The worldwide price punch

Welcome back, Pricing People. This week, we’re going global as we unpack how trade tensions are rippling across economies worldwide. Grab your atlas as we chart the choppy waters of international tariff turbulence.

Tariff Tremors

While we’ve already seen how US tariffs could shake up domestic prices, the aftershocks are being felt far and wide. According to ING, the European Union is bracing for impact – a 25% tariff on EU exports to the US could slash those exports by 19%, knocking 0.33% off the bloc’s GDP. That’s no small change for an economic powerhouse.

Looking at individual countries, Ireland might need more than the luck of the Irish to weather this storm. A study by the Economic and Social Research Institute found that Ireland’s GDP could shrink by a massive 3.7% over the next five to seven years due to the country’s high volume of pharma exports to the US.

Emergency pricing measures 

Over in Canada, retaliatory tariffs are already hitting shopping carts just days after coming into force, with fresh food and toiletries seeing price jumps. In response, grocery giant Loblaw says it’s cutting its price processing time in half, from 12 weeks to just 6, helping suppliers recoup those tariff costs faster.

The Brexit Hangover

And finally, across the pond, the UK is learning some expensive lessons. Five years on from Brexit, research shows the country has suffered a 5% loss in trade with the EU, costing businesses a staggering £37 billion a year. That’s a sobering lesson in the potential pitfalls of protectionism.

One thing’s for sure – in today’s interconnected economy, no country or organisation is an island when it comes to trade policies. Speed and agility will be essential to navigate these turbulent tariff waters, so get in touch with Flintfox today. Until next time, power to you, pricing people!