Some economists have warned that Trump’s proposals on trade will come as a ‘shock’ to countries around the world, including the eurozone and UK economies.
President Donald Trump has said that if he becomes the next US president, he will significantly increase trade tariffs, especially against China.
Ahmet Kaya, chief economist at the National Institute for Economic and Social Research (Niesr), also said the UK could be “one of the countries most affected” by such plans.
The UK’s economic growth rate is expected to slow from 1.2% to 0.4% in 2025.
“President Trump’s global trade policies are particularly unsettling in Asia, given his strong protectionist platform that has promised more aggressive tariffs on imports into the United States,” said Katrina Ell, director of economic research at Moody’s Analytics. “There is,” he said.
Trump’s more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan from potential attacks from China.
The self-governing island is a major producer of computer chips essential to the technologies that drive the global economy.
Investors also have other key issues to focus on this week.
On Thursday, the US Federal Reserve is expected to announce its latest decision on interest rates.
Central Bank Governor Jerome Powell’s comments will be closely watched around the world.
