Last week, President Donald Trump set off a global economic shockwave with the announcement—and now the implementation—of sweeping new U.S. tariffs. Framed as a bold push to rebalance trade and protect American industry, the plan includes a 10% baseline tariff on all imports to the United States and sharply higher, targeted tariffs on goods from countries labeled “worst offenders,” including China (54%), Vietnam (46%), and the EU (20%). Automobiles face an immediate 25% duty, marking one of the most aggressive protectionist moves from Washington.
While the White House insists these tariffs are necessary to restore economic fairness, global markets have been quick to react. Major indices have tumbled, with billions wiped off share prices across Asia and Europe. The U.S. Dow Jones posted its steepest drop since the pandemic, and confidence has wavered in boardrooms around the world.
For the UK—one of the countries subject only to the 10% baseline on most goods—the implications are far from negligible. British exporters now face steeper costs shipping goods to the U.S., while UK-based multinationals are bracing for longer-term disruption in global supply chains and investor sentiment. In this article, we bring together the views of British business leaders, analysts, and policymakers to take the pulse of how the UK is responding to America’s latest tariff turn.
Tina McKenzie, Policy Chair of the Federation of Small Businesses, said: “The news of 10 per cent tariffs on UK-US trade is a major blow to SMEs. Currently, 59 per cent of small UK exporters sell into the US market.
“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat. The fallout will stifle growth, hurt opportunities, and put a serious dent in the global economy. Now, we’ll need to look at the fine print to work out the precise implications for the UK’s small exporters.
“We support the push for an agreement between the UK and US governments that brings an end to tariff wars and puts SMEs at its centre by reducing non-tariff barriers.
“It’s already tough out there for small firms wanting to export. However, the opportunities it brings are endless – allowing them to tap into new markets and diversify their revenue streams. Those who do export are more likely to grow faster during tough economic times, too.
“The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse. This will provide breathing space and support, protect people’s wages, and ensure that suppliers owed payments are paid – all helping to contain the fallout and allow firms a bridge as they adapt.”
Mark Pearson, founder of Fuel Ventures pointed out; “It’s all for the US to benefit here, and I don’t see what the benefit for the UK is. We seem to be in a corner like a lot of other countries, and it’s not a good position to be in to negotiate, is it?”
“I really think Trump’s doing this as a big negotiation tactic. Without these tariffs, there would be no conversation, business as usual around the world. He’s really leveraging the US muscle; they’ve got the power.
“We do need to retaliate. You can’t go on forever. If you back down, you’re in a very weak corner position with the US making the rules and everyone else just abiding by it. We can’t have that.”
John Phillipou, Chair of FLA and MD of SME Lending at Paragon Bank remarked “Whilst US tariffs pose a multitude of potential challenges for UK SMEs, particularly in manufacturing and automotive sectors, it’s important to remember UK businesses have shown resilience post-Brexit by adapting to changing trade conditions and exploring new markets.
“Encouragingly, we’re seeing shifting sentiment towards European and domestic brands as customers look to protect against uncertainty, in turn creating opportunities for UK manufacturers. With strong local supply chains and a reputation for quality, British businesses are well-placed to grow market share and benefit from industry reshoring trends.
“As the trade landscape evolves, it’s crucial for SMEs to remain agile. With careful planning and strategic partnerships, UK businesses can thrive despite global uncertainties. Paragon remains committed to supporting SMEs with financial solutions to navigate these changes.”
Robin Anderson, Head of Product Management at Tribe Payments commented, “Merchants shipping into the US must now factor in longer customs processing times, higher fulfilment costs, and the likely increase in customer service issues related to unexpected duties.
“The cost of international goods and services will climb – and merchants are already feeling the pinch. For businesses operating across borders, the increase in duties is not just a logistical headache, but a financial one, threatening already narrow margins and forcing a rethink of their operational strategies. For online sellers, the knock-on effects could include reduced cart conversions, payment disputes, and an uptick in chargebacks as shoppers react to unfamiliar charges or delivery delays.”
Zaki Farooq, Chief Technology Officer and Co-Founder of PayFuture added, “These tariffs threaten to reshape the landscape for ecommerce and cross-border trade. For merchants reliant on low-cost international fulfilment, the loss of the de minimis exemption will directly affect margins, logistics, and the customer experience.
In this volatile environment, merchants must reduce friction and control costs wherever possible. That means using local payment methods, real-time transfer rails, and smart routing to reduce currency fees and improve approval rates. At PayFuture, we help merchants scale into new markets without losing control. As global trade realigns, agile payment infrastructure becomes the difference between growth and stagnation.”
Mirza Baig, Global Business Director at LTS Global Solutions believes the addition of trade restrictions emphasises the need for UK businesses to remain agile and become more open to the idea of diversifying their presence away from tariffed regions if possible.
“Last year, supply chains were hit by a continuous cycle of geopolitical crises, namely the Russia-Ukraine War, ongoing conflict in the Middle East and repeated attacks on vessels by Houthi Rebels which passed through the Red Sea, Mirza said. While all of these issues continue
to rumble on in some shape or form, President Trump’s tariff tirade will likely take the podium as the defining trade disruptor of 2025 and compound these pre-existing challenges.
“Undoubtedly the current pandemonium around the imposition of tariffs will result in short term market volatility, however it’s only once the dust settles that we can gauge the level of fallout from prolonged tariff disputes. If history is any indicator, these measures will likely prompt a further tit-for-tat retaliatory response from major trading partners on top of what has already been implemented, further disrupting global trade and as a result creating additional challenges for businesses reliant on international markets.
Laurent Descout, CEO and co-founder at Neo stated, “With tariffs creating fresh uncertainty in global markets, businesses with international operations face the risk of currency volatility eroding their margins. While all businesses will feel the effects, SMEs will undoubtedly feel these hits the hardest. To weather these storms, treasurers should look to adopt an FX-first strategy, incorporating hedging into their day-to-day business activities. The result is not just risk management, but better cash flow forecasting and a better handle on out-of-control currency swings.
“Beyond hedging, businesses must have seamless access to multiple currencies without the burden of managing multiple accounts. They need solutions which enable companies to send, receive, and hold funds in various currencies efficiently, helping them navigate shifting trade conditions with greater flexibility. At a time when trade barriers can extend inventory cycles and tie up working capital, fast and cost-effective cross-border payments are critical to maintaining liquidity and reinvesting in growth.”
As the dust settles from the announcement of President Trump’s new tariffs, it’s clear that the UK faces a complex and evolving trade landscape. While the immediate impact will be felt across SMEs, particularly those exporting to the U.S., many business leaders stress the importance of resilience and adaptability. From strategic partnerships to embracing local supply chains, UK companies are exploring ways to navigate the disruptions caused by these new tariffs. However, the broader global economic uncertainty is unlikely to ease anytime soon, with retaliatory measures and further trade tensions expected. For UK businesses, the key to weathering this storm will lie in agility, smart financial planning, and a keen eye on emerging market opportunities.
