Concerns have been raised by councillors over the effect United States of America President Donald Trump’s ‘trade war’ tariffs will have on Powys.

Senior Powys County Council councillors were told at a Cabinet meeting on 8 April, that the authority were heading towards surplus of £824,000 on their revenue budget for 2024/25 and, following movements from specific reserves, the underspend will rise to £924,000 on their £341.6 million budget for last year.

This is a slight improvement on the £894,000 surplus which had been predicted at the end of December – and a massive improvement on the £3.938 million defect the council was forecasting to post on its budget at the end of September.

Despite the financial good news, Cabinet member for connected Powys, Cllr Jake Berriman raised concerns over USA President, Donald Trump’s global tariffs saying he was “concerned at the trade war that is breaking out and the implications that might have on us.”

“I want to be assured that we are actively running those (scenarios) in our overall risk register on the effect it could have on our finances and hone any responses accordingly.”

Cabinet member for finance, Cllr David Thomas said: “With regard to President Trump’s trade war, in many ways it might have an adverse effect on some of our finances as it could create a slowdown in growth forecast of the economy.

“But that in turn could tempt the Bank of England to reduce interest rates that could be helpful particularly in regard to the capital budget.”

Cllr Thomas had “no doubts” there would be a “significant increase” to inflation in the country as a consequence of the decisions made in the White House, and that the council needed to be aware of the problem.