More Tariffs, Linklaters changes

Hi ZipLawyer! Trump's threatening more tariffs, whilst UK inflation is ramping up. We also have news featuring Linklaters, Cleary, Addleshaw, while Freshfields advises on a fresh new deal.

More Tariffs

You'll never guess.. Trump is threatening to impose more tariffs!

This time he's threatening 25% tariffs on automobiles, semiconductors, and pharmaceuticals, with a decision expected by 2 April. While steel and aluminium tariffs are already set to hit in March, these new levies would shake global supply chains, hammering exporters from Europe to Asia. Auto giants like Volkswagen and Hyundai and chipmakers in Malaysia and South Korea could be among the hardest hit, with Japan already raising concerns. Trump insists tariffs will drive industries back to the U.S., but critics warn of higher consumer prices, inflation risks and possible trade wars.

Inflation up, again?

UK inflation is heating up. Consumer prices jumped 3% in January, the fastest pace in 10 months, fuelled by higher airfares, motor fuel, food costs, and the Labour government’s VAT on private school fees. While the Bank of England (BOE) expected 2.8%, the spike means an interest rate cut looks less likely. But it's not all bad news. Services inflation hit 5%, slightly cooler than the BOE’s 5.2% projection. With energy bills set to rise again, real wages struggling to keep up, and economic growth stagnating, the UK risks slipping into stagflation—a scenario the BOE is keen to avoid.

• What's stagflation again? It's like being stuck in traffic while fuel prices keep rising—you’re not moving forward, but everything is getting more expensive. It happens when an economy experiences slow growth, high unemployment, and rising inflation all at the same time. It's a tough situation for both businesses and consumers.

What we're watching

• 🇺🇦 Ukraine Tensions – Zelenskiy scrapped his Saudi Arabia trip after being excluded from US-Russia talks on Ukraine’s future. The US has assured European allies that sanctions on Russia will remain until a peace deal is struck. Meanwhile, Trump hinted at a potential meeting with Putin before the end of February.
• 💸 HSBC’s Big Moves – The bank announced a $2 billion share buyback alongside earnings that beat expectations. However, it flagged $1.8 billion in restructuring costs over the next two years, with fresh job cuts reportedly on the way.
• 🇦🇷 Argentina’s Crypto Drama – President Javier Milei faces political heat over a memecoin crash, with scrutiny shifting to his sister, his top adviser. His attempts to downplay the scandal have only fuelled concerns, weighing on Argentine assets.

From the ZipTracker