Fortnum & Mason warns of higher prices from Trump tariffs
Tom Athron, the chief executive of the Royal grocer, said retailers were operating on 'wafer-thin margins' and so any new tariffs would 'feed through into prices'.
He said: 'Ultimately it will be the consumer who pays. No one wins in a trade war. All that happens is that prices go up and productivity falls. I think it's really disappointing that we find ourselves in this situation.'
Mr Athron comments did not relate to Fortnum & Mason in particular, and were a broader warning over the risk of trade tariffs. The company is not currently planning to push up prices in the UK or prices for items it exports, with Mr Athron saying it was 'too early to say' what the specific impact would be on the luxury grocer.
Fortnum & Mason, which holds two Royal warrants, has recently been expanding into the US and Mr Athron said it remained 'a really important market for us, both welcoming visitors to our shops from the US as well as exporting directly to US customers in their market'.
In 2023, the company unveiled plans to open its first warehouse in America stocked with popular British staples such as tea and jams. At the time, Mr Athron said Fortnum & Mason could even open a store in the US one day.
The Fortnum boss said there were no plans to slow down growth in the US in light of the tariff threat, but suggested things could quickly change. 'Ask me again in six months' time,' he said. Mr Athron said he was 'playing a waiting game'.
Mr Trump was promised to introduce blanket tariffs on foreign imports from Wednesday, dubbing it 'liberation day'. This will be on top of the $890bn (£690bn) worth of imports on specific goods, such as steel and aluminium, and on select countries, including China, that the US president has already announced.
Jonathan Reynolds, Britain's Business Secretary, admitted on Tuesday that Britain was likely to be hit by the levies – which are expected to be around 20pc – after last-minute talks to secure an exemption failed. However, he suggested that the UK was in the 'best possible position of any country' to negotiate carve-outs after the tariffs are announced.
Around 72pc of Americans are concerned about rising prices in the short term, according to polling.
Mr Trump has insisted he is not concerned about tariffs stoking inflation. Over the weekend, he told NBC News that if foreign carmakers raised prices in response to new vehicle tariffs, then it would mean 'people are going to buy American-made cars – we have plenty'.
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