One year ago, President Donald Trump launched sweeping global tariffs, ratcheting up trade tensions and fueling new concerns about the U.S. and global economy.

Dubbed “Liberation Day,” the tariffs targeted imports broadly, with Trump arguing they would fix trade imbalances and curb reliance on foreign goods. 

A year later, many of those tariffs have been struck down by the Supreme Court. The federal government is now working on a plan to refund roughly $166 billion in improperly collected duties, with details expected by mid-April.

SUPREME COURT DEALS BLOW TO TRUMP’S TRADE AGENDA IN LANDMARK TARIFF CASE

President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden on April 2, 2025. (Brendan Smialowski/AFP/Getty Images)

On the heels of “Liberation Day,” duties jumped from $9.6 billion in March to $23.9 billion in May following the rollout of the tariffs. 

For fiscal 2025, which ended Sept. 30, collections reached $215.2 billion, according to Treasury data, and the upward trend has continued into fiscal 2026, with receipts already outpacing last year. 

Revenue for the current fiscal year has reached $181.6 billion. Since Trump’s return to office, tariff collections have risen roughly more than 300%, delivering a major windfall to federal coffers. 

TRUMP SAYS US WOULD BE ‘DESTROYED’ WITHOUT TARIFF REVENUE

Tariffs function as a tax on imports, and in many cases, U.S. importers absorb the upfront cost and then pass it along through higher prices for wholesalers, retailers and, ultimately, consumers. That means households and businesses may face increased costs for goods ranging from electronics to raw materials.

Whether tariffs ultimately help or hurt the economy depends on how much of that burden consumers absorb, how domestic producers respond and whether the intended economic or geopolitical advantages are worth the added costs to consumers.

TRUMP CALLS TARIFF OPPONENTS ‘FOOLS,’ PROMISES $2K DIVIDEND PAYMENTS FOR AMERICANS

A demonstrator outside the U.S. Supreme Court in Washington, D.C., on Nov. 5, 2025. (Eric Lee/Bloomberg via Getty Images)

That dynamic makes the high court’s ruling especially consequential for households and businesses already navigating elevated costs.

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Meanwhile, the revenue surge underscores how central tariffs have become to Trump’s economic agenda, with the administration arguing that duty collections can help fund domestic priorities, reduce the nation’s debt and even deliver a proposed $2,000 dividend to Americans.

It’s unclear whether that plan is still on the table.

The Bank of England has warned that escalating tensions in the Middle East could push the UK towards a financial crisis scenario, as rising energy costs, higher borrowing rates and market volatility expose underlying vulnerabilities in the economy.

In its latest assessment, the Bank’s Financial Policy Committee (FPC) said the Iran conflict has already triggered a “substantial” shock to global markets, tightening financial conditions and increasing inflationary pressures at a time when risks were already elevated.

One of the most immediate impacts is being felt by homeowners. The Bank estimates that around 5.2 million borrowers, more than half of all mortgaged households, are now expected to face higher repayments by 2028, up from 3.9 million before the conflict began.

The increase reflects a sharp shift in market expectations for interest rates, with investors scaling back hopes of cuts and, in some cases, pricing in further rises.

More than 1,500 mortgage products have already been withdrawn from the market as lenders react to increased volatility, further limiting options for borrowers.

Andrew Bailey cautioned that markets may be overreacting to the outlook for rates, but acknowledged that the environment has become significantly more uncertain.

The conflict has disrupted global energy supplies, particularly through the Strait of Hormuz, a key route for oil and gas exports. The resulting surge in energy prices is feeding directly into inflation, raising the prospect of sustained cost pressures across the economy.

The FPC warned that higher inflation would weigh on growth while increasing borrowing costs, creating a challenging environment for both households and businesses.

Fuel prices have already risen sharply, and further increases in household energy bills are expected later in the year, adding to the cost-of-living squeeze.

The Bank also highlighted growing instability in financial markets. Hedge funds have unwound around £19 billion of positions linked to expectations of falling interest rates, contributing to volatility in short-term borrowing costs.

At the same time, the increasing interconnectedness of equity and bond markets, partly driven by hedge fund activity, raises the risk that stress in one area could quickly spread to others.

