The ongoing US trade war is causing inflation, slowing down the economy, and depressing business confidence, according to recent reports from S&P and the Bank of England Governor. Tariff price hikes have led to a record-high trade deficit in goods as businesses aim to beat the additional costs.

The uncertainty surrounding trade policies has resulted in a decrease in consumer spending and investment, leading to a ripple effect across various industries. Many businesses are now facing challenges in planning for the future and making strategic decisions amidst the trade tensions.

HSBC has expressed concerns over bad debts and the potential impact of automotive tariffs, while Tesla sales have been affected by the tariffs imposed on China. Stock markets worldwide, including the FTSE, have been reacting to the trade war developments.

As the trade war continues to escalate, experts are urging policymakers to find a resolution to prevent further damage to the global economy. The effects of the trade war are being felt not only in the US but also in other countries, highlighting the interconnected nature of the international business landscape.