“A report by the Centre for Economics and Business Research in London stated that tariffs placed by the US on Chinese goods had so far hit ￡1.9 billion ($2.4 billion; 2.1 billion euros) of UK exports. This is because British goods are caught up in the supply chains of both countries.

 

Douglas McWilliams, founder and deputy chairman of the CEBR, says, “This is the direct effect, but there are a series of knock-on effects worldwide to this, and if it impacts on China’s growth or the US’, then there will be less demand for everyone else’s exports.”

 

Notwithstanding the trade turbulence, just over 10 years after the collapse of Lehman Brothers, there are fears the world could be facing the prospect of another downturn, if only because the current recovery is looking increasingly prolonged.

 

There are a number of concerns, including the effects of tightened monetary policy globally, particularly in the US, a slowdown in Chinese growth, the vulnerability of Italian banks and the risk this poses for the euro, and the possibility of the UK having a disorderly exit from the European Union.”

 

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