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UK Economy Shrinks 0.3% Amid Job Cuts and Tariffs

6/13/2025

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UK Economy Shrinks

The UK economy took a hit in April, shrinking by 0.3%—the steepest drop since October 2023. Job cuts and investment cancellations, fueled by rising taxes and uncertainty from Trump's tariffs, contributed to a £2 billion decline in exports and a 0.6% dip in manufacturing. While construction saw a slight uptick of 0.9%, the outlook remains grim.

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Reeves Blames Tariffs

Chancellor Rachel Reeves pointed to Donald Trump's trade tariffs as a key reason behind the UK's lackluster April GDP figures, highlighting the impact of external forces. While defending necessary tax hikes to tackle public finance issues, she remained optimistic about recovery, citing recent trade agreements with the US, India, and the EU as promising signs for the future.

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UK Economy Shrinks

The UK economy took a hit in April, shrinking by 0.3%—the steepest drop since October 2023. Job cuts and investment cancellations, fueled by rising taxes and uncertainty from Trump's tariffs, contributed to a £2 billion decline in exports and a 0.6% dip in manufacturing. While construction saw a slight uptick of 0.9%, the outlook remains grim.

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