According to the Office for Budget Responsibility (OBR), U.S. President Donald Trump's plans to increase reciprocal tariff rates could potentially reduce British economic growth by up to 1%. The OBR suggested that if the United States imposed a 20% tariff increase on all trading partners, the British economic growth could be 1% lower than predicted in the year 2026-27. In such a scenario, the extra tariff revenue would be outweighed by decreases in income, corporation, and consumption taxes, erasing much of the government's fiscal buffer. Trump believes these proposed tariffs could benefit the U.S. economy, aiming to address the global goods trade deficit.