UK economy contracts as Trump's trade tariffs hit exports and stifles growth

THE economy saw the biggest monthly contraction for a year and a half in April as manufacturing activity pulled back sharply amid a record drop in exports to the US following President Donald Trump's tariff hikes.

- by HOLLY WILLIAMS

Official figures showed gross domestic product (GDP) fell by 0.3% in April, compared with growth of 0.2% the previous month, and marking the biggest contraction since October 2023.

It was also worse than the 0.1% contraction expected by most economists.

The Office for National Statistics (ONS) said output in Britain’s manufacturing sector dropped by 0.6% in April, having surged earlier in the year as US importers stocked up ahead of Mr Trump's tariff rises, which came into effect at the start of April.

Exports to America fell at the fastest pace on record, down £2billion in April led by machinery and transport, including cars, according to separate trade figures from the ONS.