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Gloucestershire Business News

Early signs of tariff war hit the shelves

The British Chambers of Commerce (BCC) has praised Westminster on its move to pause the existing 10% UK Global Tariff on dozens of products – just as the impact of Donald Trump's trade war comes home with emerging evidence of price rises on products for UK consumers.

Sony announced on Tuesday that the UK retail price for a Playstation5 gaming console will be increased by 25%, to £429.99, as the effects of the USA's trade impositions pressure the technology maker to take offsetting measures due to the "challenging economic enviroment".

Responding to the news that the UK Global Tariff is being paused on dozens of products, William Bain, Head of Trade Policy at the BCC, said: "Tariffs are an additional cost burden that often have to be absorbed by firms or picked up by consumers and manufacturers. Given the current uncertainty in global trade, these extended reductions in import duties on everyday consumer goods from orange juice to seafood are welcome and could help reduce the cost of living."

He added that the move will also help keep inflation under control, while sustaining economic growth and improving living standards "for the British people in this age of uncertainty in global trade."

Game developer Sony cited "high inflation and fluctuating exchange rates" for its move to lift prices in Europe, the Middle East and Africa, as well as Australia and New Zealand, though it did not signal any changes for prices in the USA.

The maker is not alone: other companies have signalled that adding tariff-related surcharges to customer bills and shelf prices in the UK due to the uncertainty created around Trump's levies may be unavoidable.

However, Sony has stated that the price in the UK for the standard PlayStation 5, which was released in 2020 and comes with a Blu-ray disc drive, will remain unchanged - as will the price for the PS5 Pro version, which was released last year.

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