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How Trump’s trade tariffs could influence the costs of a weekly store in Great Britain

How Trump’s trade tariffs could influence the costs of a weekly store in Great Britain

Donald Trump Has the tariffs accumulated by the USA European Union Will be “definitely passed” – and warned that Great Britain could be next.

The US President said that Great Britain was “not unanimous” when it comes to the trade, but he thought a deal could be “worked out” to avoid that tariffs were imposed.

“We will see how things work. It could happen with them, but it will definitely happen with the European Union, I can tell you that,” he said.

After Trump initially announced about what he described as questions of illegal migration and drug smuggling, it comes after the weekend tariffs in Canada, Mexico and China. Trump said on Monday that he had paused tariffs for a month After negotiations at the last minute between the leaders and Mexico.

However, the tariffs against China came into force overnight Beijing to reciprocate with your own measures.

After tariffs were previously described as a “nice thing”, it should not be a surprise that Trump would impose considerable tariffs on the trading partners, even if it sends shock waves through the global economy.

But how could these measures affect British consumers? Even if direct tariffs against Great Britain are avoided, how could taxes have affected the average supermarket business from the EU on goods from the EU?

A tariff is a tax that is charged for foreign goods, which is paid to the government of his home country by the import business.

As a rule, they are less popular with more advanced economies, since they often lead to reduced trading, higher prices for consumers and retaliation from abroad-for example, a tit-for-tat trading war of the retaliation tariffs.

While Trump listed drug trafficking and illegal migration as reasons for tariffs in China, Canada and Mexico, he also said that he would like to reduce the US trade deficit and increase the domestic production industry by imposing a punishment for foreign imports that theoretically impose theory of theory. The least – encourages the Americans to buy more domestic products.

On Saturday, Trump confirmed that Mexican and Canadian goods were subject to 25%, while imports from China would be made with a delivery of 10%.

In a statement published on Monday on his social platform of truth, however, Trump explained that he and Mexico President Sheinbaum agreed to mutually impose tariffs illegal fentanyl and illegal migrants. Trump and Trudeau have worked out a similar deal.

However, Trump has not used the taxation of Chinese imports that are already expected to affect the British economy because it affects the global trading system.

Last month, the International Monetary Fund warned economic policy that “inflation will probably drive higher at short notice” and that a “new wave of tariffs” could reduce the global investments and disrupt supply chains.

President Donald Trump speaks to reporters alongside Air Force One, after he was on Sunday, February 2, 2025, at the common basis of Andrews, MD.President Donald Trump speaks to reporters alongside Air Force One, after he was on Sunday, February 2, 2025, at the common basis of Andrews, MD.

Donald Trump’s proposed tariffs in China and Canada are expected to have a global impact, including in the UK. (Alamy)

Economists and CEO of the Avrio Institute Dr. Shawn Dubravac said to Yahoo News: “If the financial markets expect a higher inflation that will lead to higher credit costs. And higher credit costs and probably influence every sector of the economy.

“Higher costs in one area could lead to higher prices elsewhere, so that buyers in Great Britain could see higher prices in the grocery store.”

Professor Guido Cozzi, chairman of economics at the University of St. Gallen in Switzerland, said Yahoo News that Trump’s tariffs “increased costs for certain raw materials and goods that ultimately find their way into British supermarkets”.

As the largest trading partner of the UK, all tariffs aimed at European exports could “disrupt the supply chains that rely on the UK,” warns Dr. Danilo Spinola, a senior lecturer in economics at Birmingham City University.

This could possibly increase the costs for British companies, especially in the automotive, machine and agricultural industry that could be passed on to British consumers, he says.

“In addition, market uncertainty in relation to trade policy could lead to fluctuations in the British pound in terms of consumer prices, especially for imported goods,” added Dr. Spinola added.

“In view of the Brexit, the effects are even more extensive – since we can no longer rely in Great Britain to free access to the European market.”

