𝗛𝗼𝘄 𝘄𝗶𝗹𝗹 𝘁𝗵𝗲 𝗧𝗿𝘂𝗺𝗽 𝗧𝗮𝗿𝗶𝗳𝗳𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝗹𝗼𝗰𝗮𝗹 𝗮𝗻𝗱 𝗿𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞?

The US President has imposed additional 25% tariffs on all exports from Mexico and Canada (10% on energy) and 10% on China. In the press this morning it was said that increased tariff rates on the EU were going to happen, but no clarity about the UK.

Such interventions in international trade flows will have big repercussions for national and local economies outside of the US.

𝘈 𝘴𝘭𝘰𝘸𝘥𝘰𝘸𝘯 𝘪𝘯 𝘨𝘭𝘰𝘣𝘢𝘭 𝘵𝘳𝘢𝘥𝘦 𝘷𝘰𝘭𝘶𝘮𝘦𝘴: will likely reduce UK and local growth.

Tariffs are likely to increase costs of goods and services – 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯𝘢𝘳𝘺 𝘱𝘳𝘦𝘴𝘴𝘶𝘳𝘦𝘴 𝘸𝘪𝘭𝘭 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘦.

𝘛𝘩𝘦 𝘤𝘰𝘴𝘵 𝘰𝘧 𝘣𝘰𝘳𝘳𝘰𝘸𝘪𝘯𝘨 𝘪𝘴 𝘭𝘪𝘬𝘦𝘭𝘺 𝘵𝘰 𝘳𝘪𝘴𝘦 – as the US Fed is under pressure to raise US government bond yields, the UK government will have to follow suit, thus raising interest rates.

If this means a fall in the FTSE / company valuations, this may make it harder for firms to borrow.

Today it was signalled that the UK’s rate of economic growth was weak and the Bank of England was likely to cut interest rates throughout 2025. 𝘚𝘰 𝘵𝘩𝘪𝘴 𝘴𝘩𝘰𝘤𝘬 𝘪𝘴 𝘤𝘰𝘮𝘪𝘯𝘨 𝘢𝘵 𝘢 𝘷𝘶𝘭𝘯𝘦𝘳𝘢𝘣𝘭𝘦 𝘵𝘪𝘮𝘦 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘜𝘒 𝘦𝘤𝘰𝘯𝘰𝘮𝘺.

𝙒𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙞𝙨 𝙢𝙚𝙖𝙣 𝙛𝙤𝙧 𝙡𝙤𝙘𝙖𝙡 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙙𝙚𝙫𝙚𝙡𝙤𝙥𝙚𝙧𝙨 𝙞𝙣 𝙩𝙝𝙚 𝙐𝙆?

* 𝗞𝗲𝗲𝗽 𝘄𝗮𝘁𝗰𝗵𝗶𝗻𝗴 𝗮𝗻𝗱 𝗯𝗿𝗶𝗲𝗳𝗶𝗻𝗴. During economic shocks and big changes, I’ve run teams that put together weekly and sometimes daily briefings on the local and regional economy. Events move quickly. Stay on top of them.

* 𝗗𝗶𝗮𝗹𝗼𝗴𝘂𝗲 𝘄𝗶𝘁𝗵 𝗨𝗦, 𝗖𝗮𝗻𝗮𝗱𝗶𝗮𝗻 𝗮𝗻𝗱 𝗠𝗲𝘅𝗶𝗰𝗮𝗻 𝗖𝗼𝗻𝘁𝗮𝗰𝘁𝘀, 𝗮𝗻𝗱 𝘁𝗵𝗲 𝘄𝗶𝗱𝗲𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆. If you have contacts who can shed light on the impacts of the tariffs, the wider implications and what’s next – you need to bring them into the conversation.

* 𝗣𝗿𝗼𝗯𝗲 𝗳𝗼𝗿 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀. Initially this will be firms that have links to the US or perhaps are owned by a Canadian multinational. Or you have a big project with a large US investment involved. These kinds of committments are now being reviewed.

* 𝗟𝗼𝗼𝗸 𝗳𝗼𝗿 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀. Shocks and big changes to economic dynamics can lead to some bold decisions, and new investment priorities.

* 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝘁𝗼 𝘆𝗼𝘂 𝗳𝗼𝗿 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽. You are the voice for your local and regional economy. You can provide leadership, briefing and bring people together.

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