For anyone trying to plan their finances – whether you’re sending money abroad, buying a holiday home or simply budgeting for the future – stability is everything. You want to know what to expect, so you can make smart choices. But right now, stability is in short supply.
President Donald Trump’s return to the White House has brought with it a wave of dramatic economic decisions. The most disruptive so far? A sweeping announcement in April that the US would introduce new tariffs – taxes on goods that other countries sell to America – across the board. This move instantly rattled economies around the world. Exchange rates spiked. Stock markets fell, and business confidence took a hit. If you were watching your money cross borders, you probably felt the impact – I know I did.
Then, almost as suddenly, things calmed down. Trump agreed to pause these new tariffs for 90 days, pushing back the threat of economic upheaval. That led to a short-lived sense of relief. Markets recovered. Businesses resumed talks. Some countries, like the UK, even rushed to sign new trade deals with the US in the hope of avoiding steep costs.
But here’s the catch: this calm might not last. In fact, there’s every chance it won’t.
Trouble still brewing
We’re just six weeks away from the end of that 90-day pause. Unless new deals are fully agreed and signed off by then, Trump could reimpose tariffs with little notice. That means we could be facing another wave of sudden policy changes as soon as July 9.
And there are already signs of trouble ahead. Just this week, a US court ruled that Trump’s latest tariff measures were illegal. That might sound like good news – and markets did breathe a sigh of relief – but Trump has already announced plans to appeal. And, even if his appeal fails, he’s already shown this term he is happy to ignore or undermine rulings he doesn’t like.
Even the new trade talks that seemed promising could be derailed. While deals like the one between the US and UK have been announced, they haven’t actually come into effect yet. British businesses are still waiting to find out when promised tariff cuts will kick in – and whether they’ll apply retroactively. Until those questions are answered, uncertainty continues to hang over the economy.
Why this matters to you
You might be thinking: I don’t run a business or trade goods across borders – why should I care? But if you need to move money internationally, especially for a big purpose like buying property abroad, helping family or retiring overseas, these changes can hit you directly.
Currency values rise and fall with market confidence. And when world leaders make sudden moves or court rulings spark fresh uncertainty, exchange rates can shift dramatically. One day the pound buys more euros or dollars, the next it doesn’t – and the difference could cost you thousands.
Even if things seem stable right now, it only takes one announcement to wipe out those gains. In a world where headlines drive financial markets, nothing is guaranteed.
So what can you do?
The good news is: you don’t have to sit and wait for the next shock. You can protect yourself. One simple and effective way to do that is with a forward contract.
A forward contract lets you lock in today’s exchange rate for a payment you’ll make in the future – it’s in a few weeks or a few months. So, even if the exchange rate drops tomorrow because of political turmoil, it won’t affect your plans. The rate you locked in stays the same.
In uncertain times, that kind of protection is essential. With just six weeks left until the current US tariff pause runs out, now is the time to take action.
The bottom line
We don’t know what will happen after July 9. Will Trump stick with the talks? Will courts stop him from bringing back the tariffs? Or will markets get another rude awakening?
No one can say for sure. And that’s exactly the point.
When so much is up in the air, the smartest thing you can do is plan for uncertainty. A forward contract helps you do exactly that – giving you peace of mind that your money will go further, no matter what happens next.
Book a call with Smart Currency Exchange today and talk to one of our account managers.
Because in today’s unpredictable world, the only way to be certain – is to lock it in.
