The ongoing rise in US tariffs is sending shockwaves through global markets, escalating trade tensions and triggering widespread economic uncertainty. Even if your UK-based business doesn’t directly trade with the US, the ripple effects of these tariff hikes can still impact your supply chain, cost base, and customer confidence.
So, what should you be looking out for? And how can you proactively protect your business? Here are 7 key concerns and practical steps you can take to stay ahead.
1. Falling Confidence Could Impact Your Sales
With markets reacting negatively to ongoing trade disputes, business and consumer confidence is falling. People tend to cut back on non-essential spending during uncertain times, which may lead to fewer sales, project delays, or reduced repeat business—even for businesses that operate solely within the UK.
What you can do:
- Prioritise customer retention with flexible pricing, smaller service bundles, or special promotions.
- Reframe your product or service as essential to your customers’ success or wellbeing.
- Review your customer base: are you over-reliant on specific sectors or clients that might be vulnerable?
2. Rising Business Costs Due to Global Supply Chain Disruptions
US tariff increases may raise costs across the supply chain, even if you’re sourcing locally. That’s because your suppliers could be importing raw materials, packaging, or components that have now become more expensive.
What you can do:
- Set up a simple cost tracker to monitor price changes over time.
- Review your profit margins and adjust pricing if needed.
- Conduct a supplier cost review—especially if it’s been more than 6 months.
3. Your Customers May Be Under Pressure Too
If your clients are dealing with increased costs or declining demand, it could affect how they do business with you. This might show up as smaller orders, delayed payments, or a drop in repeat work.
What you can do:
- Connect with your top customers. Ask how they’re coping and what trends they’re seeing.
- Use this insight to offer more relevant support or services.
Quick Action: Check in with your top 5–10 clients this month. It strengthens relationships and gives you real-time market insights.
4. Supplier Risk Management Is Now More Important Than Ever
Suppliers may face shipping delays, tariff-related price hikes, or shortages that disrupt your business. Now’s the time to review where your suppliers source from and assess any hidden vulnerabilities in your supply chain.
What you can do:
- Identify your top 3–5 critical suppliers and ask about their sourcing risks.
- Create a backup plan in case one becomes too expensive or unavailable.
5. Global Tariff Shifts May Indirectly Affect Your Business
Even if the UK isn’t directly involved in a trade war, global supply chains are being reshaped. Tariff changes between the US, China, and others may cause certain products to become scarce or more expensive—even for UK buyers.
What you can do:
- Identify equipment or stock you’d struggle to replace and consider forward ordering.
- Lock in current prices where possible.
Helpful Hint: If you rely on imported goods, even indirectly, speak to your supplier about securing inventory before further price hikes.
6. The UK May Introduce Its Own Tariffs
With the UK government currently consulting on retaliatory tariff measures, there’s a risk that import/export costs could change again by mid-2025. This may impact your product pricing, sourcing strategy, and competitiveness in domestic and overseas markets.
What you can do:
- Avoid locking into long-term supplier contracts if tariffs are likely to change.
- Seek out local suppliers that may become more competitive under new rules.
- Keep an eye on market opportunities where competitors are pulling back.
7. Control What You Can and Stay Agile
You can’t control global tariffs, but you can take proactive steps to protect your business against economic shocks.
What you can do:
- Conduct monthly reviews of your cash flow, spending, and key metrics.
- Maintain open communication with your customers and suppliers.
- Identify and manage your most exposed areas—whether that’s pricing, sourcing, or customer retention.
Final Tip: A simple tracking sheet can give you the clarity to make confident decisions, even during turbulent times.
Final Word: Stay Informed and Prepared
US tariff increases may seem distant, but their impact can quickly reach your doorstep. As the global trade landscape shifts, businesses that stay informed and adapt quickly will be best placed to weather the storm—and potentially find new opportunities.
If you’re unsure how exposed your business is or want help identifying where you could improve profitability, reduce risk, or pivot your strategy — get in touch with us today. Let’s chat about how to keep your business resilient and thriving during uncertain times.