Trumps trade war rocks consumer confidence, BRC finds
The data was collected days after US president Trump announced worldwide tariffs, between 4 and 7 April
Consumer expectations in the UK dropped significantly to -48 in April, down from -35 in March, according to the latest BRC-Opinium data.
The data was collected days after US president Trump announced worldwide tariffs, between 4 and 7 April.
The personal financial situation worsened to -16 in April, down from -10 in March, while the personal spending overall fell slightly to +10 in April, down from +11.
However, the personal spending on retail rose to +3 in April, up from 0 in March, and the personal saving index also rose slightly to -4 in April, up from -5. The BRC said that expected spending on groceries saw the largest increase, with over 4 in 10 expecting to spend more in the coming months, rising to half of the over 55s.
Helen Dickinson, chief executive of the BRC, said: “Even with a pause on many of the US tariffs, business and consumer confidence remains fragile. The risk of higher global prices is an unwanted addition to the £7bn in new costs hitting retailers this year from higher employer National Insurance, increased NLW, and a new packaging tax. Many retailers are also concerned about the risk of cheap Chinese products being diverted from the US to other destinations, including the UK.
“The UK should review the de minimis rules, which allow low-value imports to avoid checks and duties. It is vital the UK’s strict quality standards are upheld to ensure the best outcome for British businesses and consumers.”
