How Could Donald Trump’s Tariffs Affect UK Households and Their Finances?
As former U.S. President Donald Trump signals a return to aggressive trade policies, including the potential reintroduction of tariffs, questions are being raised about how this could impact UK households and their financial wellbeing.
Could There Be an Impact on the Housing Market?
Richard Donnell, Executive Director at Zoopla, explained that the UK housing market is closely tied to the broader domestic economy, which itself is influenced by global economic trends.
“The housing market has largely adjusted to higher borrowing costs and slower economic growth,” he said. “The impact of Trump’s tariffs is complex to assess, but overall it’s likely to dampen UK economic growth and keep inflation at levels that limit how much interest rates can be cut in the near term.”
Donnell noted that Zoopla’s outlook for the housing market in 2025 was based on average mortgage rates staying around 4.5%. While they still expect property sales to rise throughout the year, price growth may be more subdued than previously forecast. This is due in part to the new stamp duty rates and growing caution among buyers about property valuations.
What About Easter Holidays Abroad?
For those planning a getaway, the exchange rate could play a big role in budgeting for holidays. Sarah Coles, a personal finance analyst, said the pound has been recovering after a rocky start to the year.
“Anyone who hasn’t checked the exchange rate in a few months is in for a pleasant surprise,” she said.
However, the strength of the pound varies depending on the destination. Coles noted that travellers heading to Europe might find their holiday spending money doesn’t go as far. “As the dollar weakened, money shifted into other currencies, with the euro being a key beneficiary,” she explained.
