DONALD Trump’s tariffs will blow our economy off course — despite faster than expected growth this year.
The levies and Chancellor Rachel Reeves’ £25billion tax raid on business will stop momentum in its tracks, experts warn.
Exports surged 3.5% as firms rushed orders to dodge looming US tariffs, experts warn[/caption]
The alert came as stats showed a surprise 0.7 per cent growth between January and March.
Strong performances in retail and manufacturing drove the rise — the best since the first quarter of last year.
A 3.5 per cent jump in exports also boosted the economy but experts said that indicated firms were bringing forward orders to avoid any potential tariffs from the US.
And while PM Sir Keir Starmer said he had met his goal of having the best growth among G7 countries, his Chancellor acknowledged the “economic headwinds”.
Ms Reeves said: “The world is changing. We can see that all around us, but we are a strong economy.”
Yael Selfin, chief economist at KPMG UK, predicted the UK’s “growth spurt” was likely to be short-lived as tariffs kick in.
She said: “Economic momentum is expected to slow significantly over the coming quarters, increasing the likelihood that the Government will fall short of its fiscal targets in the autumn.”
Shadow Chancellor Mel Stride said the latest growth “could well be the calm before the storm”.
He said the GDP figures had yet to “feel the full force” of Labour’s National Insurance tax hike.
He added: “The warning lights are flashing. Labour inherited a strong economy, but reckless policies are putting jobs, growth and working families at risk.”
Meanwhile, ex-No10 adviser Nick Williams said Ms Reeves will be forced to put up taxes because Labour’s spending plans are “not credible”.
He said more money is needed for defence and fighting crime — and the autumn Budget is the last chance to make changes the public will notice before the next election.
