It was a week like no other. In what most commentators saw as an act of grievous bodily harm on the global economy, Donald Trump sparked an all-out trade war by announcing the highest US import duties in more than a century.
News of a 10% basic levy across the board and far higher rates for many countries sent markets into panic mode, as the future of the global trade order suddenly hung in the balance.
The day after 'liberation day', markets across the globe shed about $2.5 trillion, the most since the onset of COVID five years ago, and there was no let-up on Friday. Apple (AAPL) was one of the biggest casualties, plunging by more than $300bn.
As the UK mulled its response – it faces the minimum 10% tax on exports to the US – China wasted little time in retaliating with additional tariffs of 34% on all US goods, starting next week.
Here are some highlights from the last seven days, plus a glimpse at the week ahead.
Key moments from last week
TOPSHOT - Trump's unprecedented tariff regime has reset global trade norms. ·STRINGER via Getty Images
In 2024, the UK exported almost £60 billion worth of goods to the US, meaning even the imposition of the lowest "baseline" tariff is a body blow.
Economists warned the new duties could throw the UK's economy off course, and make it much harder for the government to meet its self-imposed borrowing rules. This could slow economic growth and force the government to cut public spending or raise taxes to stay within those fiscal limits.
Prime minister Keir Starmer admitted the economy is bound to take a knock and promised any retaliatory measures would be calculated with "a cool head".
The central bank faces a delicate decision – continue cutting interest rates, or pause and wait for more clarity on how the impact of the tariffs will play out. It is possible the rate-setters' commitment to keeping inflation in check with higher rates may take a back seat to concerns that the additional trade duties could damage an already struggling economy.
Investors seem to believe that is the case, increasing their bets on a rate cut after Wednesday's announcements.
For companies already producing some of their goods in the US, the hit from Donald Trump's trade levies is likely to be far softer. There are 20 companies in the FTSE 100 (^FTSE) index with more than 20% of their facilities in the US, according to AJ Bell analysis of Bloomberg data.
One of them is the UK defence company BAE Systems' (BA.L), which has well over half of its facilities stateside, with the manufacture of armoured vehicles, ship repair and explosive materials geared to supply the US Department of Defense.
International equipment hire company Ashtead (AHT.L) is in the best position of all, with 90% of its facilities located in the US.
BAE Systems has well over half of its facilities in the US, where it manufactures armoured vehicles and explosive materials for the Department of Defense. ·Anna Gowthorpe - PA Images via Getty Images
Do also check out our money stories for all your personal finance needs. The trade war escalation could deliver a blow to mortgage holders as uncertainty takes hold: What Trump's tariffs could mean for UK mortgage rates
"Build-to-rent is completely transforming the rental experience, offering high-quality, professionally managed homes that truly put renters first," says Anne-Marie Brown, founder of property portal Love to Rent. We brought you a selection of the available options: 11 purpose-built rental homes that provide peace of mind
The UK's property market will be in the spotlight on Monday morning as Halifax reveals its house price index for March. Attention will turn stateside on Thursday where inflation data may give a steer as to the Fed's next move. Expectations are for a slight drop in the annual inflation rate to 3% from 3.1% in February.
On Friday the focus shifts back to the UK where hopes are high for an improvement in the monthly GDP reading as well as industrial production. The consensus is for a 0.1% uptick in both in March.
On the company earnings front, supermarket Tesco (TSCO.L) is expected to produce strong full-year results, with operating profits anticipated to come in ahead of guidance.
Investors will want to see how turnaround efforts are coming along at Boots-parent company Walgreens Boots Alliance (WBA), as the company gears up to be taken private later this year after agreeing a takeover deal last month.
With most retail shares falling in the wake of 'liberation day', investors will be poring over the latest results from Levi Strauss (LEVI) for any commentary, when the US jeans maker releases its first quarter earnings on Monday.
End note: Record spring's vital signs
A singing song thrush is one of the vital signs of spring. ·picture alliance via Getty Images
Spring is well and truly in the air now, as much of the UK basks in sunshine and unseasonably warm temperatures. To escape the seemingly endless doom and gloom in the news, why not get out into nature and help the Woodland Trust gauge how wildlife is handling changes in the climate.
They're asking the public to look out for any of spring's three vital signs – frogspawn, a singing song thrush or flowering blackthorn. Find out more here
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