Savers and pension holders have been warned of the risks of making “knee-jerk” decisions, after Donald Trump unveiled tariffs on countries globally.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that during times of market volatility, it is important that “eyes are kept on long-term investment horizons”.

She said that, in general, investors can help navigate volatility by ensuring portfolios are “well diversified, without too much concentration on a particular market, and with money spread across different asset classes and geographies”.

Ms Streeter added: “The strategy of drip-feeding investments by gradually allocating funds can also help mitigate risks and can pay off in uncertain times.

“It means investors may be able to take advantage of lower prices and benefit during a recovery, to help smooth out sharp market movements over the longer term.”

Some pension savers may also be experiencing fluctuations in their funds.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The market turbulence caused by (Mr) Trump’s tariffs will have unsettled many pension investors, but it is important not to panic.

“Pensions are a long-term game and over the years, periods of market upheaval are to be expected.

“Making knee-jerk reactions such as changing investment strategy or cutting back on contributions can crystallise losses and make it harder for your fund to recover and this can impact your retirement income.

“It’s important to make sure that your strategy is well diversified to protect your pension from these ups and downs.”

Ms Morrissey said some people nearing retirement may choose to put off drawing money from their pension pot until the situation becomes “more settled”.

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She added that some people coming up to retirement may opt to buy a retirement annuity, which gives a guaranteed income.

The right financial option for someone will depend on individual circumstances and people will need to weigh up the advantages and disadvantages. Some people may want to consider financial advice or getting guidance from Government-backed body Pension Wise.

The UK’s 10% tariff rate puts it in the lowest “baseline” category and Prime Minister Sir Keir Starmer has indicated he would fight for a trade deal with the US.

In the mortgage market, Hargreaves Lansdown said there could be a risk that inflation means the Bank of England keeps the base rate higher for longer.

But it also said that the Bank could be under pressure to make more cuts, to support growth.

The uncertainty could make it more vital for people to shop around for a mortgage deal early.

Jason Hollands, managing director of investment platform Bestinvest by Evelyn Partners, said: “While it can be tempting to make big adjustments to an investment portfolio amid uncertainty and upheaval, sometimes the best course of action is to pour yourself a stiff drink, sit tight and wait for the dust to settle rather than make knee-jerk decisions.

“If you had a portfolio that was already well-positioned ahead of this to include gold, more value stocks in more defensive sectors and government bonds, you’d be having less of a rollercoaster ride.

“That’s the case for always consistently having a well-diversified portfolio, rather than trying to cobble together one in haste when markets are very volatile and may well remain so over the coming days.”

He said the Bank of England “faces a dilemma – on the one hand, tariffs are going to lift the prices of some goods and it has a job to keep the lid on inflation so may keep rates higher for longer, but on the other hand it will want to support the economy from sinking into recession.

“My hunch is that they will regard price spikes related to the implementation of tariffs as a one-off shock and focus more on the risk of economic stagnation. We could therefore see interest rates come down more rapidly than expected.

“The hit to the economy from a global trade war could leave (Chancellor) Rachel Reeves’ plans in tatters”.

Mr Hollands suggested one option might be to freeze tax allowances and thresholds beyond 2028, “leading to more and more people slipping deeper into income tax by stealth”.