Chancellor “flying blind” into a Trump trade war that would leave her plans in tatters

EMBARGO: IMMEDIATE RELEASE

A Donald Trump trade war could hit GDP by 1% by 2029/30, the OBR has warned, leaving the Chancellor’s plans “in tatters.” The OBR said that if there are 20 percentage point rises in tariffs between the US and the rest of the world, this could reduce UK GDP by 1%. 

Liberal Democrat Treasury spokesperson, Daisy Cooper MP said:

“Donald Trump is wreaking havoc on the world economy with his destructive tariffs. The Chancellor said she would seek economic stability, but there is no economic stability to be found in relying on the whims of this chaotic White House.

“Trump’s tariffs risk leaving the Chancellor’s plans in tatters, wiping out what little growth was left after forecasts were slashed. But this government is flying blind instead of coming up with a proper plan on how to protect our economy from this threat.

“Simply sitting back and hoping is not a strategy. It is time for the Government to start talks on a new trade deal with the EU that provides stability for businesses, boosts growth and allows us to deal with Trump from a position of strength.”

ENDS

Notes to Editors:

OBR link here. (page 5).