President Donald Trump has reignited global trade tensions after announcing a fresh wave of tariffs on European exports, a move that businesses warn could disrupt supply chains, dent confidence and push up inflation in the United States.
Under the new plan, a blanket 10 per cent tariff will be imposed on “all or any goods” exported to the US from the UK, Denmark and other European countries from February 1. Trump has also threatened to raise those duties to 25 per cent from June 1 unless negotiations succeed over the US purchasing Greenland, a demand that has already been firmly rejected by Copenhagen and its allies.
Market analysts say the policy represents a sharp escalation in Trump’s confrontational trade strategy and comes at a delicate moment for the UK economy, which has only just returned to modest growth.
Susannah Streeter, chief investment strategist at Wealth Club, said the move had injected renewed uncertainty into global markets. She described the announcement as “migraine-inducing” for both politicians and companies that have already endured months of tariff brinkmanship.
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