Full impact of tariffs unclear but some chaos guaranteed

Liberation Day as the White House grandly calls the unveiling of its new trade policy is finally upon us.

- KARL MATCHETT

But what it actually means and what the impact will be is still not clear, as president Donald Trump keeps businesses and world leaders waiting until today to unveil the next round of tariffs.

While Mr Trump has suggested all nations will be hit with additional levies – and Sir Keir Starmer has admitted the UK is unlikely to escape the new measures – it’s still far from certain exactly which industries will bear the brunt this time, with steel, aluminium and auto parts already subject to additional import costs.

Here’s a look at what’s already known, what could happen, and what investors are doing as uncertainty reigns.

Market response The top end of the UK stock market has performed relatively well this year, considering concerns over growth, inflation, stillhigh interest rates and the wider geopolitical landscape.

The FTSE 100 is up more than 5 per cent year-to-date, in contrast to the US’ S&P 500 being down around the same amount. The uncertainty has hit smaller businesses more, with the FTSE 250 down 5.2 per cent in 2025 and the AIM All-Share Index down 4.3 per cent.

More recently, while there was a sell-off on Monday ahead of these new tariffs, it eventually wasn’t as steep as had initially looked the case and yesterday saw investors buying once more on price weaknesses, perhaps hinting that some saw limited further downside in share price terms, even with new tariffs to come.