Cost-cutting and price increases imminent as almost three-quarters (71%) of UK retailers have already lost profits as a result of the tariffs impact. Nine in ten (90%) fear the impact it will have on their business over the next 12 months, according to a new survey. 81% plan to increase prices to offset the tariff impact.
The research, from Enable, shows that nearly a quarter (22%) are ‘extremely concerned’ about the impact tariffs will have on their business. The figures come on the day that US president Donald Trump announced new tariffs for 92 countries, with rates ranging between 10-41%.
Cutting costs and scaling back
In addition to raising prices retailers are also considering more fundamental moves to cope with the tariffs they face. 42% are planning to cut costs elsewhere, while 42% are considering scaling back or withdrawing from high-tariff markets entirely.
Retailers also fear the impact on tariffs on customer relationships, with 87% fearing customer sensitivity to tariff-related price changes and 93% of businesses worried about customers reacting negatively to price increases.
Fast response required
Andrew Butt, founder and CEO of Enable, said retailers need to be able to react quickly. “Organisations that can rapidly assess tariff impacts, model response scenarios, and execute changes will be best positioned to protect margins and establish a competitive market advantage,” he said.
Earlier this week, Adidas warned of tariff-fuelled cost rises of up to €200m during the rest of this year.
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