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US Tariffs Announced + What it means for you?

On Wednesday, April 2nd, Donald Trump announced a 10% universal tariff on all imported foreign goods to the US, in addition to “reciprocal tariffs” on 180 countries with the highest rates being both Lesotho 🇱🇸 and Saint Pierre and Miquelon 🇵🇲 at 50%, Cambodia 🇰🇭  at 49%, and Laos 🇱🇦 at 48%.

These “reciprocal tariffs” consider the tariffs charged by each country to the US including currency manipulation and trade barriers.

The UK 🇬🇧 and EU 🇪🇺 were not exempt, with 10% for the UK and 20% for the EU respectively. 

No further tariffs were announced for Canada 🇨🇦 or Mexico 🇲🇽 following the previous tariff announcements of Mar 4, while China 🇨🇳 saw an additional tariff of 34%, aside from existing tariffs.

The universal tariff came into effect on April 5, while the reciprocal tariffs will begin on 9 April.

Recap

• On Tuesday, March 4, 2025, Donald Trump had announced he was going ahead with 25% tariffs on Mexican and Canadian goods, and an extra 10% duty on Chinese imports, following the initial announcement and suspension due to last minute negotations with Canada & Mexico.

• He was also due to announce new "reciprocal tariffs" worldwide on April 2nd to balance trade, especially with countries that have higher tariffs on US goods than the US has on their goods.

Impact & What it means for you?...

💰 Higher Costs of Doing Business 

• Most organisations especially those involved in international trade, will witness a further rise in business costs 

• This is aside from the expected increase in employer’s National Insurance which came into effect from April 1.

🚢  Industry & Supply Chain Disruptions 

• In the UK, industries with huge US exports such as machinery, cars and pharmaceuticals will be hit, weakening demand and causing supply chain disruptions as businesses seek to understand how to navigate the changes.

• Emma Rowland, trade policy advisor at the Institute of Directors, said the tariffs would be “a blow to British businesses”, that would force many to reassess the viability of the US as both a market and a supply-chain hub.

⬆️  Risk of Sustained Global Inflation & Higher Interest Rates 

• Businesses may seek to offset the impact of these costs by passing it onto the final consumers, hence making the prices of goods and services higher.

• This may result in sustained inflation globally and higher interest rates to combat inflation.

 ⚡ Global Volatility of Financial Markets & Uncertainty 

• Following the announcement of the new tariffs, the US stock market experienced a significant downturn, shaking investors and sending economic shockwaves around the world.

• Today, global markets experienced a fall, including the FTSE 100, which dropped to its lowest point in a year. Goldman Sachs has increased the likelihood of a US recession to 45%.

🇬🇧 Impact on Locally Made British Goods

• The tariffs may result in diversion and flooding of these US industrial exports to other markets like the UK, affecting locally made goods.

• The UK Business Secretary Jonathan Reynolds, stated that UK has safeguards in place to ensure it is not flooded with goods that would have gone to other countries.

📈 Growth Impact on the UK 

• According to the FT, these tariffs may dent the UK’s growth ambitions. 

• In the Spring Statement of Mar 26, the Chancellor of Exchequer, Rachel Reeves had stated that the UK is not immune from the global economic uncertainty and global financial market volatility.

• The Office of Budget Responsibility (OBR), also revised its growth forecast for 2025 from 2% to 1%. However, it expects growth to pick up from 2026 over the next four years.

Response from Keir Starmer:

He stated that the government is moving to the next stage of its plans, after negotiations failed to fend off any tariffs ahead of Wednesday's announcement. 

The PM also promised that any decisions will be guided only by national interest and in the interest of the economy, businesses and to put money in the pockets of the working people.

Another response from Downing Street…

Growing Up Around Wealthier Kids Might Mean You Earn More

New research suggests that children from low-income families who grow up in areas where wealthier and poorer people mix socially go on to earn £5,100 more per year on average as adults.

