UK consumers plan to ‘buy British’ as Trump’s trade war bites, survey shows

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The vast majority of UK consumers are planning to “buy the British” about concerns that imported products will flourish in prices after Donald Trump’s tariff, according to data that emphasizes the impact of the United States’s trade war.

Barclays said on Tuesday that about 71 percent of people said they wanted to support the UK business by buying more elements that were “made in Britain”, after Trump imposed a 10 percent tax on British imports this month.

About two -thirds of consumers was concerned that imported products would be more expensive, according to the survey conducted on behalf of Barclays by opinion research, and two out of five were already looking for alternatives to making in the UK.

UK products are subject to a 10 percent American import sentence, with steel and cars facing 25 percent. Customs duties are imposed by 10 percent on the commodities in the European Union during a 90 -day interruption period on “mutual” customs duties, and up to 145 percent for products from China.

Politics and Economists at the Bank of England have warned that the definitions, which launched unrest through financial markets and raised fears of global recession, will reach UK growth. But its effect on inflation is still unclear, given the uncertainty about how other countries respond.

Chancellor Rachel Reeves, who is looking forward to a global role in building commercial alliances in the wake of definitions, refused last week to support “buying a British campaign”.

“With regard to” buying the British, “I think everyone will make their own decisions. What we do not want to see is a commercial war, as Britain has become an internal appearance.”

If every country in the world decides that they only want to buy things produced in their country, this is not a good way to move forward, “adding that the United Kingdom” has benefited greatly “from reaching global markets, and continuing to do so in our” national interest. ”

The uncertainty about the impact of definitions may affect an increase in spending on consumers since the beginning of this year. Barclays data showed on Tuesday that although it was affected by the decrease in Easter in March of last year and in April this year, consumers’ spending increased by an annual rate of 0.5 percent in March, a decrease of 1 percent in February.

Last month, the increase was driven by an increase of 2.2 percent in the non -axial spending, including the 13.4 percent jumps in park centers and 11 percent in health and beauty.

Karen Johnson, head of retail in Barclays, said that consumers were feeling the pressure of increasing bills and “to realize the impact of recent global events on their financial resources.” However, “green buds” noticed that “the warmer weather and the longest evenings encouraged consumers to invest time and money in gardening and DIY.”

The official numbers published on Friday showed production in the services facing the consumer, such as restaurants and shops, increased by 0.6 percent in the three months to February, which is the fastest pace per year.

The numbers suggested a recovery in spending after 2024 disappointments despite the growth of strong wages.

The separate data published on Tuesday by the British Retail Union, a commercial body, showed that retail sales increased by an annual rate of 1.1 percent in March. This was higher than an average of 12 months of 0.6 percent, although sales suffer from depression by late Easter.