Cheaper Chinese Goods Set to Ease Iran Effect on UK Inflation

The economic repercussions of Donald Trump’s war on Iran are threatening to hurt Britain more than other major economies, with the Bank of England keeping a close eye on price pressures. Yet one of the US President’s other flagship policies — high tariffs — could have a peculiar side-effect of defending the UK from spiraling inflation.

Chinese factories are cutting prices on exports to the UK as they look for alternative markets in the face of Trump’s tariffs. Among the top 25 goods that made up 45% of total Chinese shipments to the UK in January and February, 14 saw their unit value-based prices fall from the same period last year, according to Bloomberg calculations based on data from China’s General Administration of Customs.