Barclays: Consumers plan to ‘buy British’ amid escalating trade war
British consumers are planning to buy more UK-made products as two thirds of adults fear tumbling markets could lead to a deterioration in household finances, new research by Barclays has shown.
President Donald Trump’s tariffs have dampened the UK’s economic outlook and put household finances under pressure.
Consumers are now rapidly responding to the changes, according to Barclays, as around seven in ten adults said they planned to buy more ‘Made in Britain’ products.
Liberal Democrats leader Sir Ed Davey has led a national campaign to encourage adults to buy more homemade goods in response to Trump’s impending tariffs as he called for UK firms to be supported.
He has claimed that greater consumption of UK-made products would send a “collective message” that the UK was able to thrive independently of the US.
Barclays’ research also showed that consumers spent less in March as households looked ahead to a raft of increases in costs, including in energy and water bills.
But Britons were still keen to splash out on feel-good experiences as spending on hospitality, travel and leisure increased.
Netflix and Sky subscriptions are likely to have increased as the success of Adolescence and The White Lotus saw consumers spend 5.7 per cent more on digital content compared to the previous month.
But a slump in demand may lie ahead as three in ten people said subscriptions offered less value for money, with several reporting cancellations or pauses to monthly fees.
Karen Johnson, head of retail at Barclays, said that global tensions around trade have led to households becoming “mindful” about the possible impacts.
“In a bid to keep costs down, households are adopting more prudent budgeting, which has led to a resurgence of the ‘big weekly shop’,” Johnson said.
Barclays economist Jack Meaning said the data pointed to the risks consumers faced in the coming months.
“The impacts of heightened uncertainty and rising bills are already being felt,” he said.
“We expect spending to remain muted through mid-2025, before picking up into 2026 as interest rates easing starts to be felt and uncertainty begins to normalise.”