Carmaker shares fall after Trump’s 25% tariff, as Rachel Reeves warns against escalating trade war – business live

News Snapshot:

11m ago 10.31 CET Richard Hughes, head of the independent Office for Budget Responsibility, has warned that the car tariffs announced by Donald Trump will eat into Rachel Reeves’s fiscal headroom. Speaking to Radio 4’s Today programme, Hughes also flagged that a full-blown global trade war could eliminate that headroom altogether. He explained: “This represents the crystallisation of one of the risks that we highlighted around our central forecast, which was one of escalating global trade tensions.” “The UK exports, in terms of goods to the US, around 2% of GDP. Car exports are about 10% of that. “So that’s...