSION

Economists caution that the recent increase in US tariffs could plunge the UK European Union and various Asian economies into recession. The White House has raised average tariffs from 2.5% to over 25% the highest level seen since the 1920s. This monumental shift has led analysts to revise their forecasts for global growth and inflation significantly.

As the UK faces a growth hit estimated at 1.5 percentage points the economy is already showing signs of weakness. Official reports suggest that prior to the tariff increases the UK was on track to grow by approximately 1% of GDP this year. However the ramifications of these new tariffs coupled with existing levies on crucial sectors are expected to cause further economic strain.

Barclays has noted that while the UK has avoided the highest tariff rates there remains uncertainty due to tariffs imposed on imports such as cars and steel. The broader impact on business confidence alongside ongoing disruptions in Europe could hinder economic recovery.

Economists are wary of the implications for inflation as tariffs act as border taxes on imports usually passed down to consumers. A significant rise in prices is anticipated thereby fuelling inflationary pressures and forcing changes in monetary policy.

The situation in China is particularly concerning where total tariff rates from the US may reach as high as 70%. This has triggered speculation about potential measures the Chinese government might introduce to mitigate the negative impact on their economy;

Looking ahead the economic landscape appears increasingly volatile with many experts suggesting this could be just the beginning of a wider global recession as countries grapple with the fallout from heightened tariffs and trade tensions.