Trump tariffs will harm UK growth in 2026, says IMF

Trade tensions from Donald Trump’s sweeping global tariffs will dampen the UK’s economic growth next year, the International Monetary Fund IMF) has warned, despite upgrading this year’s growth forecast for Britain.

- HENRY SAKER-CLARK MILLIE COOKE

The IMF said the UK is experiencing an “economic recovery”, with GDP expected to rise by 1.2 per cent this year, a step up from the 1.1 per cent growth it predicted in April.

Meanwhile, it maintained its projection that the UK economy will expand by 1.4 per cent in 2026. But IMF economists said this will come despite global trade tensions wiping 0.3 percentage points off growth for the year.

It comes despite Britain striking a historic trade agreement with the US last month that will slash the bulk of Mr Trump’s tariffs.

The deal saw US tariffs on cars immediately cut from 27.5 to 10 per cent for up to 100,000 vehicles – almost the total number exported last year. Levies on steel and aluminium will be reduced to zero, however, a general 10 per cent tariff for other goods will remain.