The Bank of England governor has warned that US President Donald Trump’s tariffs could leave UK consumers with less money.

Andrew Bailey told MPs that tariffs could slow economic growth and pose “substantial” risks to the UK and global economies.

Other Bank experts also cautioned that trade tensions could harm businesses in the UK and beyond. Bailey stressed the need for global solutions to trade disputes and highlighted the importance of international trade.

The US has escalated trade tensions, recently imposing new tariffs on imports from Mexico and Canada and doubling levies on Chinese goods. If similar tariffs are applied to UK exports, it could weaken the UK economy as firms would struggle to sell to US consumers.

However, while this could reduce inflation by lowering demand, a disrupted supply chain could have the opposite effect – hurting growth and driving prices up.

The Trump administration argues that higher tariffs will help secure better trade deals. However, experts warn that increased trade barriers could push up prices in the US, worsening inflation and harming economies worldwide.

Some of Trump’s own advisers have previously suggested pulling back from aggressive tariff policies.

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