{"id":6300,"date":"2025-04-08T09:43:13","date_gmt":"2025-04-08T08:43:13","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=6300"},"modified":"2025-04-08T08:43:14","modified_gmt":"2025-04-08T08:43:14","slug":"why-trumps-tariffs-could-have-more-of-an-impact-on-your-finances-than-you-realise","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/why-trumps-tariffs-could-have-more-of-an-impact-on-your-finances-than-you-realise\/","title":{"rendered":"Why Trump\u2019s tariffs could have more of an impact on your finances than you realise"},"content":{"rendered":"

As global stock markets reel in response to US President Donald Trump\u2019s sweeping new tariffs, many UK businesses may assume this is a crisis confined to Wall Street or the multinational giants.<\/p>\n

<\/p>\n

However, Monday\u2019s sharp market downturn has shown that these developments have the potential to affect businesses and individuals much closer to home.<\/p>\n

The FTSE 100 fell by more than six per cent in early trading, its worst performance since the onset of the Covid pandemic.<\/p>\n

Every single company in the index opened in the red.<\/p>\n

Shares in Rolls-Royce fell by 12 per cent, while major banks such as Barclays and NatWest dropped between seven and eight per cent.<\/p>\n

These figures may seem distant from day-to-day operations, yet the underlying issues are deeply relevant across the UK economy.<\/p>\n

Rising costs in the real economy<\/strong><\/h3>\n

At first glance, a fall in Rolls-Royce\u2019s share price may appear inconsequential to most businesses.<\/p>\n

However, if companies of this scale seek to recover losses by increasing their prices, the impact cascades through the supply chain.<\/p>\n

This can affect component manufacturers, logistics firms, service providers, and even maintenance contractors. Those increased costs inevitably find their way to SMEs and end consumers.<\/p>\n

Even if your business has no direct relationship with multinational firms, the overall inflationary pressure could affect everything from equipment pricing to energy costs.<\/p>\n

UK exporters face tough decisions<\/strong><\/h3>\n

For UK businesses trading with the United States, these tariffs create a dilemma.<\/p>\n

The 10 per cent baseline tariff (and higher rates for specific sectors) force firms to choose whether to absorb the cost or raise prices elsewhere to balance their books.<\/p>\n

Increasing prices in other markets could undermine competitiveness, while absorbing the tariffs directly will eat into already tight profit margins.<\/p>\n

Some businesses may choose to pause or scale back US operations, redirecting resources to more stable markets.<\/p>\n

Personal investments and pensions under pressure<\/strong><\/h3>\n

Even individuals without direct business interests in international trade are likely to be affected.<\/p>\n

Most people in the UK have some degree of exposure to the stock market through their pension savings.<\/p>\n

Defined contribution pension schemes, in particular, tend to include global equities, meaning that sharp market corrections can erode pension values in the short term.<\/p>\n

There is some good news. Government bonds, which many pension funds also hold, have increased in value as investors seek safer assets.<\/p>\n

This could help to offset losses, but continued market volatility presents long-term risks to retirement planning and investment growth.<\/p>\n

What might happen next?<\/strong><\/h3>\n

There are several scenarios that UK businesses and individuals should keep in mind:<\/p>\n

    \n
  • Cost inflation across supply chains<\/strong> \u2013 Businesses may face higher prices for materials, components, or transportation, even if they do not import directly from the United States.<\/li>\n
  • Reduced global demand<\/strong> \u2013 As international goods become more expensive, consumers and businesses may cut back on spending, particularly in export-focused industries.<\/li>\n
  • Tighter financial conditions<\/strong> \u2013 Investor confidence may drop further, making it more difficult or expensive to access funding and finance.<\/li>\n<\/ul>\n

    Time to review your exposure?<\/strong><\/h3>\n

    While the full implications of this news are still emerging, it looks like there will be plenty of volatility, disruption, and new risks for UK businesses.<\/p>\n

    This is the time to assess your business\u2019s exposure to international markets, review your supply chain strategy, and reconsider pricing and investment assumptions.<\/p>\n

    Concerned about what this means for your business or finances? Speak with our team today for expert financial advice. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    As global stock markets reel in response to US President Donald Trump\u2019s sweeping new tariffs, many UK businesses may assume this is a crisis confined to Wall Street or the multinational giants.<\/p>\n","protected":false},"author":2,"featured_media":6303,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6300"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6300"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6300\/revisions"}],"predecessor-version":[{"id":6301,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6300\/revisions\/6301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6303"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}