Trump’s tariff in Trump is common to Rashil Reeves

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The Rachel Reeves Chamber of Mandor was placed on public financial affairs in Stark on Thursday after Donald Trump announced 25 percent of cars on external cars.

Within hours of the UK consultant, it was announced Spring statementThe possibility of an escalating trade war constitutes a new threat to 9.9 billion pounds from the head of the head that gave it itself against many of the risks facing the economy.

Richard Hughes, head of the independent budget responsibility office, has warned that a complete global trade war could eliminate this area, while some economists said that the chancellor may have to raise taxes in its autumn budget.

“This represents the crystallization of one of the risks we highlighted about our central expectations,” Hughes said on Thursday.

Reeves said that she hopes that the American president will be persuaded to exempt Britain from Definitions Before they were presented on April 2, saying: “We are in extensive negotiations with our counterparts in the United States on cars and steel and every other type of tariff.”

She said that the United States and the United Kingdom had a widely balanced trade relationship and also indicated that Britain would not be divided immediately. “We don’t want to enter into a commercial war,” she told the BBC.

Hughes said that in the worst scenario of the worst cases, the United States imposed an additional offer to 20 percentage points around the world and the revenge of the United Kingdom, “We will lose about 1 percent of the gross domestic product at its peak.”

He said this will significantly affect growth next year – which OBR expects will reach 1.9 percent – and will reduce the average growth of 0.75 percent.

“This type of strike for the economy will also be a great success to revenue,” he said. “It will have effects on spending due to its effect on inflation.

“This type of shock will be enough to wipe 10 billion pounds from the head hall allocated by Rachel Reeves.”

Hughes warned that the Reeves room was “a small part of the risk and shock group that could reach the UK economy in the next five years.” He added: “It is a very small margin to allocate it.”

He said that in addition to the definitions, there were risks to local productivity expectations in the United Kingdom, a warning to the consultant that OBR may re -evaluate his optimistic evaluation of Britain’s growth capabilities.

“There is a lot of uncertainty about modern numbers and what it means for the growth and production of workers in the United Kingdom,” he said. “If growth is only 0.1 percent less annually over the next five years, it will be sufficient to eliminate the head room.”

The United States is the second largest export destination for cars in the UK, representing 17 percent of industry exports after the European Union, which represents 54 percent, according to the Association of auto manufacturers and merchants.

The export of the main goods in the United Kingdom to the United States is machinery and transport equipment, which consists in 2023 from 27.2 billion pounds from its sales to America, or about 45 percent of the total exported goods.

Within this, car exports were worth 6.4 billion pounds, according to the National Statistics Office.

While the United Kingdom exported 60.4 billion pounds from goods to the United States in 2023, it sold services worth 126.3 billion pounds in the same year, according to the latest numbers available from ONS.

The brands of luxury cars in the UK, such as Jaguar Land Rover, Aston Martin, and Bentley, will be struck by definitions because they do not produce any cars in the United States.

Ian Henry, a car production expert who runs automatic analysis consulting, said some luxury brands such as Rolls -Royce and Bentley may have more flexibility to accommodate the higher definitions by cutting margins at traders or by trying to reduce the cost when vehicles reach the United States.

“For UK car exporters, this is a very difficult development,” said Thomas Weldic, the economist in T. Rowe PRICE. “Some highly distinguished producers may be able to transfer the cost of definitions to consumers, because their customers are not sensitive to prices. For all auto companies in the United Kingdom, this policy will strongly restrict the arrival of the markets.”

During the construction of a new factory in the United States, it will take years, Henry has suggested brands like JLR and MINI owned by BMW who could consider assembling vehicles in the United States using the ingredients of “fully knocked”.

But it is also possible that this option is difficult because the Trump administration said that the 25 percent definitions will also apply to the parts that are obtained from outside the United States.

In the spring statement, Reeves A announced A series of discounts in spendingIncluding a controversial decrease of 4.8 billion pounds in luxury, to fill a 14 billion pounds hole in public financial affairs.

Today, it has finished 9.9 billion pounds of its financial value, just as it left itself in its budget in October, but it is very small with historical standards.

Many economists believe that it can be forced to raise taxes this year to place Public Finance In full stable and “shock” against this type of initiative related to Trump, overnight.

Reeves’s “IronClad” financial rule means that it must balance the current spending with tax receipts by the end of the expected period in 2029-30.