Firms hike prices as businesses fear Trump tariffs will trigger global trade war Nearly four in 10 UK businesses are raising their prices in response to the looming threat of increased tariffs, as concerns mount over a potential global trade war instigated by US President Donald Trump, a survey has revealed.
The survey's results, which were gathered in November for the bank’s 'going global for growth' report, come in the wake of Mr Trump's initial salvo over the weekend, imposing 25% trade tariffs against Canada and Mexico, and 10% on Chinese imports.
The survey also disclosed that half of the companies are redirecting their export markets towards countries with fewer trade barriers, aiming to avoid the worst impacts of any potential trade conflict.
The survey also points out that despite the uncertainties surrounding Brexit, the EU continues to be the top region for UK companies engaging in buying and selling goods and services abroad, with 72% of internationally engaged companies targeting the bloc.
Earlier this week, Diageo, the company behind Johnnie Walker and Guinness, issued a stark warning that potential US tariffs floated by Mr Trump could inflict a $200m (£161m) dent in their profits.
