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The vast majority of customers in the UK plan to “buy British” about the concerns that imported products will raise the price after Donald Trump’s comprehensive tariffs, according to data that underline the impact of the US president’s trade war.
About 71 percent of people said they wanted to support businesses in the UK by buying more items that were “done in Britain” after Trump imposed a 10 percent tax on British imports this month, Barclays said on Tuesday.
About two -thirds of customers were concerned that imported products would become more expensive, according to the survey conducted on behalf of Barclays by Opinium Research, and two in five were already looking for alternatives made by the United Kingdom.
UK products are subject to 10 percent of US import fees, steel and cars facing a 25 percent fee. Tariffs are being set in 10 percent of EU goods during the current 90-day pause in “reciprocal” tariffs and amount to 145 percent for products from China.
The Bank of England’s policymakers and economists have warned that the tariffs, which issued unrest in the financial markets and aroused fear of a global recession, will hit the UK growth. But their effect on inflation remains unclear, given how other countries can respond.
Chancellor Rachel Reeves, who is looking at a global role in building trade alliances in the wake of tariffs, refused to support a “British campaign” last week.
“As for the ‘buying of the British’, I think everyone will make their own decisions. What we don’t want to see is a trading war with Britain with internal views,” she told the Municipal House.
If “every country in the world decided that they just wanted to buy things produced in their country, this is not a good way forward,” Reeves said, adding that the United Kingdom had “benefited greatly” from access to global markets, and its continuation was in our national interest.
Uncertainty about the impact of tariffs can affect consumer spending since the beginning of this year. Data from Barclays on Tuesday showed that despite being affected by Easter falling in March last year and in April this year, consumer spending increased by an annual rate of 0.5 percent in March, from 1 percent in February.
Last month’s increase was promoted from a 2.2 percent increase in non -food expenditures, including 13.4 percent jumps in garden centers and 11 percent in health and beauty.
Karen Johnson, the head of retail at Barclays, said that consumers are feeling the pressure of growing bills and “being aware of the impact that the latest global events on their finances may have.” However, she pointed out the “green shoots” like “the warmest weather and the longest evenings encouraged consumers to invest time and money in gardening and DIY”.
Official figures published on Friday showed production in consumer services, such as restaurants and shops, increased by 0.6 percent to three months to February, the fastest pace in one year.
The figures suggested a return of expenses after a 2024 disappointment despite the increase in solid wages.
Separate data released on Tuesday by the British Retail Consortium, a trade body, indicated that retail sales increased by an annual rate of 1.1 percent in March. This was a 12-month average of 0.6 percent, despite the sales depressed from late Easter.
