British industry faces a sharp downturn over the coming months as the impact of Donald Trump’s tariffs are felt, Goldman Sachs has warned.
The Wall Street bank expects UK industrial production to take a 3pc hit – the second sharpest downturn among major economies – as a result of US trade policy.
Only Canada and Germany are forecast to suffer more severe blows to the output of their manufacturers, miners and utilities, Goldman said.
Chief economist Jan Hatzius said: “The trade pullback is likely to spill over to broader activity, and the historical relationship between trade and activity suggests that trade headwinds could lower industrial production by 1-5pc.”
The warning comes as markets shrugged off any concerns about Mr Trump’s latest barrage of tariffs.
