Just about everyone thought it was a bluff. Top analysts from the biggest banks on Wall Street said it was highly unlikely. Stocks were trading like it wouldn’t happen. Some companies built contingency plans but they weren’t exactly rushing to make changes.

U.S. President Donald Trump said on Sunday that although Britain was "out of line" when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: "I think that one can be worked out".

Experts warned that tariffs could increase construction costs and lead to higher mortgage rates, further eroding affordability in the U.S. housing market.