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PERSONAL FINANCE ANALYSTS SAY SOME SOME PRICES IN THE UK MAY ACTUALLY COME DOWN AFTER US PRESIDENT DONALD TRUMP ANNOUNCED BOMBSHELL GLOBAL TARIFFS INCLUDING A 10% IMPORT TAX ON UK GOODS

11:25, 03 Apr 2025Updated 09:20, 06 Apr 2025 Donald Trump has unveiled a wave of sweeping global tariffs, including a 10% import tax on all UK goods going into the US, starting April 5. The

US President also announced a 20% tariff on EU goods, in what he dubbed as “Liberation Day” for Americans. Some countries were hit with even steeper import taxes, including Cambodia which

has been slapped with 49% tariffs, Laos with 48%, Vietnam with 46% and Myanmar with 44%. The new measures come on top of a previously announced 25% tariff on all cars imported to the US, as

well as import taxes on steel and aluminium. Prime Minister Keir Starmer has acknowledged there will be an economic hit to the UK, and has indicated that Downing Street will continue to

fight for a trade deal with the US. The PM said: “Clearly, there will be an economic impact from the decisions the US has taken both here and globally.” The FTSE 100 Index dropped sharply on

opening, falling 122.4 points or 1.4% in the first few minutes of trading. The Dax in Germany and the Cac 40 in France were both down more than 2%, while markets across Asia slumped

overnight, with the Nikkei in Japan down nearly 3% and China’s Hang Seng 1.5% lower. When tariffs are introduced, the importers of the goods are the ones who pay extra - so in this case,

American companies. Donald Trump argues that this will encourage US citizens to buy more American-made goods, which he claims will help boost the US economy and create more jobs. Article

continues below But economists argue that tariffs mean companies will put up prices in return to mitigate the extra costs - so customers ultimately end up paying more. If prices go up,

analysts say this could push up global inflation, which is the measure of how quickly or slowly prices are rising. Economists say car prices may rise following the new 25% tariffs on motor

imports, as UK manufacturers rely heavily on sales in the US market - so they may look to mitigate these costs with price increases in the UK. The Institute for Public Policy Research think

tank predicts more than 25,000 jobs in the UK car manufacturing industry could also be at risk, with one in eight UK-built cars exported to the US. GET THE BEST DEALS AND TIPS FROM MIRROR

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Mirror's Money newsletter here for all the best advice and shopping deals straight to your inbox. Kitchenware, foil and drinks sold in the UK could also become more expensive, as a

result of the tariffs on aluminium and steel imports, while the UK pharmaceutical industry is also very dependent on trade with the US. But analysts say some prices in the UK may actually

come down. Amy Knight, personal finance expert at NerdWallet UK, said countries that have been slapped with far higher tariffs than the UK, such as China and Vietnam, may look to diversify

their trade strategies and send more products to the UK. She said: "If goods they would have sold to the US are diverted to the UK instead, supply here will increase, pushing prices

down for some items." One industry that could get cheaper is clothing and textile, according to David Kindness, tax expert and personal finance writer at Best Money. He said:

"Let’s say US tariffs hit Chinese exports hard. That would open the door for UK clothing and textile manufacturers to fill the gap in the American market. "If they get a boost in

exports, production might scale up, and with higher volumes often come lower costs. Some of that savings could trickle back into the domestic market, especially through surplus goods or

off-season items. It wouldn’t be a massive drop in price, but it could show up in specific segments." Oliver Chapman, Group CEO of OCI, a global supply chain procurement company, said

electronics, computers, home appliances, entertainment systems, gaming consoles, and other produced sourced from Asia, could also become cheaper. He said: “Global supply chains will

certainly be disrupted as a consequence of the US imposing tariffs on imports from China, in one form or another." Cas Paton, Founder and CEO of OnBuy, said: "With the US imposing

hefty tariffs on Chinese goods, we're likely to see Chinese manufacturers look elsewhere to sell their products – and the UK could be one of the biggest beneficiaries. “From consumer

electronics and household items to clothing and even machinery, many of these goods could become more competitively priced here as China redirects supply away from the now less-profitable US

market. “It’s not just China either – other global exporters affected by the US tariffs, from car and electronics manufacturers in Asia to food and drink producers in Europe, may also

increase focus on the UK. “This could mean better deals for British consumers across a range of categories – from smartphones and laptops, to wine, cheese, and even kitchen appliances – as

brands look to stay competitive and win market share. Article continues below “However, there's a lot of uncertainty and consumers are under ever-increasing financial pressures, whether

it’s council tax, food, transport, or utility bills, the cost pressures on British people are ever increasing. With no end in sight, we want to help Brits to spend smarter." READ MORE:

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