Some economists also warned that Trump’s trade proposals would come as a “shock” to countries around the world, including the eurozone and the UK economy.
Chancellor Rachel Reeves said Britain would make “strong statements” to President-elect Donald Trump about the need for free and open global trade.
“The U.S. also benefits from those who have access to free and open trade with us and other countries around the world, and that’s what makes us richer as a society to benefit from that,” she said.
Donald Trump has said he will sharply increase trade tariffs, particularly on China, if he becomes the next US president.
Ahmet Kaya, chief economist at the National Institute for Economic and Social Research (Niesr), also said Britain could be “one of the countries most affected” by such plans.
Economic growth in the UK is estimated to slow to 0.4% in 2025, below the forecast of 1.2%.
Katrina Ehl, director of economic research at Moody’s Analytics, said: “Trump’s global trade policies are particularly worrying in Asia, given a strong protectionist platform that has promised more aggressive tariffs on US imports.”
Trump’s more isolationist foreign policy stance has also raised questions about his willingness to defend Taiwan against potential aggression from China.
The self-governing island is a major manufacturer of computer chips that are critical to the technology that drives the global economy.
Investors also have other key issues to focus on this week.
The US Federal Reserve is due to announce its latest interest rate decision on Thursday.
Central bank chief Jerome Powell’s comments will be closely watched around the world.
