The UK 10-year gilt yield fell further to 4.3%, its lowest level since early December 2024, as US President Donald Trump’s new 10% global tariffs fueled demand for safe-haven assets. While Trump had signalled over the weekend that he might raise the rate to 15%, the smaller-than-feared levy offers only limited relief for UK businesses.
The tariffs come on the heels of a setback for Trump on Friday, when the US Supreme Court struck down his sweeping “liberation day” import duties imposed last year. Under the new measures, the US Customs agency will apply “an additional 10% ad valorem duty on imported articles of every country” for 150 days from Tuesday, unless they are specifically exempted.
Elsewhere, robust recent fiscal data, together with a relatively dovish Bank of England meeting, softer employment figures, and contained inflation, have helped calm markets, at least temporarily easing worries about domestic political uncertainty.
