Although UK may avoid tariffs, overall productivity could be impacted by tit-for-tat tariffs between economies

A full-blown trade war would pose a “substantial” threat to the British economy, Bank of England governor Andrew Bailey has warned.

Donald Trump struck Canadian and Mexican imports with new duties of 25% at midnight on Tuesday, and also levied extra 20% tariffs against Chinese goods, triggering retaliatory moves. He also threatened to place sweeping 25% tariffs on EU imports last week.