What changed with Trump’s 10% tariff today?

A 10% levy on most US imports starts today, raising landed costs across consumer and industrial goods. Authorities used alternative legal routes despite a Supreme Court setback. Expect selective exemptions, but near-term pricing pressure builds as inventory buffers roll off. UK exporters to the US face tighter margins or renegotiated terms.

How could this affect UK inflation and interest rates?

If US inflation 2026 rises and the dollar strengthens, global yields can climb. That often tightens UK financial conditions, lifting gilt yields and mortgage costs. Import prices in GBP may rise with sterling weakness, nudging UK inflation higher. The Bank of England may stay cautious on cuts until pass-through risks ease.

Which UK sectors look most at risk now?

Exporters with high US revenue, import-heavy retailers, automakers with US exposure, and industrials relying on US components face near-term pressure. Energy-intensive companies risk higher input costs if oil rises. Price-takers with thin margins are more vulnerable than firms with strong brands, flexible sourcing, or inflation-linked contracts.

What data should investors watch next?

Focus on US CPI, UK CPI, and producer prices for pass-through. Track US gas prices, crude benchmarks, freight rates, and PMI input costs. Watch 2-year gilts, sterling, and credit spreads. Earnings guidance on gross margins and surcharge clauses will reveal how quickly tariffs are hitting UK and US consumer prices.

Law and Government

State of the Union February 25: Trump’s 10% Tariff Rekindles Inflation Risk

ByDanny Kontos February 25, 2026February 25, 2026

The state of the union 2026 marks the start of Trump’s 10% global tariff, raising inflation risk as it takes effect today. Despite a Supreme Court setback, the White House is proceeding under alternative authorities. US inflation is 2.4% year-on-year in January, while groceries are still rising. Economists estimate 2025 tariffs added about 0.92 percentage points to CPI. For UK investors, the state of the union 2026 shifts focus to import costs, margins, and rates, with energy and retailers most sensitive near term.