“A sharp correction in equity markets could transmit stress to gilt markets,” the committee warned, pointing to the potential for broader financial disruption.

Particular concern has been raised about the $18 trillion private credit sector, which has expanded rapidly since the financial crisis and now plays a significant role in corporate lending.

The recent collapse of Market Financial Solutions was cited as an example of vulnerabilities in the sector, including high leverage, limited transparency and optimistic valuations.

Bailey drew parallels with the early stages of the 2008 crisis, noting that initial warnings about isolated problems can sometimes underestimate systemic risks.

The report also flagged rising risks in sovereign debt markets, with governments, including the UK, issuing large volumes of bonds to finance spending.

The UK is expected to spend more than £100 billion this year on debt interest alone, limiting fiscal flexibility and reducing the ability to respond to future shocks.

The FPC warned that the combination of higher borrowing costs and weaker growth could create a “debt trap” for some economies, further amplifying global financial risks.

Despite the warnings, the Bank stressed that the UK’s core financial system remains resilient, with banks well capitalised and capable of absorbing shocks.

However, it cautioned that the combination of multiple pressures, including high household debt, market volatility and geopolitical uncertainty, increases the risk of a more severe downturn if conditions deteriorate further.

The Bank’s assessment underscores the fragility of the current economic environment, where global events are quickly feeding into domestic financial conditions.

For households, the prospect of higher mortgage payments and rising living costs presents a significant challenge. For businesses, tighter financial conditions and weaker demand could constrain investment and growth.

For policymakers, the task is to navigate a narrow path between controlling inflation and supporting economic stability, while preparing for the possibility that the current shock could evolve into a broader financial crisis if multiple risks materialise at once.

Construction begins on 85,000 sqft advanced manufacturing centre for motorhome and caravan electrical systems

Construction has begun on a new factory for electrical equipment manufacturer Sargent Electrical Services in Beverley. Building crews are now on site at the Grovehill location which will house the company’s Advanced Manufacturing Centre.

Groundworks are currently in progress as part of an initial construction phase for the 85,000 sq ft facility which has been designed to operate predominantly off grid. Crews from Triton Construction are now readying the site for the building’s steel framework, which is anticipated to arrive within weeks.

Family-run Sargent describes the project as a substantial investment and says it will underpin plans to expand its workforce from roughly 140 to 200 employees. The business hopes the new facility will become operational from April next year.

The factory will provide Sargent with additional capacity for its production of electrical systems for motorhomes and caravans. It will also deliver new office accommodation and employee amenities.

Triton has been named as principal contractor and will oversee the entire project, managing all specialist subcontractors and building services using its track record of delivering industrial, logistics and manufacturing developments throughout the North of England, reports Hull Live.

Paul Clarkson, managing director at Triton Construction, said: “This is a fantastic project for our team and an important investment in advanced manufacturing in East Yorkshire. Triton Construction is ready to deliver this facility and showcase our expertise in the industrial, logistics and manufacturing sectors.

“Having successfully delivered industrial developments across the region for clients including Mileway, Marshalls CPD, Chancerygate and Hanson Logistics, we look forward to bringing that experience to the Sargent Advanced Manufacturing Centre.”

James Burgess, contracts manager at Triton Construction, added: “With construction now underway our focus is on maintaining a safe, well-coordinated programme. We will be working diligently with local residents and other neighbours to be a considerate constructor.”

Ian Sargent, managing director of Sargent Electrical Services, said: “The Advanced Manufacturing Centre represents a major step forward for our business. It will allow us to expand manufacturing capacity, improve efficiency and create a modern facility that reflects our commitment to innovation and sustainability. We are delighted to be working with Triton Construction to deliver this important investment in the future of our business.”

The £14.8m turnover Sargent specialises in constructing intricate wiring systems and, alongside its established niche in motorhomes and caravans, has also achieved notable success on large-scale projects, including several prominent London landmarks. The firm has also developed telemetry-based systems utilised in precision farming, providing farmers with valuable data on soil conditions and other key variables.

Sargent secured planning permission last year for the Grovehill site, which formerly housed a care home. The company currently operates from a unit at Tokenspire Business Park.