Which on a regular basis objects will see value hikes after Donald Trump revealed his international tariffs
Donald Trump’s previously announced tariffs on all goods imported to the US are set to come into effect immediately – and prices in the UK could be impacted as a result
Donald Trump has trumpeted his massive new tariffs on all imported goods to the US, but thriftier Brits could feel the pinch as they do their weekly shop.
On Wednesday, the orange manbaby gave the green light to a tax blitz on imports from all corners of the globe, calling it a ‘Liberation Day’ special, meaning goods from the UK will get slapped with an extra 10% at customs as they enter America.
Despite the stateside shocker, Downing Street has not hit back with tit-for-tat tariffs just yet, and Prime Minister Keir Starmer assured Parliament this week he would be taking a “calm, pragmatic approach” and steadfastly “keeping our feet on the ground”.
Yanks are bracing for blowback on their wallets with higher-priced imports and the inflationary impact is gonna sting worldwide.
Here’s a look at everyday items that might end up costing more dosh thanks to Trumponomics:.
Cars
Trump has introduced a whopping 25% tariff on all automobiles and their parts. This comes into effect on April 3.
A number of top-tier car manufacturers, particularly premium ones like Mercedes Benz and BMW, sell a lot to the States. They are likely to take a hit from Don’s duties and might well balance the books by jacking up prices for UK buyers.
The Institute For Public Policy Research (IPPR) researchers issued a stark warning that these car tariffs could “completely destabilise” the sector, with British icons Jaguar Land Rover and Mini potentially in the firing line.
The thinktank suggested that the Government should incentivise Brit motorists to purchase domestically-produced electric cars to offset losses in the export market. Ideas included slashing VAT on public charging and offering grants to low-income buyers.
Mortgages
Global economy inflation could directly influence UK interest rates, which in turn affects your mortgage payments. If the Bank of England, the rate setter, spots ongoing instability in global financial markets, it’s less likely to slash rates next month.
Myron Jobson, Senior Personal Finance Analyst at Interactive Investor, shed some light: “If tariffs contribute to higher inflation, central banks may be forced to tighten monetary policy, which can weigh on bonds and borrowing costs. This could impact everything from mortgage rates to corporate investment, potentially slowing economic growth.
“For investors with exposure to US equities – either directly or through pension funds and ISAs – this could translate into market turbulence. Any sell-off in US stocks could drag down the performance of funds with heavy US exposure – not least global funds as they typically have a substantial weighting to US equities.”
Cans and kitchen foil
Trump’s recent tariffs on aluminium imports to the US, which kicked off last month, could also affect the price of foil, kitchenware and drinks cans sold here in the UK.
This is because firms that produce aluminium-based products and ship them globally might pass on the increased export costs to consumers and businesses in the UK, leading to steeper prices. Other sectors that heavily rely on aluminium-based goods, like construction, would also feel the pinch.
Tariffs on other countries means other items in the UK could go up in price.
Given how much the UK depends on foreign products, a whole array of items on British supermarket shelves could also see a price hike.
For instance, it’s estimated that 48% of all food consumed in the UK is imported, with a large chunk of that coming from the EU, which has just been slapped with 20% tariffs on all exports to the US.
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