Hi

Tariffs rarely make the headlines until they hit close to home. If you're a UK-based small business trading with the US, that time might be now.

A new round of US import tariffs—10% across the board, and 25% on specific items like steel, aluminium and vehicles—has landed. And while the political noise will rumble on, let’s cut to what really matters: what does this mean for your business?

1. Margins under pressure

If you're exporting to the US, your costs just went up—whether directly through tariffs, or indirectly via rising material prices (especially steel and aluminium).

Most small businesses can't simply hike prices to cover the gap. That leaves you absorbing the cost, cutting corners, or watching margins shrink. None are great options.

Ask yourself:

Which of your products are now less profitable?

Can you quantify the impact per unit or order?

Now is the time to model best- and worst-case scenarios, not hope for the best.

2. Risk to US trade relationships

About 6 in 10 UK small exporters sell to the US. If that's you, you might already be hearing from American customers who are rethinking orders, delaying shipments, or asking for discounts.

In a price-sensitive market, tariff-inflated products may no longer be competitive. Some buyers will walk. Others will use it to negotiate harder.

You need to be ready.

How much of your revenue is tied to US sales? What happens if that drops by 20%? 50%?

If you're not sure, stop and find out. Today.

3. Time to reassess market viability

For some sectors—automotive is a clear example—the 25% tariff may make continued US trade non-viable. You’ll need to do the numbers, but if exporting costs you more than it earns, it's time to pivot.

Could you redirect your sales focus elsewhere—EU, Middle East, Asia-Pacific? Do you have the right partners and logistics to make that work?

Don't underestimate the time and money needed to develop new markets—but standing still may not be an option.

4. Supply chain disruption

Even if you don’t export, you’re not immune. Many UK businesses import components, packaging, or materials that now come with a higher price tag.

Expect longer lead times, price renegotiations, and more friction with US or international suppliers. This isn't just an admin headache—it hits your margins, delivery timelines, and customer satisfaction.

Start mapping your supply chain now.

Who are your critical suppliers?
Which ones are US-based or exposed to US tariffs?

Consider nearshoring or reshoring where feasible—but be realistic about the cost and operational complexity.

5. Price sensitivity Is about to bite

Pass on the cost to customers and risk lower demand. Absorb the cost and watch your profit drain away. Many businesses, especially in consumer goods, food and drink, and lifestyle products, are stuck between a rock and a hard place.

There’s no perfect answer, but blunt price hikes won’t cut it.

Can you repackage your offer, add value, or change your pricing model?
Have you tested price elasticity recently?

If your competitors haven’t adjusted yet, that window won’t stay open long.

6. Growth will get tougher

International trade has been one of the few bright spots for small businesses post-Brexit and post-pandemic. These new tariffs close off a critical route for growth—especially for ambitious, tech-savvy businesses like yours.

This is where strategic thinking matters.

Can you reinvest in domestic opportunities?
Can you innovate your offer or diversify your channels?

Let this be a prompt—not a pause—in your growth journey.

What else should you watch?

Currency volatility – Tariffs usually shake markets. A weaker pound means imports cost more. Brace for inflationary ripple effects.

Retaliation risk – If the UK retaliates with its own tariffs, more sectors could be hit. Don't assume you're safe if you're not affected today.

Government support – The Federation of Small Businesses is pushing for emergency aid. But help may be slow or limited. You can’t wait around.

What you can do now

Review your export and pricing strategy
Don’t wait until your US customer cancels. Be proactive.

Audit your supply chain
Identify your exposure. Seek alternatives.

Get closer to your numbers
Use Xero or similar tools to model different scenarios.

Talk to your accountant or adviser
Not just about tax—but about strategy, risk, and sustainability.

Stay close to trade updates
These tariffs could change quickly. Keep an eye on official channels and sector groups.

This isn't a death sentence for small exporters. But it is a test of agility, financial clarity, and strategic thinking.

Is there a better way to grow than relying on the US market?
Can you use this disruption to sharpen your focus elsewhere?

If you're asking those questions now, you're already ahead of the curve.

Noel Guilford