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Trump’s tariffs may be reduced but their impact will be felt in the UK and beyond
We examine potential consequences of US president’s market chaos, which could reach every corner of global finance and economy
Donald Trump may have stepped back from his huge tariff rises on every country, except China, which now faces 125%, but the impact of the market chaos is likely to continue in the UK and beyond. The rest of the world still faces a blanket 10% tariff on all US exports.
While much of the focus has been the direct impact of the tariffs on physical goods, Trump’s actions threaten to reach every corner of global finance and the economy.
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Inflation is, at base, a tax on consumption – and it hits the poor the hardest, since they consume more of their incomes and the rich consume less.
That’s one reason for concern over Donald Trump’s tariffs, which will disproportionately affect the poor. When the 90-day pause on the tariffs expires, it is reasonable to expect prices to rise, and by a lot.
Mark Blyth is a political economist and professor at Brown University. Nicolò Fraccaroli is a visiting scholar at Brown University
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