UK economy will not benefit from US tariff pause — Bloomberg

Bloomberg reports that the economic situation in the UK will not improve after Donald Trump’s surprise tariff pause. The US President announced temporarily bringing rates for most countries down to 10%. 

Thus, Britain, whose goods were initially subject to a 10% levy, lost its advantage over other US trading partners. Additionally, Trump’s chaotic policy is to deter investment in the UK, the news agency says. 

At the same time, the pause in raising US import duties may keep the Bank of England from cutting rates on May 8, Bloomberg reports.

Michael Saunders, former central bank rate-setter, believes the UK could face slower GDP growth and lower inflation rates. Deutsche Bank economists warn of a possible recession in the country caused by trade uncertainty. 

Besides, experts project the government will launch an emergency loan program with 10 billion pounds ($13.1 billion) of support for British companies affected by the duties. Chancellor of the Exchequer Rachel Reeves may also opt out of the new fiscal rules.