UK consumers are likely to face higher prices on a range of goods following new tariffs introduced by US President Donald Trump, particularly on products made in or routed through China. Furniture, especially flat-pack and MDF-heavy items, could see notable price increases as Chinese exports dominate the global furniture market.
© Nicoleta Raluca Tudor | Dreamstime
Experts warn that even though the UK is not directly imposing tariffs, the ripple effects of US trade policies will be felt globally.
However, some products may temporarily become cheaper. Economist Maxime Darmet of Allianz Trade said: 'There will be increased competition for cheap Chinese exports,' as goods originally destined for the US are redirected to Europe, leading to short-term deflation in areas like toys, lighting, and basic apparel.
Despite potential short-term benefits, Amy Knight of NerdWallet UK noted that a surge in low-cost imports could hurt British manufacturers and retailers. 'Any short-term fall in the price of tech, home wear and apparel could ultimately turn into bad news for Britain's economy,' she said.
The impact on complex goods may be seen within weeks, while more basic items could take a few months to reflect changes. UK inflation, already at 2.8 per cent, could be affected further, potentially influencing interest rate decisions by the Bank of England.
Source: www.inews.co.uk