Overview

• Bank of England Deputy Governor Sarah Breeden states that Trump's tariffs are likely to reduce UK economic growth by lowering demand for UK exports and disrupting supply chains.
• The impact on UK inflation remains unclear, with reduced export demand potentially easing inflation while supply chain issues could raise prices.
• Trump has temporarily paused new tariffs for most countries, except China, where a 125% tariff remains in place, along with a 10% general levy.
• The tariffs represent one of the most significant shifts in US trade policy in a century, creating global economic uncertainty and market instability.
• Markets indicate an 84% likelihood of a quarter-point rate cut by the Bank of England in May, reflecting concerns over the chilling effect of trade policy uncertainty on business and consumer behavior.