10 April 2025
If you are covering the impact of the latest U.S. tariff announcements and the resulting market reaction on personal finances, please see the following comment from Ian Futcher financial planner at Quilter:
Mortgages
"The introduction of significant U.S. tariffs has sparked global economic uncertainty, increasing expectations that the Bank of England may be forced to cut interest rates to help stimulate growth. The recently announced pause does change the picture slightly but there is still a huge amount of ambiguity in how things will play out. This shift in outlook has already begun to feed through into UK swap rates—the mechanism that helps price fixed-rate mortgages. As swap rates have dropped, some lenders have moved to cut mortgage rates, with more likely to follow if market conditions persist. Homeowners with variable or tracker deals could benefit further should the Bank of England act.
“For those on fixed-rate mortgages, it's essential to plan ahead. Ideally, borrowers should have their paperwork in order at least six months before their current deal ends. That allows them to move quickly and secure a competitive rate as they approach the end of their term. With mortgage pricing often fluctuating in response to economic news, being ready to act early can make a significant difference to monthly repayments. A conversation with a mortgage adviser can help ensure no opportunity is missed.
Savings
"Lower interest rates, while beneficial to borrowers, tend to erode savings rates, particularly in easy-access accounts. Tariff-driven inflation could further weaken the real returns savers receive. With that in mind, savers should be proactive—locking into fixed-term deals where higher rates still exist or considering a diversified investment strategy tailored to their time horizon and risk appetite.
Investments
"Recent swings in global equity markets following the U.S. decision to pause tariffs for most countries—but not China—highlight how sensitive investors are to geopolitical developments. While it’s encouraging to see signs of diplomatic flexibility, the persistence of elevated tariffs on Chinese goods still poses risks to corporate profits and broader economic stability. For investors, this is a reminder that market sentiment can shift quickly, and that staying invested through uncertainty can often prove more rewarding than trying to second-guess the news cycle.
"Investors should remain calm amid volatility and ensure their portfolios are diversified across regions and asset classes. Knee-jerk reactions rarely serve long-term goals. If anything, this period demonstrates why remaining invested and staying the course can often yield better outcomes than trying to time the market.
Pensions and annuities
"While markets have staged a partial recovery following the recent tariff pause announcement, it would be premature to assume the volatility is behind us. Pension pots, which are often heavily invested in equities and bonds, remain exposed to global market movements, and further swings in sentiment are highly possible. Those nearing retirement may see their pension values fluctuate more than expected and should consider whether their portfolios reflect an appropriate level of risk given the uncertainty.
“Annuity rates—tied closely to long-term gilt yields—may also face downward pressure if rate cuts are used to cushion the economic impact of tariffs. For those considering converting pension savings into a guaranteed income, timing will be key. As ever, professional financial advice can help ensure retirement plans remain on track, even as the external environment shifts.
Credit cards and debt
"If interest rates fall in response to tariff-induced economic weakness, borrowers may see modest reductions in the cost of credit. However, lenders are cautious in this environment and may not pass on the full benefits. Now is a good time to assess any outstanding credit card debt, consider transferring balances to 0% deals if available, or consolidate debt while rates are relatively favourable.
Economic context
"The U.S. decision to pause reciprocal tariffs for most countries—while sharply increasing them on Chinese imports—has added a fresh layer of uncertainty to the global economic outlook. Markets have responded with dramatic swings, reflecting both relief at signs of pragmatism and concern over the potential for a deeper trade rift between the world’s two largest economies. For households, the implications are wide-ranging with the prices on goods likely to rise, while broader market volatility can affect pensions, ISAs, and investment portfolios.
“This kind of geopolitical unpredictability underscores the importance of having a resilient financial plan. That means ensuring your investments are diversified across regions, keeping your emergency fund topped up, and reviewing big-ticket financial decisions like locking in mortgage rates or drawing retirement income in light of market conditions. While governments set trade policy, it's individuals who often absorb the shock. The best approach is to stay informed, stay flexible, and stay focused on long-term goals.”
