Bank of England Chief Warns of Trade Tensions with Trump's Tariff Plans

Andrew Bailey urges UK to maintain dialogue with US and EU to navigate potential economic fragmentation.

Bank of England Governor Andrew Bailey expressed concerns about the potential fragmentation of the global economy due to Donald Trump's proposed tariffs.
Bailey emphasized the importance of keeping an open dialogue with both the incoming US administration and the EU to safeguard the UK's economic interests.
Trump's proposed 20% import tax could significantly impact UK economic growth, with some estimates suggesting a potential £20 billion hit.
The UK is advised not to choose sides between the EU and US in any emerging trade conflicts, maintaining a balanced approach to international trade relations.
Bailey highlighted the need for patience, noting that US policy commitments may change post-election, and the UK should wait to see concrete actions before forming policy responses.