US has ‘permanently changed’ world’s view of it as a trading partner: NI housebuilding boss

And while global markets calmed on Tuesday, independent economist Richard Ramsey said the disruption may have hit the plans of those with immediate plans to retire.

It comes as the UK government said it would look closely at any impact on NI business of retaliatory EU tariffs.

Conor Mulligan, managing director of Lagan Homes in Belfast, said trading nations would now increasingly look east to form enduring alliances.

And he said any knock-on effect on the NI housing market would depend on the tariff policies’ impact on interest rates set by the Bank of England. But Mr Ramsey said that with Mr Trump’s tendency to go back on policy announcements, no companies would be in a rush to make investment decisions in reaction to the tariffs.

“People used to joke that Mark Carney was like an “unreliable boyfriend” as Bank of England Governor because he couldn’t commit on interest rate policy, and that’s what Donald Trump is like now,” Mr Ramsey said.

“His credibility is shot, and from an economic perspective, people will just do nothing and put plans on hold, which is the worst thing for the economy.”

And he said the stock market falls of the last week or so — although the market had steadied on Tuesday — could have a direct impact on retirement plans.

“You can draw 25% of your pension tax free, and that lump sum could be down 10 or 15% from your pension pot of an initial £500,000.

“Anecdotally, I have heard people say that they were going to retire later this year, but they’re now not going to do that, with the changes.”

Mr Mulligan said: “The longer term worry is the impact this has on interest rates but it is too early to determine what way, if any this will push rates.

“Overall I believe Trump has permanently changed the way the US is viewed as a trade partner and people will start looking east rather than west.”

The leaders of EU countries are due to vote on a package of counter-measures responding to US tariffs on steel and aluminium already in effect.

EU trade commissioner Maros Sefcovic has indicated to the Irish Government that Kentucky bourbon and dairy/butter products are off the list for the EU response to Trump’s levies.

If the EU decides to impose retaliatory tariffs on goods imported from the US, they would apply in Northern Ireland as the region continues to follow the EU’s rules in some areas of trading due to the Windsor Framework.

Downing Street has said it will “look carefully” at the impact any retaliatory tariffs have on businesses here.

US tariffs of 20% on goods from European Union nations come into force on Wednesday.

Asked about their impact on Northern Ireland, the Prime Minister’s official spokesman told reporters: “As things stand, Northern Ireland exporters will be impacted in the same way as any other exporters in the UK, but we will need to look carefully, as you say, at the details of any retaliatory tariffs announced by the EU, any impact these might have on businesses.

“The Cabinet Office minister has talked about all this with EU counterparts in recent days because the Government is fully aware of how sensitive this issue is for businesses in Northern Ireland.

“What we need in these circumstances is a calm and considered response, and that is what the Government will continue to provide.”

Meanwhile, Secretary of State for Northern Ireland Hilary Benn told the House of Commons that NI “gains” from EU access under the Windsor Framework, but the whole of the UK will “have to deal with the consequences” of tariffs.

Mr Benn said only 2% of imports to Northern Ireland come from the US, equivalent to about £800m.

Mr Benn stated that businesses who lost out as a result of EU retaliation would be able to claim the disparity in levy back from the duty reimbursement scheme — if the goods have not entered the EU first — and the custom duty waiver scheme.

He told MPs: “Tariffs are not good news for anyone, and no-one wants a trade war.

“The Government is doing everything possible to keep Britain secure during this new era of global instability, and it will always act in the best interests of businesses in Northern Ireland.”

He added: “HMRC is continuing to talk to and support any businesses that might be affected to help them understand how to use the duty reimbursement and customs duty waiver schemes.”

Prime Minister Sir Keir Starmer said the UK would not be rushing to retaliate against the US 10% tariff. He continued to call for a calm approach as a sense of optimism returned to the financial markets after several days of heavy losses.

London’s FTSE 100 index was up 2.71%, or 208.45 points, on 7,910.53 at the close of trading on Tuesday.

In the US, the Dow Jones index and the S&P 500 also made gains while Asian markets rebounded following steep falls in previous days.