What do Trump’s tariffs mean for UK family budgets? Here’s how they could affect you

Here’s what’s happening (in plain English), how it could affect your household, and what UK parents can do to stay ahead—without panicking.

First things first: what are tariffs?

Tariffs are basically extra taxes placed on goods that a country imports from abroad. So if a company in the US buys products from China, or vice versa, it now has to pay a hefty tax before it can even put them on the shelf.

While these costs are payable by companies, they often get passed down the chain, from the suppliers to the retailers, and eventually to us as customers, meaning we pay more at the till—even tills in countries not directly affected by the tariffs.

Tariffs are usually used for two main reasons: to make foreign goods less appealing (so people buy domestic alternatives), and to pressure other countries into changing how they trade.

“Even policies happening far across the ocean—like U.S. tariffs—can end up reaching right into the day-to-day lives of UK households,” says Andrew Gosselin, CPA (Certified Public Accountant) and personal finance expert at Coupon Mister.

“It doesn’t always show up in headlines here, but you’ll feel it when you’re buying nappies, trying to replace a car seat, or wondering why the snacks your kid loves are suddenly more expensive.”

Global policy decisions almost always show up in our lives—whether it’s at the checkout or on a monthly savings report.

What has Trump done now?

President Trump has long believed that other countries are taking advantage of the US, and that tariffs will make America stronger. Earlier this month, he introduced a new wave of what he calls “reciprocal tariffs.”

That means:

• A minimum 10% tax on all goods entering the US from countries, including the UK
• A specific focus on China, which now faces a huge tax (currently estimated to exceed 100%) on all exports to the US
• China is retaliating with its own tax on US goods
• More disruption to global trade than we’ve seen in years

Even though the UK isn’t in direct conflict, we’re affected because we’re part of a global supply chain that depends on goods and components flowing freely around the world, particularly in China.

Why does this matter to UK parents?

You might be wondering: if this is about the US and China, why should I care in the UK?

Here’s how it could affect families here:

1. Prices could rise on everyday family essentials

Many everyday items UK families rely on—like toys, children’s clothes, car seats, household goods and even school supplies—are made or assembled overseas, particularly in China.

While US tariffs on Chinese goods may not directly impact UK shoppers, many of the materials or components used in these products come from the same global supply chains that are now under more pressure.

When trade with the US becomes more expensive, manufacturers in China and elsewhere often try to make up for lost profits by raising prices in other markets—including what they charge UK and European retailers.

“When the U.S. imposes tariffs on goods from major exporters like China or Europe, American companies start sourcing those products elsewhere,” says Andrew. “That creates more competition for countries like the UK trying to get their share of those same goods, which drives prices up.”

“New US tariffs could soon make life more expensive for UK families, in ways that aren’t immediately obvious,” adds Fiona Peake, Consumer Money Expert at Ocean Finance.

Parenting essentials like buggies, prams, car seats and even children’s clothing can be affected if manufacturers face higher costs or start favouring other markets.

On top of that, children’s products are rarely made in just one place. Parts may come from one country, be assembled in another, and packaged in a third—so if one step gets more expensive, everything else does too.

Tariffs shake up supply chains, and that’s when prices on everyday family goods start creeping up.

Darren Mercieca, a finance expert and CFO (Chief Financial Officer), at Kiwi Bets, says he’s already seen price shifts hit family staples. “Something as standard as a baby car seat that used to retail for £120 now sits closer to £145,” Darren explains. “Not because it got fancier, but because the cost of parts, many imported from Asia through US-based logistics hubs, has gone up.”

People assume tariffs are a ‘US issue’, but the impact trickles in—through the currency, through the price tags, and through the small financial decisions families make.

2. Your child’s savings might dip

Got a Junior ISA or Child Trust Fund invested in stocks and shares? You might see some bumps. That’s because financial markets don’t like uncertainty, and a global trade war is a big one.

“When the US announces new tariffs, it can trigger volatility in global markets,” says Elizabeth Rivelli, personal finance and insurance expert at Best Money.

Markets in the UK and around the world have wobbled in response to Trump’s announcement. If your child’s savings are linked to investments, this could temporarily affect how much they’re worth.

