Britain Faces Economic Squeeze Amid U.S. Tariff Shock

Britain's economic momentum hit a snag in April as it encountered unexpected challenges stemming from U.S. tariffs and the conclusion of a favorable property tax break, according to official data released Thursday.

The country's GDP contracted by a sizable 0.3% compared to March, making it the steepest monthly decline since October 2023. This surpassed a prior forecast of a 0.1% dip and reversed a 0.2% growth seen in March.

Economic factors such as a downturn in real estate and legal activities significantly contributed to this contraction. Simultaneously, car manufacturers reported lower production and exports to both the U.S. and EU markets.

(With inputs from agencies.)