The ink was barely dry on Rachel Reeves' Spring Statement before her plans to balance the nation's books were effectively blown out of the water.
Trump's tariffs on foreign-made goods, particularly cars, are fueling fears of a global trade war that could negatively impact economic growth, jobs, and potentially lead to tax increases. Experts warn of historical parallels with the disastrous Smoot-Hawley Tariff Act of 1930, potentially triggering a similar destructive cycle of stifled global trade. While tariffs might initially raise revenue, they could hit corporate profits and market indices. Companies may absorb tariff costs, sparing consumers price rises, but escalating trade tensions are considered a "lose-lose" situation for all countries involved.