If inflation creeps up but interest on children’s savings doesn’t match it, the real value of those savings quietly erodes.

Elizabeth also points to changes in saving behaviour as a knock-on effect of tighter budgets.

“I’ve spoken with parents who’ve gone from saving £100 a month to £40 because their grocery and childcare bills went up—not drastically, but just enough to require a trade-off.”

“It might not be a huge hit all at once, but over time, families may start to wonder why their balances aren’t growing as they hoped,” agrees Andrew. “These accounts are often tied to funds that react to global markets—so when tariffs create volatility, that can affect long-term growth.”

Darren echoes the long-term risk to children's savings, particularly when inflation quietly chips away at returns, explaining that “a 4% return on a Junior ISA now feels like 2% once you strip out inflation. Over 15 years, that could mean thousands less than you expected.”

We’ve had to re-forecast long-term growth for family portfolios, leaning more on diversified assets and limiting exposure to sectors hit by tariff-driven cost shocks.

However, not all experts believe families should worry about every market wobble—especially when savings are long-term.

Matthew Parden, CEO of money management app Marygold & Co., agrees that market volatility impacts UK families, but cautions against overreacting, especially when it comes to long-term savings products like Junior ISAs and Child Trust Funds.

“Sudden changes in trade policy, such as those triggered by US tariffs, can cause fluctuations in performance,” he explains. “But if your child is relatively young, the markets tend to even out over time. With long-term investments, sometimes it's best not to check in too frequently—especially in volatile times.”

He also notes that rising living costs—especially for childcare and everyday items like toiletries, cleaning products and baby formula (known as fast-moving consumer goods or FMCG)—are putting pressure on short-term budgets. “Families may want to consider balancing the potential growth of investment-based products with the stability of less risky options like cash savings,” he says. “Diversifying your financial strategy can help protect what you’ve worked hard to build.”

Long-term investments like Junior ISAs often recover with time. The real challenge is balancing future goals with the cost of living now.

What else could happen?

Economists are warning that this trade row could hurt economies worldwide. That includes:

• Rising inflation – meaning general price increases on everything from food to furniture
• Slower supply chains – causing stock shortages or delays in essential family items
• Higher borrowing costs – possibly affecting mortgages or childcare loans in the long term

The UK government says it's still negotiating with the US, but no deal has been made yet.

What can parents do now?

You don’t need to follow every twist in international politics, but there are clear, practical steps you can take to stay one step ahead—and protect your family’s finances from the ripple effects of rising tariffs.

1. Keep an eye on prices

Start tracking what you usually spend on everyday essentials—like school uniforms, snacks, toiletries, or family groceries. If prices start creeping up, adjusting your budget early can help you avoid getting caught out.

Fast-moving consumer goods like toiletries, nappies and formula could all rise in cost if global supply routes are disrupted.

2. Shop early for big buys

Got your eye on a big-ticket item—like a car seat, family tablet or bunk beds? If it’s from a well-known global brand, consider buying it sooner rather than later to avoid potential price hikes, stock issues or delivery delays.

If you’re expecting a child or planning an upgrade, now’s the time to shop around—especially for big-ticket baby buys.

3. Check your child’s savings

Take a look at your child’s Junior ISA or Child Trust Fund. If it’s invested in the stock market, now’s a good time to review where the money is held—especially if your child is nearing 18.

Volatility in global markets caused by tariffs can trickle down into our everyday finances. Checking your savings gives you more control and clarity.

4. Stay informed (but don’t panic)

Understanding the basics of what’s happening in global trade can help you make smart decisions—from what to buy and when, to how to adjust your savings plan.

Being aware of these things doesn’t make you paranoid. It helps you stay ready to respond when things shift.

5. Make your money work harder

Make the most of cashback apps, loyalty schemes and discount codes, especially when shopping for family essentials. Every little saving helps keep your household budget on track.

Small, intentional moves—like using loyalty rewards or buying in bulk—can have a big impact when the wider economy feels uncertain.

We’ll be keeping a close eye on how this global story unfolds—and what it means for UK families like yours.

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