Brussels, Belgium - February 3: The British Prime Minister Keir Starrer speaks on February 3, 2025 in Brussels, Belgium, at a press conference in the NATO headquarters. The British Prime Minister Keir Starrer meets on Monday during the NATO headquarters and the European Council of EU leaders. (Photo by Omar Havana-Wpa Pool/Getty Images)Brussels, Belgium - February 3: The British Prime Minister Keir Starrer speaks on February 3, 2025 in Brussels, Belgium, at a press conference in the NATO headquarters. The British Prime Minister Keir Starrer meets on Monday during the NATO headquarters and the European Council of EU leaders. (Photo by Omar Havana-Wpa Pool/Getty Images)

Keir Starrer was in a bond when he tried to avoid tariffs from the USA and at the same time strengthen trade relationships with the EU. (Getty Images)

Prof. Cozzi says that the situation could be “complicated”; If European manufacturers were losing access to the US market due to tariffs, they could try to shift their excess stocks in Great Britain.

“In the short term, this could mean lower prices for some goods. At the same time, we see when European exporters have higher costs when selling to the USA in British supermarkets,” he adds.

Trump’s optimistic attitude towards the EU could also cause problems for Keir Starrer, which is The attempt to strengthen economic relationships with both blocks When he meets the EU leader in Brussels today and in the USA.

Irina Surdu-Nardella, professor of international economy and strategy at the Warwick Business School, suggests that he may have to “select a page”.

“The reality is that the EU countries will still try to sell to the British consumer, whose willingness to pay remains high compared to other European nations,” she said to Yahoo News.

“In the meantime, it can prove that the separation from the EU positions the United Kingdom better in order to concentrate on strengthening trade relationships with the USA in the areas in which the United Kingdom focuses most: defense and energy. “

The ministers have previously proposed that Great Britain could avoid US tariffs because America has no trade deficit with Great Britain – but Trump has not excluded the opportunity.

Most recent analysis by the National Institute for Economic and Social Research (NiesR) It warned that industries such as fishing, oil, mining and pharmaceuticals “be particularly susceptible to tariff changes”.

Assuming that a tariff of 10% was included in the UK, the institute said that British exports could decrease by up to 22 billion GBP.

City of London Skyline with 20 Fenchurch Street, lovingly with the nickname of Walkie -Talkie, which reflects the sun, which is reflected in the foreground on January 30, 2025 in London, Great Britain. The city of London is a city, a ceremonial county and a local administrative district that contains the primary Central Business District CBD from London. The city of London is generally described as simple, since the city is also colloquially known as Square Mile. In the past ten years, the city's architecture has grown up with skyscrapers, which fill the now overcrowded skyline and increases the scaling with glazing members. (Photo by Mike Kemp/In pictures about Getty Images)City of London Skyline with 20 Fenchurch Street, lovingly with the nickname of Walkie -Talkie, which reflects the sun, which is reflected in the foreground on January 30, 2025 in London, Great Britain. The city of London is a city, a ceremonial county and a local administrative district that contains the primary Central Business District CBD from London. The city of London is generally described as simple, since the city is also colloquially known as Square Mile. In the past ten years, the city's architecture has grown up with skyscrapers, which fill the now overcrowded skyline and increases the scaling with glazing members. (Photo by Mike Kemp/In pictures about Getty Images)

While the tariffs in Great Britain would harm, experts say that the nervous nature could contribute to alleviating the blow. (Getty Images)

Since lower US imports lead to a reduced US dollar, investors who buy the currency united with the currency could.

Higher prices for imported goods are likely to increase the prices for domestic substitutes in Great Britain, the imports of which make up a third of the country’s GDP, adds the institute.

If Trump imposed the tariffs especially for British goods, says Prof. Cozzi: “British producers who are sold to the USA would become less competitive. This could mean lower wages, job losses and lost income.”

However, Prof. Surdu-Nardella suggests that the effects on the United Kingdom are “relatively reduced” and limited to industries such as fishing and mining, since the “service-oriented” type of British economy, which mainly exports banking and consulting services for the USA exported, “protects it significantly”.