Trump’s trade war could cause an ‘economic nightmare’ for the UK and Europe

Donald Trump’s re-election could start a trade war that would be an “economic nightmare” for Britain and Europe, analysts warned last night.

He has pledged to raise tariffs on imports in his second term as US president, a move that experts say could tip the eurozone into recession.

During his campaign, Trump called tariffs “the most beautiful word in the world” and said he would impose a 10 percent tax on imports from all countries and a 60 percent tax on goods from China.

Analysts at ING bank yesterday said Trump’s re-election was “Europe’s worst economic nightmare come true”, and warned investors: “A looming new trade war could push the eurozone economy out of sluggish growth.” to a total recession.

Goldman Sachs analysts warned that “renewed trade tensions will likely weigh materially on growth,” while Nomura’s Andrzej Szczepaniak said: “Trump’s victory means tariffs, which will negatively affect growth in Europe.”

The already weakened German economy is expected to be particularly hard hit by European car taxes.

The Kiel Institute for the World Economy said Trump’s victory was the “most difficult economic moment” for the country since the end of World War II.

It comes after a report from a leading think tank showed the UK’s economic growth could be more than halved next year if Trump implements promised tariffs.

Britain’s National Institute for Economic and Social Research forecast output would slow to 0.4 percent next year, down from a previous estimate of 1.2 percent.

“Because the UK is a small, open economy, it is one of the hardest hit by the increase in trade tariffs,” he said.