Tom Reynolds, the chief executive of the Bathroom Manufacturers Association (BMA), has warned that US president-elect Trump’s proposed economic policies could lead to higher inflation in the country, leading to the extension of high interest rates in Europe and beyond.
Yesterday, November 6, Donald Trump was confirmed to be the president-elect of the United States, and will be returning to the White House as the country’s 47th president.
One of his key economic policies is to impose tariffs on goods imported to the US. He has proposed a tariff of anywhere between 10% to 20% on goods from most other countries and 60% on all imports from China. He has even discussed introducing a 200% tax on some imported vehicles.
In a comment to kbbreview, Reynolds said: “The United States election is important for the whole world, not just because of the geopolitical consequences, but also because it is a bellwether for the global economy.
“President Trump’s return to the White House is likely to lead to the world’s greatest superpower becoming more isolationist. This means some potential additional risks around conflict in Europe, the Middle East and South China sea.”
He also speculated: “New trade tariffs may also lead to higher inflation in America, extending high interest rates globally, and some trade diversion to Europe affecting domestic producers. “
However, in a more positive tone, he said: “We must acknowledge that the financial markets have responded well to the decisiveness of the election result, which hopefully will be continued into the transition and beyond.”
Although part of his platform to drive economic growth in the US, some economists have questioned whether Trump’s tariff policy could make non-US businesses consider reducing their trade efforts into the country, as the price of importing goods could increase.
Several British KBB brands already trade within the US, and several other well-known UK companies have recently discussed their plans to break into the American market in the near future.
Earlier this year, British brands Crofts & Assinder, Fitzroy of London, Thomas Crapper and Senstec joined the BMA at this year’s Kitchen & Bath Industry Show (KBIS), considered to be the largest KBB industry exhibition in the world.
When kbbreview spoke to the companies at KBIS, they collectively reported that US consumers had shown genuine enthusiasm for British-made KBB products, with Sherry Qualls, NKBA Global Connect consultant, commenting: “American consumers, who still like a more transitional to traditional flavour, really love the legacy of UK brands”.
As it looks to expand into the US, Senstec appointed its first managing director for Senstec USA earlier this year. Additionally, major UK national retailers are also interested in the US market, with Wren Kitchens announcing last month it had formed a strategic partnership with US home improvement retailer Home Depot, to open concessions within its stores.