Wed, 09 Apr 2025

Wed, 09 Apr 2025 How exposed is the UK to Trump's tariff chaos?

The exact impact remains uncertain - but some of the emerging fallout may have an upside - here's why.

* The UK has been granted a 90-day reprieve from increased tariffs on US imports, with a lower levy of 10% instead.
* British exporters may still face higher costs due to tariffs imposed by the US and potential changes in global supply chains.
* Two-thirds of British exports to the US are services, which aren't subject to tariffs but could be affected by weaker demand elsewhere.
* The UK's growth is expected to suffer as a result of the trade war, with Chancellor Rachel Reeves warning that households and businesses will be impacted.
* Weaker growth may lead to more tax rises in the Autumn Budget, according to speculation.
* Movements in bond markets and stock prices could also have an impact on borrowing costs and household finances.
* Despite these challenges, there may be a silver lining, with falling oil and commodity prices potentially leading to lower inflation.
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