Expert comment: The global ripple effects of Trump’s tariffs

Michael Weber, Assistant Professor of Finance, University of Chicago Booth School of Business

“Trump’s tariffs are not just a trade spat – they’re a global economic disruptor. These measures inject uncertainty into supply chains, force businesses to rethink pricing and sourcing, and ultimately push costs onto consumers. My research shows that when consumers expect rising prices, they change spending habits, fuelling economic slowdowns before tariffs even take full effect.

“For the UK, which is not yet directly targeted by Trump’s tariffs, the potential ripple effects are already becoming apparent. As Andrew Bailey warned, slower global trade and shifting market dynamics will filter through, impacting investment, inflation, and business confidence – forcing businesses and policymakers to react to sudden trade shifts rather than plan for long-term growth.”