Trump's Tariffs Hit Global Markets, UK Least Affected

President Trump's announcement of sweeping tariffs, referred to as 'Liberation Day,' has triggered significant market declines, with E-mini S&P 500 Index Futures dropping 3.3% and European markets following suit. Analysts caution that the tariffs, affecting a broad range of countries including allies, could lead to increased inflation and recession risks, complicating monetary policy for central banks. While some experts, like Professor David Miles from the Office for Budget Responsibility, suggest a 'very limited' tariff war may have mild positive effects for the UK by potentially lowering some prices, they also warn that broader outcomes remain negative. Concerns persist that the tariffs could diminish the UK government's financial flexibility and impact GDP forecasts. Business leaders express a mix of resilience and caution, believing effects may not be as severe as predicted, while others highlight the potential for a decline in business confidence. The overall sentiment reflects uncertainty as the tariffs loom and their implications unfold.