The British pound fell below $1.36, hitting a two-week low, pressured by a stronger US dollar and concerns over the country’s fiscal outlook. US President Donald Trump warned 14 nations, including Japan and South Korea, of 25% tariffs effective August 1. So far, only the UK and Vietnam have reached deals to avoid the new levies, which are separate from existing tariffs on autos, steel, and aluminium. The UK is rushing to finalize a deal with the US to eliminate tariffs on British steel, with fears the levy could jump to 50%, threatening an already fragile domestic steel industry. At the same time, concerns over the UK’s fiscal health weighed on sentiment. The Office for Budget Responsibility (OBR) warned that public debt could exceed 270% of GDP by the early 2070s, citing pressures from an ageing population and rising healthcare and pension costs. Growing global tensions and calls for increased defence spending are also adding to the long-term fiscal uncertainty.