UK firms are raising prices even before trade tariffs come into force

[pellinore]

Nearly four in ten UK businesses are hiking prices in response to the threat of tariff hikes as fears grow over a global trade war kicked off by US President Donald Trump, according to a survey.

A poll of 1,500 businesses by banking giant HSBC found 39 per cent are increasing prices in anticipation of higher tariffs.

It also revealed that half of firms are shifting their export markets to countries with lower trade barriers in an effort to side-step the worst of the hit from any trade war.

Firms are also planning to adapt their supply chains to weather the storm, with 41 per cent saying they will diversify and almost a third (31 per cent) looking to bring the chain back in-house, while 41 per cent said they would expand the products and services they sell to help offset any hit.

UK firms are raising prices even before trade tariffs come into force | The Independent

Edited February 7 by pellinore

[L.A.T.1961]

47 minutes ago, pellinore said:

 

It also revealed that half of firms are shifting their export markets to countries with lower trade barriers in an effort to side-step the worst of the hit from any trade war.

UK firms are raising prices even before trade tariffs come into force | The Independent

This point is important and its effects interesting.

Those wanting to maintain sales will look elsewhere to sell, but breaking into new markets is not easy.

Usually it is accompanied by cheaper prices to gain market share.

So if Trump does keep tariffs then places like the UK should benefit as prices of goods reduce.

I noticed that Canada wants to re open trade talks with the UK, after Trumps arrival, as a way of increasing their sales after previous talks collapsed.

I imagine their trade demands might be softened to get a deal over the line.😉

Cheaper goods and a trade deal, an unexpected bonus for the hapless Labour Government.

 

[stevewinn]

17 hours ago, pellinore said:

A poll of 1,500 businesses by banking giant HSBC found 39 per cent are increasing prices in anticipation of higher tariffs.

The quoted is the Key point in the whole article which gives basis to write the article.

increasing prices in anticipation aka profiteering beforehand. - is that not illegal in the UK?