What could Trump's tariff plans mean for future trade?

Donald Trump's election has sparked fears of a global trade war after his campaign pledge to impose levies of 10 to 20 per cent on all goods imported from US trading partners, and up to 60 per cent and 100 per cent for China and Mexico.

- MILLIE COOKE

Mr Trump’s first term in office saw him clash with China, which had growth impacts across the world’s more advanced economies. But this time around, there is the possibility of a renewed global trade war on an even bigger scale following increasingly protectionist rhetoric on the campaign trail.

How could tariffs impact the UK?

As well as being the world’s largest economy, the US is the UK’s largest export market for goods and services. If the presidentelect were to impose 10 per cent tariffs on all goods imported from the UK, it’s very likely this would negatively impact economic growth.

New analysis from the University of Sussex’s Centre for Inclusive Trade Policy calculated Britain could face a £22bn hit to its exports if a blanket 20 per cent tariff was imposed on all imports into the US, with UK exports to the world falling by more than 2.6 per cent.