US Tariff Uncertainty Drives Companies to Cut Costs, Threatens UK Economic Growth

President Trump's newly announced tariffs, including a 10% baseline on most imports, are fueling global economic uncertainty and prompting companies to aggressively cut costs and delay investments. In the UK, these tariffs are expected to significantly slow economic growth by reducing exports, particularly in vulnerable sectors like car manufacturing and pharmaceuticals, while also dampening consumer and business confidence. Globally, experts warn that the U.S. tariff strategy not only disrupts international trade but also undermines the U.S. economy itself, with some analysts arguing it could inadvertently strengthen China's competitive position in industries like artificial intelligence. Within the U.S., businesses are reporting delays in major projects and reductions in discretionary spending as they await clarity on trade policy. The IT sector is particularly affected, with a significant portion of channel partners anticipating reduced spending on AI and other technologies due to reciprocal tariffs and persistent market uncertainty.