Trump tariffs threaten global growth and raise risk of ‘severe shocks’, says Bank of England

Levies have heaped pressure on government finances and increased chance of ‘further sharp correction’, report warns

Donald Trump’s sweeping tariffs have put global growth at risk, the Bank of England has warned, heaping pressure on government finances and increasing the likelihood of “severe shocks” to the financial system.

The Bank’s financial policy committee (FPC) said its global risk environment had deteriorated and “uncertainty had intensified” since its last update in November, with US tariff announcements contributing to a “material increase in risks to global growth” and inflation levels.