The Bank of England issued a chilling warning Wednesday: the U.S. government’s aggressive tariff policy is casting a long, dark shadow over the global economy, heightening uncertainty, triggering asset price shocks, and pushing the world one step closer to a recession.
In a report from its Financial Policy Committee, the U.K. central bank painted a picture of a financial landscape on the brink, citing a “sharp correction” in markets triggered by a mass sell-off of U.S. government bonds. The catalyst? A fresh wave of tariffs announced by former President Donald Trump, shaking investor confidence to its core.
Trump’s Tariff Barrage Sends Global Shockwaves
On April 2, Trump laid out a sweeping tariff regime on imports from dozens of nations. U.K. goods now face a 10% baseline tariff, with 25% slapped on British cars and certain metals. But the harshest blows landed squarely on China—Trump imposed 34% tariffs on Chinese imports, bringing the total to 54%, and pledged another 50%, bringing the grand total to a staggering 104% by Wednesday.
“The global risk environment has deteriorated, and uncertainty has intensified,” the committee said. “The probability of adverse events, and the potential severity of their impact, has risen.”
