Wed, 02 Apr 2025

Wed, 02 Apr 2025 How Trump's tariffs might affect the UK and your money

The UK has been hit with 10% tariffs by the US, but there is uncertainty of the impact of them.

* The US has imposed a 10% tariff on all UK goods being imported into the US.
* This is in response to UK tariffs on American goods, but it's unclear how this will affect British consumers.
* UK businesses may pass on extra costs to customers through higher prices.
* Exchange rates between the dollar and pound could fluctuate, making import costs rise for UK firms.
* If the value of the dollar strengthens, import costs could rise, leading to higher prices in the UK.
* Higher prices in the UK could lead to workers demanding higher wages, further increasing business costs.
* The UK government may retaliate with tariffs on US goods entering the UK, potentially leading to rising prices for UK consumers.
* Some economists suggest that firms may send their goods to countries like the UK instead of the US, potentially leading to cheaper goods in the UK.
* British companies exporting goods to the US are likely to be hit hard by the measures.
* The car manufacturing and pharmaceutical industries could be particularly affected, with over 25,000 jobs at risk in the car industry alone.
* Tariffs could also affect interest rates, which dictate borrowing costs for households.
* Higher inflation could mean interest rates stay higher for longer.
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