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's risk "heating up" inflation as the Bank of England could respond with higher interest rates, a small business expert warns. Last night, the UK was hit with entering the United States - the lowest percentage that countries are facing.

Speaking at the rose garden in a highly anticipated press conference, the president announced worldwide levies which come as a major blow to the UK's finances. Although Britain exports more services than goods, the economy will still feel the force of the tariffs. Amy Knight, small business expert at , says the "economic slowdown would be a huge blow for smaller businesses trying to grow".

"If inflation heats up as feared, the Bank of England will do their best to stop it boiling over by holding interest rates above 4%, or putting them back," Ms Knight says. "This not only makes debt more expensive for businesses, but more costly borrowing leaves consumers with less to spend, slowing growth."

The expert predicts that, with Rachel Reeves' fiscal headroom in jeopardy, UK businesses could find themselves "confronted with more tax rises in the autumn".

Tariffs are also likely to have a knock-on effect on the job market, as workers in the steel, manufacturing, and automotive industries may be the most vulnerable.

President Trump confirmed that all cars being sold into America will be subject to a 25% tariff, majorly impacting Britain which sells £7.6 billion-worth of motors to the US each year.

"The newly imposed tariffs will likely lead to decreased demand for British products in the US market, causing major problems for UK exporters big and small," Ms Knight explains. "Unless Jonathan Reynolds can negotiate a trade deal with Trump to save these sectors... employees of smaller companies could also be at risk."

Firms across the UK are still reeling from Rachel Reeves' Autumn Budget when business taxes were increased. Many companies had already made plans to reduce headcount this year as a result, as the impact of tariffs could now see their profit margins reduced further.