Traders and economists see increased chances of cuts ahead but Federal Reserve Chair Jerome Powell said central bankers will wait to see the effects of new tariffs.

US President Donald Trump’s global trade war is tipping the balance at the Bank of England toward more interest-rate cuts, investors and economists say.

President Donald Trump announced the largest increase in tariffs in U.S. history on April 2, unveiling new import duties that he said would revive domestic manufacturing and amount to a national “Declaration of Economic Independence.

President Donald Trump's move to slap a 10% tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

Tariffs are taxes charged on goods imported from other countries. Companies bringing the goods into the country pay the amount, typically a percentage of the goods' value, to the government. Trump has announced a 10% "baseline" tariff on all imports to the US – this is what the UK will face.

The calculations used by the White House don’t include a detailed assessment of each foreign country's trade practices.

The Dow Jones Industrial Average dropped more than 1,600 points on Thursday as U.S. stocks led a worldwide selloff after the Republican president's announcement of tariffs against much of the world ignited a shock like none seen since the COVID-19 pandemic.

World leaders aren’t taking to President Donald Trump’s tariff regime too kindly. The White House slapped a blanket 10% tariff on all imports and additional import tax rates of up to 50% on countries with trade barriers.

Trump said tariffs will force other countries to lower their own rates on U.S. goods and services. But other nations are planning to retaliate.