WH Smith's boss says tariffs are likely to bring price cuts, not inflation

Donald Trump's tariff war is more likely to lead to price cuts than inflation for many retailers in the UK, the boss of WH Smith has said.

- Sarah Butler

Many economists, including those at the Organisation for Economic Cooperation and Development (OECD), have suggested that increased barriers to trade could fuel inflationary pressures across the globe.

But Carl Cowling, the chief executive of the retailer, said: "I don't think there is any logic in why there would be inflation. You could argue it would be the other way around and stock will free up, and it is more likely to be that than inflationary for the UK."

He said the company had not seen any disruption to deliveries from overseas suppliers owing to the rapidly changing news on tariffs. Any changes in sourcing or prices were unlikely to be swift for WH Smith as the group's stock orders were "locked and loaded" until after Christmas.

"We know exactly what product and packaging we are getting, what we are paying and have got orders committed," he said.