Firms raising prices ahead of trade tariff hikes, report finds Nearly one in four 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.
The results of the survey, which was conducted in November for the bank’s going global for growth report, comes as Mr Trump fired his opening shots over the weekend by slapping 25% trade tariffs against Canada and Mexico, and 10% on Chinese imports.
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.
While firms are hiking prices and taking action ahead of a tariff impact, the HSBC survey showed only 15% said they would reduce their overseas trading activity.
Johnnie Walker and Guinness maker Diageo cautioned earlier this week that Mr Trump’s proposed US tariffs could deal a 200 million US dollar (£161 million) blow to profits.
