UK Times says “Trump’s tariffs are set to drive down UK economic growth”, circa 50% cut

UK Times, and other media outlets, with the latest from EY Item Club, which is sponsored by the big four accountancy firm EY,

EY’s forecast:

• now expects UK gross domestic product (GDP) to grow by 0.8% in 2025, down from their projection of 1% in February
• cut its 2026 forecast from 1.6% to 0.9%, citing longer-term effects hitting the UK

EY cite:

• Roughly 16% of UK goods exports are sent to the US, meaning the “baseline” US import tariffs — 10% for most products and 25% for cars, steel, and aluminium — will hurt UK growth by reducing demand for British goods.

• A larger blow to growth will likely stem from the indirect effects of the new tariffs, which could make British consumers even more hesitant to spend on major purchases.

• Businesses are also expected to scale back investment over the next two years in response to the more challenging environment.

EY cite UK firms preparing for potential supply chain disruption from tariffs by targeting new export markets in Asia, Africa and Australia.

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