Trumponomics: Who are the winners and losers of ‘Liberation Day’?

From job losses to increasing bills, it seems that the British public isn’t in the running to be well-off as a result of Trump’s ironically-named ‘Liberation Day’ tariffs. Whilst Trump may not have assigned the UK tariffs on an astronomical level like he did China or Vietnam, our ten percent tariffs have still caused uproar and uncertainty among businesses, economists and the Government.

With an increase in the price of imports, the American energy sector may look to use more of its own energy, meaning they’ll have less to export to the UK. The US supplied 17% of Britain’s gas imports last year, and a decrease in these imports could mean an increase in British energy bills as we have to source more of our gas ourselves or invest further in renewable energy. 

Any investments that Brits hold—either directly or via funds—will have experienced a fall in their value at some point since the tariffs came into effect. Even if you do not invest in funds or stocks, your pension may hold some of these assets, meaning you still may have experienced a wobble in your finances. 

In UK industries that produce many goods for the US, there may be a drop in sales and a loss of jobs in the UK as American consumers opt to buy products manufactured in the US. Carmakers are likely to be hit especially hard by tariffs of 25%, and with around 25,000 jobs in the car manufacturing industry said to be at risk as exports to the US fall, there’s certainly a worry about the security of jobs in UK car making. 

Impacts experienced by businesses or the UK Government would likely transfer down the food chain, ultimately slapping the British public in the face. Businesses that face increased costs and delays could end up having to lay off workers or freeze hiring, and slow wage growth due to having to impose tighter margins. For small businesses already treading a fine line financially, Trump’s tariffs could be the straw that breaks the camel’s back—cutting into their already slim profits or driving up the price of products and services for consumers. 

If economic activity were to fall, such as the slowing of growth in key sectors, as a consequence of the tariffs, the Government would need to increase borrowing, which would reduce the money available for public services such as the NHS, education, transport, and welfare; unless taxes were raised or money cut elsewhere. 

But arguably, the most strenuous impact of Trump’s tariffs on the UK public—at least for now—is uncertainty and anxiety over what is going to happen as a result of his tariffs. As people begin to worry about the prices of products and their overall spending increasing, job security, and investment and economic growth, the levels of anxiety and stress, especially in households that are already vulnerable to economic difficulty, will experience a related rise. 

And what’s increasingly nerve-wracking is not just the potential financial impact that Trump’s tariffs could have on the British public, but the collapse of predictability and trust in America, our ally, that may cause political fretting and tension among Brits—leading to finger-pointing and blaming as people attempt to make sense of the impact. And as the UK Government tries to navigate this murky sea of uncertainty that surrounds Trump, there could be growing public distrust and division. 

With the UK’s special relationship with the US potentially becoming strained, in part due to the tariffs, questions arise among the public about the future of the UK’s alliances. It’s a harrowing possibility that political anxiety becomes as prevalent as financial worry—and when people are worried about both their personal and national circumstances, that fear can spiral, creating division and panic within society.

Will the extent of the impact that the tariffs have on the British public end up mundanely mild or shockingly severe? At the moment, it appears that only time will tell. Regardless of the severity, it’s an unfair, lose-lose scenario that results in the suffering of innocent Brits who are the victims of a political power move in which Trump is the only clear victor. 

Whilst tariffs are immaterial numbers, the human cost of them is personal. Be it the mother trying to stretch her weekly grocery budget, or the pensioner who watches his savings deplete, the consequences of these tariffs are felt by those at the bottom of the hierarchy, and the decisions are made at the top. Trump’s tariffs may not have been designed with the UK public in mind, but it’s the approximately 69.4 million possible losers in Britain alone who may suffer the ramifications of a decision made all the way across the Atlantic by the president of a country that claims to be our benevolent ally; and where is the liberation in that?

Words by Jasmin Notarangelo

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