IF you're worried about what Donald Trump's mean for your pocket, we explain how to protect your finances.
Earlier this week, the US President announced on countries around the world, including a 10% tariff on all imports from the UK.
While the initial impact of is likely to be felt by people in the US, a looming global trade war could affect everyone in the long run.
The government is considering imposing “retaliatory tariffs” on 8,000 products if no pact is agreed by May 1.
If prices rise quickly, this can lead to a spike in , which is often followed by rising interest rates in a bid to slow price rises down.
Higher interest rates can lead to more expensive borrowing costs, like higher mortgage rates and pricier loans.
Tariffs can also mean consumers in the US will buy less foreign products, which could hit UK businesses and ultimately damage our economy.
Another impact of trade wars is that it can cause stock around the world to fall, which can reduce the value of any investments you may have, like your pension.
A staggering $2.2trillion was wiped off stock markets with the Nasdaq suffering its biggest tanking since the start of Covid.
But how can you protect your finances from all of these scenarios?
We've spoken to experts to look at what you can do now, from fixing your mortgage to reducing spending.
FIX YOUR MORTGAGE DEAL
Rising could mean another spike in our mortgage interest rates if the base rate rises.
The base rate is a tool that the Bank of can use to keep close to its target, which is 2%.
But there are ways you can combat rising prices, like locking into a fixed rate deal.
Sarah Coles, personal finance expert at Hargreaves Lansdown, said: “The uncertainty means that if you have a remortgage looming, it’s well worth shopping around for a deal as early as possible.
“If rates rise between now and when you need to remortgage you’ll have locked in a cheaper deal, and if they fall, you can track down something more competitive.”
Speak to a whole of market mortgage broker to find the best deal.
You will have to pay a free usually a flat rate (around £500) or a percentage of the loan amount (between 0.35% to 1%).
DON'T PULL OUT OF YOUR PENSIONS
Millions of people will likely see the value of their fall as markets around the world have dropped in response to Mr Trump's tariffs.
It's important not to make any knee-jerk responses to this, such as pulling out of your pension.
While it can be scary to watch the value of your money fall, you haven't actually lost anything until you pull it out of the stock market.
This is because your money can go back up again if it remains invested, whereas if you withdraw it, you have guaranteed the losses.
Matt Ennion, from Quilter Cheviot, said: “President Trump's tariffs have sent shockwaves through markets, and this will be making investors feel very nervous.
“However, the best thing to do in times like this is to stay calm and remain invested.
“Markets recover and is a long-term game, so while it may feel uncomfortable now, the worst thing to do is flee to cash.”
BUILD UP SAVINGS
A great way to combat financial uncertainty is to build up a nest egg to protect you in future.
If you're able to, putting aside some savings every month for a rainy day can help you to feel more at ease and will come in handy if you face a shock bill down the line.
It could be a good idea to fix into a long-term savings rate, if you're able to, as this means you will get a guaranteed return from your bank or building society.
Edmund Greaves, financial expert at blog Mouthy Money, said: “If inflation creeps up, locking in fixed-rate deals on your savings could shield you from rising costs.”
BE CAREFUL ABOUT TAKING ON DEBT
Like and savings rates, the cost of other borrowing through loans and could also increase.
Taking on more expensive debt means it is more difficult to pay back, as you have to pay a higher amount in interest.
This means a smaller chunk of what you pay back each month is actually clearing your debt.
HOLIDAY CASH
Exchange rates around the world have fluctuated in response to Mr Trump's tariffs.
The Pound is currently up against the Dollar, which means you can get more for your money if you're planning a trip to the States.
Other currencies have also risen and fallen, so it's worth checking if you could get more for any other trips you have coming up.
If exchange rates have improved, consider exchanging some of your cash now.
Rates could rise or fall in future, so it may be best to exchange half now and half later.
That way, if rates get worse, you have got a better deal now, but if they get better, you can still benefit.
FIX YOUR ENERGY DEAL
Energy prices have gone up this month after the price cap rose again, and the impact of the tariffs could cause household bills to rise further.
‘s price cap has risen by approximately 6%, adding an extra £111 per year to the average household bill.
Trump's tariffs could also mean higher for British households, according to analysts at Aurora Energy Research.
Anise Ganbold, the head of global energy markets research at Aurora, said: “Tariffs mean the US produces more goods at home, demanding more energy, and leaving less oil and gas available to export to Europe.”;
The US supplies the UK with gas, so any reduction in this could push up gas market price, which would then hit household energy bills.
Households can protect themselves by switching to a fixed deal.
Fixed deals work to protect customers from bill hikes if Ofgem was to increase the price cap in the .
Those who lock into a fixed energy deal are charged the same gas and electricity rates throughout the contract's term.
There are a number of fixed deals which don't have exit fees, which means you can switch if prices do fall.
To find the best fixed energy deals, start by visiting price comparison websites, which aggregate various offers from different energy suppliers.
The best sites include Uswitch.com and MoneySavingExpert's Cheap Energy Club.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “An effective solution may be to lock in a fixed tariff to protect your finances from any further bill shocks.
“There are far more deals available on the market now than there were during the energy crisis.
“To find the right tariff for your needs, shop around and consider all options including cheaper variable tariffs, a tracker product that changes daily based on wholesale cost, or time-of-use tariffs that can benefit people charging electric vehicles overnight or those that want to take better advantage of off-peak rates.”;
