Why US tariffs could be good news for brands in the UK Home Interest sector
From his claim that immigrants were eating the cats to telling the world that injecting disinfectant would be an effective cure for Covid-19, Donald John Trump has come out with some absolute pearlers over the years.
Recently, mere weeks after being re-elected, Trump declared that “Tariff is the most beautiful word in the dictionary.” Which seems odd given that within the pages of the OED, you’ll find such bon mots as ‘serendipity’, ‘sibilance’, ‘mellifluous’ or even ‘verisimilitude’.
Joking apart, Trump’s love of tariffs is likely to have serious impacts on global markets. Having already imposed additional levies on imports from China – and with Canada and Mexico given a 30-day stay of execution – there’s also talk that Trump may also have his sights on goods imported from the EU.
However, while such protectionist policies might spell trouble for some economies, they could create opportunities for UK brands and manufacturers, including those in the home interest sector. Here’s how…
The Brexit Advantage
While Brexit brought us its own set of challenges, the fact that the UK is no longer part of the EU might work in our favour in this situation. Because if Donald does slap tariffs on goods from Europe, those exported from the UK to the US could sidestep these levies entirely – assuming we can broker a favourable trade deal with our American friends.
This could make UK-manufactured products such as Fromental’s decorative wall coverings or Julian Chichester’s timeless furniture designs significantly more competitive than their European counterparts, giving British home interest brands a crucial advantage.
A Boost for UK Exports
At the same time, UK brands could benefit from reduced competition from China, the EU and other markets where tariffs are imposed. Faced with higher prices for purchases such as furniture, and home appliances, Americans could consider goods from UK manufacturers as a more cost-effective alternative.
Brands like AGA Rangemaster could see a surge in US demand as retailers and homeowners look for high-quality, tariff-free alternatives. Businesses such as Dewsbury-based Jay-Be – an award-winning manufacturer of ethically produced sleep solutions – could also benefit from this shift.
A shift to ‘Buying British’
Trump’s tariffs could also disrupt global supply chains, making imported goods more expensive and less attractive in the UK market. This could see consumers opting for domestically produced furniture and home accessories over pricier imports. As a result, brands and retailers like The Cotswold Company, Sofas & Stuff, and Barker & Stonehouse could all benefit from a renewed focus on ‘Buying British’.
Benefits on both sides of the pond
Of course, only time will tell how extensive the impact of US tariffs will be. However, if the UK is spared, home interest brands should be prepared to seize the potential opportunities.
With the right trade agreements in place, British businesses could find themselves in a prime position to expand their footprint within the lucrative US market, while also enjoying a resurgence of domestic demand.
In short, UK home interest brands may find that rather than posing a threat, Trump’s tariffs may represent an unexpected opportunity to thrive on both sides of the Atlantic. Beautiful, you might say.