The study used anonymised data from around 20 million UK Facebook users and linked it to economic outcomes and school records.

Researchers found that these cross-class friendships—where children from different income backgrounds form real social ties—are strongly associated with higher future earnings, especially for kids from poorer households.

What do they mean by ‘cross-class friendships’?

These are real friendships between people from different income groups—not just living in the same area but actually mixing in meaningful ways.

While most friendships are formed in schools and local neighbourhoods, the researchers found that activities like sports clubs, youth groups, and shared hobbies were particularly powerful for economic mixing.

So how much of a difference does it make?

The effect was significant.

Children from low-income families who grew up in the top 10% most economically connected places earned 38% more (£5,100 extra a year) as adults than those in the bottom 10% least connected areas.

Social mixing was found to be higher in places like London and the South East, but lower in parts of Northern England, South Wales, Scotland’s central belt, and Northern Ireland.

But it’s not just about money

The benefits go beyond income.

Even after controlling for someone’s own earnings, the researchers found that people with more high-income friends reported being:

• 💬 5% happier

• 🤝 23% more trusting of others

  

Why does this matter?

This is one of the first large-scale studies to quantify how social connections across class lines affect life chances. And it suggests policy solutions too:

🏘️ Build mixed housing
 🏫 Rethink school catchments
 🏀 Fund inclusive extracurriculars

If you want to help improve social mobility, it’s not just about test scores or job training. It’s about who you grow up knowing.

The Some Stocks & Shares ISAs Worth £8.8 Million 

The UK’s top 25 Stocks and Shares ISAs are worth an average of £8.8 million—13 times more than the average top 25 Cash ISAs, which sit around £650,000, according to new HMRC data obtained by money app Plum.

To even make it into the “top 25 club,” you’d need at least £5.1 million in a Stocks and Shares ISA, or £500,000 in a Cash ISA.

The data covers the 2021/22 tax year but lands just in time for ISA season, with the new tax year beginning 6 April.

What is an ISA? 🤔

An ISA (Individual Savings Account) is a tax-free way to save or invest up to £20,000 per year.

There are two main types:

• Cash ISAs – savings accounts with tax-free interest

• Stocks and Shares ISAs – invest your money for potentially higher (but riskier) returns

You don’t pay tax on any gains, interest, or dividends earned within the ISA.

Why the big difference in value? 🤨

📈 Stocks and Shares ISAs allow your investments to grow over time—sometimes significantly.

🏦 Cash ISAs are safer, but grow more slowly.

The £8.8 million average shows how powerful compound growth and long-term investing can be—especially for higher earners and those who invest early.

Could ISA rules change? 💷

There’s talk that the government may cut the Cash ISA allowance from £20,000 to £4,000 in future years.

📣 Richard Fearon, CEO of Leeds Building Society, said this could impact savers and mortgage rates if introduced.

Which type is right for you? 🤗

💡 Experts say:

• Use Stocks and Shares ISAs for long-term growth if you can handle ups and downs

• Keep Cash ISAs for short-term goals, emergencies, or low-risk saving

ISAs remain one of the best tax-free tools to grow your money—how you use them is up to you.

Sources/Read More:

US Tariffs Announced + What it means for you?

• Sky News - Trump has acted for his country, I will act in Britain's interests, says Starmer

• FT: How Trump’s tariffs will hit the UK economy

• Guardian - ‘It could’ve been much worse’: how UK avoided a bigger blow from Trump tariffs

• BBC: See the Trump tariffs list by country

• Guardian - Trump announces sweeping new tariffs, upending decades of US trade policy

• BBC: How Trump's tariffs might affect you and your money

• CNBC: See Trump’s list: More than 180 countries and territories facing reciprocal tariffs

Growing Up Around Wealthier Kids Might Mean You Earn More 

• BBC

• BIT

• Meta

The Some Stocks & Shares ISAs Worth £8.8 Million 

• Evening Standard

• PA

• Plum

• Leeds Building Society