Price increases are the most likely response to US tariffs by affected firms, according to a survey conducted by the British Chambers of Commerce (BCC).
The survey found that 32% of firms with trade exposure to the USA say they will increase prices in response to the tariff.
Alongside increasing prices, 15% said they would seek alternative suppliers, while 13% said they expected to absorb the costs.
Shevaun Haviland, Director General of the BCC, said:
‘This data sets out very clearly the immediate impact of US tariffs and the extent of business concern. With retaliatory moves by other countries likely to escalate,the prospect of a global trade war is increasing, alongside a widening of the economic fallout.
‘But there is strong support for the government’s approach to continue negotiation and not immediately retaliate. We believe a deal can be done as the US has already been open to talks. But firms don’t want to have all our eggs in one basket and want to see closer trading relationships with the EU and other markets.
‘They do not consider this to be an either/or scenario and we must continue to pursue a three-pronged approach of better trade relations with the US, the EU and the Indo-Pacific region.
‘This survey also gives an early warning sign on the economic impact in the UK of these tariffs, with price increases being the most likely response by firms.’
Internet link: BCC website
