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Liberation Day speech: "This was an unbelievably surreal announcement, with Trump reading tariff levels like a cruise-ship bingo caller"

ended 02. April 2025

Following Trump's “Liberation Day” speech delivered in the Rose Garden this afternoon, where a 10% tariff on the UK was announced (compared to 20% on the European Union), Newspage asked economists, investment and forex experts for their views on the potential impact on the UK economy and Sterling. Business owners from all sectors were also asked for their views on how the tariffs announced by Trump might impact them and their sectors. One economist said: “This was an unbelievably surreal announcement, with Trump reading tariff levels like a cruise-ship bingo caller to a garden full of sycophants. He said it’s all ‘very simple’ for the US but, sadly, this is not the case for those on the receiving end of his tariff tempest. For Britain, this tariff battle could be the start of a Brexit dividend, with the UK expecting 10% tariffs, one of the lowest globally, compared to the EU at 20%.” A forex expert added: "A 10% hit could shave roughly 0.5-1% off GDP, depending on how much trade gets choked." Views below.

7 responses from the Newspage community

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Harry Mills
Director at Oku Markets
It is undeniable: whether you like him or not, Donald Trump is an incredible communicator. We received the per-country tariff news courtesy of Trump's large 'tariff board' stage prop, confirming reciprocal tariffs of about half the level the administration claims is levied on US products. Trump explained this was the US "being nice". My initial thought was this erred on the lighter side of what was possible from today's event, but some of the tariffs are more than sizeable. 10% is the minimum, with the UK, Australia, and Singapore seemingly getting off lightly when compared to 34% on China, 24% on Japan, and 20% on the EU! In the short term, this news may continue to weigh on the dollar, with sterling likely to outperform the euro.
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Colin Low
Managing Director at Kingsfleet
The last time this many countries had numbers put next to them was the Eurovision Song Contest. It’s an incredible way to conduct diplomacy, government and economic policy. But it was pure theatre. Like him or loathe him, Trump knows how to deliver to his constituency and to demonstrate that he has listened to their issues. In economic terms, there is a definite benefit from Britain having distinct negotiating to the EU so, in this case, there is a benefit to Brexit. For investors, just remember that you are investing in companies not countries. Companies are more imaginative and nimble than governments and opportunities for profitable trading will be established in no time at all. This is a massive experiment for the US economy and time will tell if the Trump administration have been successful in their aims or whether the US public baulk at the increased costs.
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
This was an unbelievably surreal announcement, with Trump reading tariff levels like a cruise-ship bingo caller to a garden full of sycophants. He said it’s all ‘very simple’ for the US but, sadly, this is not the case for those on the receiving end of his tariff tempest. For Britain, this tariff battle could be the start of a Brexit dividend, with the UK expecting 10% tariffs, one of the lowest globally, compared to the EU at 20%. With European exports, already suffering from sluggish growth, in the firing line, a further weakened euro could push the ECB into a defensive stance, delaying interest rate cuts or even triggering unexpected interventions in an effort to stabilise the currency. For Britain, with both the US and EU engaged in a tit-for-tat trade war, the UK could further its already fairly favourable position into more of a neutral trading partner, leveraging its free trade agreements to fill supply chain gaps as a stable intermediary.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Trump is playing roulette with not only his economy but others as well. This will either be disastrous or a stroke of genius. Given his flip flopping economic policy, I’m sure things will change before the end of the month, if not before the week is out.
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Justin Moy
Managing Director at EHF Mortgages
It's difficult to see what the immediate impact will be of these tariff changes. On the face of it, the UK has one of the better outcomes, but the wider European impact may make banks more cautious and possibly drive up interest rates in the short term. But It will be fascinating to see how lenders and the wider money market reaction will be. Adding more costs will only drive prices up, inflation higher and rates with it, potentially.
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Tony Redondo
Founder at Cosmos Currency Exchange
Trump’s “Liberation Day” speech is promising what he calls “the Golden Age of America,” which he believes will see more jobs and domestic production ushering in a new age of domestic prosperity. In a detailed presentation, Trump announced a 10% tariff on the UK and a heftier 20% on the EU among some even bigger tariff charges across the globe. For the UK economy, that 10% tariff stings as the US is Britain’s biggest single export market. A 10% hit could shave roughly 0.5-1% off GDP, depending on how much trade gets choked. The UK’s Q4 2024 GDP growth was a measly 0.1% so this could tip it into the red. The Euro’s taking a bigger punch with a 20% tariff that could kneecap growth in the likes of Germany, Ireland, and Italy, with their US surpluses in the direct line of fire. The reaction in the currency markets has been muted so far. The devil is always in the details so expect more volatility once the numbers are crunched.
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Scott Gallacher
Director at Rowley Turton
While the UK may have dodged the worst of the tariff hikes compared to the EU—a definite Brexit benefit—it’s clear Labour’s charm offensive in Washington had some effect. But let’s not kid ourselves: this will still cause real pain for the UK economy. With growth already stagnant and business confidence fragile, Trump’s tariffs are yet another nail in the coffin for Rachel Reeves’ already struggling growth agenda. At a time when the UK desperately needs stability and momentum, this move only adds to the uncertainty.