Cheap Chinese Imports Flood UK, Lowering Inflation
Update: 2025-12-29
Description
The UK may soon experience a surge in affordable Chinese imports due to Donald Trumps trade war with China, which is driving down inflation. Chinas trade surplus has reached a record high of one trillion dollars, despite US tariffs reducing their exports by 29%. Instead, exports to the UK and Europe are increasing, with UK exports from China rising by 9% and EU exports by 15%. Experts predict more Chinese goods will reach the UK, potentially lowering import prices due to sterlings strength and the trade shift. The UKs inflation rate is currently 3.2%, expected to reach the 2% target by mid-2026, with recent budget measures potentially reducing it by up to half a percentage point. China is already the UKs second-largest import source, with £70 billion worth of goods last year, mainly cars and telecom equipment. While the government aims to protect UK steelmakers from cheap Chinese metal, lower import costs could benefit consumers. Barclays economist Jack Meaning anticipates import costs to ease next year due to slower global growth, potentially alleviating rate cut concerns. Checkout Solipillow.com
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