Sterling Steadfast as U.S. Tariff Tensions Loom

Sterling remained stable ahead of U.S. President Trump's anticipated tariff announcement. New tariffs could challenge the UK economy, but Britain hopes for a swift reversal through negotiations. Markets are cautious, awaiting potential British exemptions in the trade deal landscape.

On Wednesday, sterling held its ground as international markets braced for U.S. President Donald Trump's impending tariff announcement. The pound traded steadily at $1.2921, largely unchanged since mid-March, as the global economic landscape awaited potential seismic shifts.

Trump is slated to unveil significant reciprocal tariffs on international trading partners in the Rose Garden later on Wednesday. While exact details remain under wraps, reports suggest the imposition could lead to a 20% increase in duties, affecting nearly every nation involved.

The looming tariffs pose a threat to the lukewarm UK economy, with possible repercussions for financial plans laid out by finance minister Rachel Reeves. Despite the risk, optimism persists in Britain, with hopes for future tariff exemptions as part of a new economic partnership with the U.S.

(With inputs from agencies.)