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The direct impact of new tariffs remains small at around minus 0.2 per cent of global GDP, but the effect of proposed additional 25 per cent taxes on almost all US China trade would quadruple that effect to minus 0.8 per cent. Over the past year (2018), the global economy shifted from a robust, broad-based expansion to a widespread slowdown. The US economy would take a 2.1 per cent hit to its economy as a result, compared to 1.2 per cent for China. The UK will see its own UK GDP suffer by 0.4 per cent, according to the BoE’s latest estimate.
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