Phones, furniture and fast fashion will soon cost you more - but it's not all bad news (2025)

There will be a number of products which will rise in price for UK consumers following Trump’s tariffs on China, including tech items and car parts.

Although there is a current exemption from the US on smartphones and tech products from China, the US President has suggested this could be short-lived, with further levies expected in future.

Despite the turmoil, experts expect prices for many other products to drop – at least in the short term.

We examine the items that are most likely to increase or decrease and when the impact will be felt.

The items that are likely to increase in price

Tech

Smartphones and laptops, which are often made in Asian countries such as China and Vietnam, are likely to be hit with some of the biggest price hikes.

Despite a current plan put in place, exempting certain items from a 125 per cent tariff and adding a 10 per cent flat tax for items from around the globe, Trump has said this will be temporary and part of a longstanding plan to add to a different, specific levy instead.

Major companies like Apple, Samsung and Microsoft are likely to be affected.

If the cost of sending iPhones, for example, to the US rises, the cost could be passed onto consumers, meaning iPhone prices in the US could rise by hundreds of dollars.

If the tariffs impact the value of the dollar, it could then become more expensive to import iPhones and other devices around the world, and higher prices in UK shops.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “There are likely to be price rises among some products made by big US tech firms, with laptops and phones likely to be hit hard.

“Companies like Apple and Microsoft have supply chains stretching deep into Asia. They don’t just source components from overseas; tech companies have factories in places like Vietnam, China, and Taiwan. The tariffs mean the goods produced in manufacturing bases in Asia will cost more, and that is likely to be passed onto consumers.”

Car parts

Another item that is likely see increases are car parts.

Britain exports more than £6.4 billion worth of cars to the US every year, and it is a critical market for high-end manufacturers such as Jaguar Land Rover, Mini, Bentley and Rolls-Royce.

Previously announced tariffs of 25 per cent are now in effect.

Furniture

Flat-pack or MDF-heavy pieces in particular could also see price increases in the UK. Chinese exports still dominate that category globally.

Fast fashion

Fast fashion, including cotton blends, basics and accessories, could see price increases. Most still originate in or route through China. Margins are already razor-thin; any additional cost will go straight to the consumer.

Other popular brands could also be affected.

The cost of buying a new pair of trainers from leading brands such as Nike and Adidas is set to rise by more than 10 per cent as the sporting apparel giants attempt to offset the cost of Donald Trump’s tariffs.

Both companies manufacture almost half of their footwear in Southeast Asia, in countries such as Vietnam, Indonesia, and China. Retail experts believe that rather than passing all these extra charges onto US consumers, the sportswear brands will spread the additional costs across their products and markets.

This could mean consumers in the UK will face extra costs even though the UK is not levying tariffs.

What items could be cheaper

Although Trump’s tariffs will have several major implications, with many items seeing an increase, a number of products are also expected to fall, at least in the short term.

Maxime Darmet, senior economist at Allianz Trade, believes the swing will, for now, be good for consumers in some areas.

He told The i Paper: “The moves will be deflationary for everyone but the US. There have been big swings in commodity markets – gas prices are down, which is good for the consumer. In the short term, it’s not bad for the consumer.

“In the next couple of months, there will also be increased competition for cheap Chinese exports. They need to offload the excess goods – they’re no longer being sent to the US, so they need to find other markets.”

Fuel prices

Oil prices fell following Trump’s tariffs over fears that a trade war could tip the global economy into recession and shrink the world’s appetite for crude.

The lower the demand, the lower the prices, with Brent crude – one of the benchmarks for oil prices – dropping to around $60 (£45) a barrel last week.

If oil prices continue to fall, this can translate into good news for motorists at the petrol pumps.

However, they have risen slightly since Trump put a 90-day pause on most tariffs, so it remains to be seen what happens next.

Short term fall for toys, clothing and lighting

One expert believes there could be a short-term drop in prices due to a surge in supply, although this may not have long-term positive consequences.

Amy Knight, personal finance and small business expert at NerdWallet UK, said: “Toys, exercise equipment, clothing, furniture and lighting are among the top imports from China into the UK.

“Shipments of Chinese goods destined for the US could be diverted to Britain and Europe with a surge in supply expected to knock down prices here.

“However, any short-term fall in the price of tech, home wear and apparel could ultimately turn into bad news for Britain’s economy. UK manufacturers and retailers would struggle to compete with a higher volume of cheap Chinese imports, harming domestic businesses.”

Pranesh Narayanan, research fellow within IPPR’s Centre for Economic Justice, added: “On the one hand, goods will stop flowing from China to the US. But as they’ve already been produced, China will have to find other markets for them.

“That could mean goods from China coming into the UK, which could make some items cheaper.

“The opposite effect, an increase in prices, is also a long-term threat. That would come further in the future because of the gumming up of supply chains.”

When will the impact be felt?

Mr Darmet said: “Basic consumer goods such as toys, fashion and furniture will be cheaper, but more complex goods – things that are crossing borders many times, like cars, airplane parts – will cross borders multiple times and face higher tariffs. When they end up in the UK, it could be more expensive.”

In terms of how long it will take for people to feel these side effects, Mr Darmet said it will take a couple of months for basic consumer goods, but for complex goods, it potentially could happen in the next couple of weeks.

What could this mean for UK inflation and interest rates

There are concerns that disruption to global supply chains could exacerbate the UK’s struggle with inflation, which is currently at 2.8 per cent – already above the Bank of England’s two per cent target.

Usually, the Bank would raise interest rates, which currently sit at 4.5 per cent, to lower inflation.

However, after Trump’s tariffs, some economists believe they may actually cut them – possibly even 0.5 basis points to 4 per cent.

They argue this would limit the damage to the economy.

Given Trump’s tariff rollback, this could now change. A cut of 0.25 basis points was predicted prior to the tariffs, which may still stand, but what happens in the coming days and weeks could determine what the Bank’s Monetary Policy Committee (MPC) decides to do.

What about US imports to the UK?

Several imports to the UK could also see price increases as a result of Trump’s tariffsif the UK decides to impost retaliatory levies.

If import costs increase, these extra costs could be passed on to consumers through higher prices.

Another way is the fluctuating value of the pound against the dollar, which dictates the cost to UK firms importing goods from abroad.

If the dollar’s value strengthens, as some economists have predicted, import costs could rise for UK firms importing goods.

Oliver Chapman, Group CEO of OCI, a global supply chain procurement company, said: “In terms of imports, we in the UK primarily rely on the US for fuels, industrial machinery, chemicals and raw materials.

“Though food, beverages, and consumer goods make up a mere fraction of American imports into the UK, certain products would burn a bit more in our pockets.”

Specifically, he said tariffs could affect distributors of American beverages such as Maker’s Mark whiskey, Buffalo Trace bourbon, Woodford Reserve whiskey, and American craft beers.

Goods produced by companies like Coca-Cola, PepsiCo, Mondelez, Kraft Heinz and Hershey could also be touched.

Mr Chapman added: “Expect fast-moving consumer goods like Oreos, Heinz baked beans and Philadelphia cream cheese to become more expensive.

“Certain personal and home products are likely to increase as well. Anything by Always, Gilette, Oral-B and Tide comes to mind. Clothing companies like Nike, Levi Strauss and The North are sure to become a bit more expensive, too.

“But, again, this all rests on how long tariffs would be in effect and whether importers would pass the added cost onto their consumers.

“Whatever the case, importers of American products would surely find themselves in a world where the cost of doing business in the UK is simply higher.”