BOE survey: only 12% of UK firms view US import tariffs as source of instability

According to the latest Bank of England (BOE) research, only a small share of UK companies are concerned about US trade policies. The survey reveals that just 12% of businesses cited actions by American President Donald Trump as a primary source of instability in May, down from 22% the previous month.

In April, the US imposed tariffs on imports from the UK. However, in early May, Britain secured partial relief. While deal specifics remain under negotiation, most British companies appear unfazed — approximately 70% of surveyed firms anticipate no adverse pricing impact from the duties.

Nevertheless, the BOE survey reveals that 22% of businesses expected lower sales over the coming year, 20% planned to scale back investment, and 15% anticipated cutting prices.

The Bank of England says business representatives also predict wage growth of 3.7% over the next year. This is the lowest level since the survey started in 2022.