The U.K. finance minister blamed a changing world-an implicit nod to President Donald Trump's unfurling trade war-for the shrinking size of the British economy.
"The world has changed and across the globe we are feeling the consequences," Chancellor of the Exchequer Rachel Reeves said on Friday morning.
Official data showed the British economy contracted by 0.1 percent in January, the month Trump took office.
Trump hit the U.K. and its other trading partners with a 25 percent tariff on steel and aluminum this week.
The president is locked in tit-for-tat tariff battles with Canada and the European Union.
He has threatened more tariffs from April 2 for all of America's trading partners. Trump says these will be reciprocal and aimed at equalizing tariffs.
Stock markets are taking the trade war badly. Investors fear a recession is the consequence of the trade war.
The S&P 500 in New York has shed so much value in recent weeks that it is now in correction territory.
This is a developing story and more information will be added shortly.
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This story was originally published March 14, 2025 at 6:33 AM.