News

Will Trump’s tariffs impact your business?
20 March 2025

President Trump’s tariff proposals are creating uncertainty in global markets.

While the UK has not been directly targeted yet, British businesses could still feel the impact of U.S. trade policies.

Trump’s latest proposal to impose reciprocal tariffs on countries with value-added tax (VAT) systems, including the UK, could result in a 20 per cent tax on British exports to the U.S., primarily affecting industries like automotive, pharmaceuticals, and food and drink.

If you export goods to the U.S., it is time to review your relationships with your U.S. partners.

Consider renegotiating contracts or terms and assess how tariffs might impact pricing and demand for your products.

The UK’s strong ties with the EU mean that tariffs on European goods could also indirectly raise raw material and component costs for British businesses.

As supply chains become more unpredictable, UK companies may face inflationary pressures and operational challenges.

To mitigate these risks, consider sourcing materials from UK manufacturers or regions less likely to be affected by Trump’s tariffs.

This can reduce your reliance on European and U.S. suppliers, where disruptions and cost increases are anticipated.

Uncertainty around Trump’s trade policies has already led some businesses to delay investments and rethink their global business strategies.

Given that many details about potential tariffs remain unclear, staying updated on U.S. trade policies and adjusting your strategy to minimise the impact is crucial.

It is recommended that you develop contingency plans to protect your business in case tariffs are levied in future.

Contact us if you are concerned about how global trade disruptions could impact your business.