Consumer confidence in the UK has taken a hit amid the possibility of a global trade war between the US and the rest of the world.
The British Retail Consortium (BRC) found that consumer expectations over the next three months of the state of the economy plunged from -35 to -48 this month.
BRC chief executive Helen Dickinson said: “It is unsurprising that consumer expectations for the economy plummeted to a record low [after the tariff announcement].”
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“Even with a pause on many of the US tariffs, business and consumer confidence remains fragile,” Dickinson added.
Consumers’ expectations over the next three months on their personal financial situation worsened to -16 in April, down from -10 the month before, while their personal spending slipped from +11 to +10.
Earlier this week, Chancellor Rachel Reeves announced the government was launching a review in its low-value imports scheme, which currently allows online retailers to bring goods worth up to £135 into the country without paying customs duties.
Dickinson welcomed the news and said: “A review of this policy, which was designed to reduce the burden on low volume, low value imports, was already needed.
“With retailers seeing a rise in the number of potentially non-compliant products entering the UK market, it’s even more critical now.”
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