The Bank of England has warned on Wednesday that US tariffs is risking the global financial system which could depress growth.
The Bank’s Financial Policy Committee (FPC) warned, “The global risk environment has deteriorated, and uncertainty has intensified. The probability of adverse events, and the potential severity of their impact, have risen.”
A major move in global trade could “harm financial stability by depressing growth” which is “particularly relevant” to the UK as we have an open economy.
The Bank said the British banking system is strong and will be able to help support businesses if conditions get worse.
The Chancellor Rachel Reeves has said she does not “want to see and escalation of tariffs.”
She told reporters, “Trade wars are to the benefit of no one, and that is why in the UK, we are keeping cool heads and remaining pragmatic.
“We will always act in our country’s national interest for jobs and to support British business.
“That’s what we will continue to do whilst we have ongoing discussions with our counterparts in the United States.
“We don’t want to see an escalation of tariffs. We want to do a deal that supports the UK economy.”
