Since January 2025, the Trump administration has pursued a bold trade strategy, imposing sweeping tariffs on a wide range of imported goods.
Snapshot Summary
Since January 2025, the Trump administration has imposed sweeping tariffs on key imports, especially from China, Canada, Mexico, and the EU, citing national security and economic concerns. UK exporters to the U.S now face greater pressure to prove UK-origin status to avoid tariffs, making documentation critical. For SMEs, these changes bring both risks and opportunities. Recommended actions include reviewing tariff exposure, assessing supply chains, managing currency risk, improving customs compliance, and exploring new markets.
Since January 2025, the Trump administration has pursued a bold trade strategy, imposing sweeping tariffs on a wide range of imported goods. Targeting key sectors such as automotive, technology, and consumer electronics, these measures have most significantly impacted trade with China, Canada, Mexico, and the European Union. Implemented through Executive Orders under the International Emergency Economic Powers Act, effectively bypassing congressional approval, these tariffs have been justified on grounds of curbing drug trafficking and illegal immigration, boosting domestic manufacturing, and increasing national security.
For SME businesses, especially those reliant on global supply chains or export markets, these changes introduce both challenges and potential opportunities. This article explores what these tariffs mean for your business, the likely economic ripple effects, and how SMEs can adapt strategically.
Implications for UK Companies Supplying U.S. Bound Products
With the U.S. tariff regime focused on the origin of imported goods, UK exporters are under growing pressure to prove the UK-origin status of their products, especially when shipping to American customers.
For UK clients exporting to the U.S., maintaining that UK-origin designation is becoming increasingly critical to avoid tariffs. In this environment, documenting origin is becoming just as important as product quality. UK exporters are more frequently requiring detailed declarations, certificates of origin, and full visibility of their suppliers’ sourcing.
5 actions that we would recommend:
Assess Your Pricing and Tariff Exposure: Assess and identify which of your products are subject to the 10% tariff. Review the customs classification (HS codes) of your goods, as reclassification may reduce duty rates. Understanding your exposure helps in pricing and margin calculations.
Evaluate Supply Chain Impacts: We strongly recommend that you review your supply chain for any components sourced from countries facing higher tariffs, such as China. This is due to the indirect tariffs increasing costs even if your goods aren't directly taxed. If your supply chain is impacting, you could consider alternative suppliers or materials to mitigate these cost increases. It is key that you are staying flexible and compliant, respond quickly to changes in U.S. trade policy whilst also keeping costs manageable.
Optimise Currency Exchange Strategies: Implement foreign exchange (FX) strategies to manage currency fluctuations. The currency volatility can affect profit margins on international transactions.
Enhance Customs Compliance: It is important to ensure you can produce documentation to support UK origin and ensure that all customs documentation is accurate and complete, because if you don’t have the proper documentation, this can cause delays and potential fines.
Diversify Market Reach: Consider exploring and expanding into markets outside the U.S., this reduces reliance on a single market, which can mitigate risks associated with trade policy changes.
For more information or if you feel you would benefit from a conversation regarding anything discussed in the above article, please do not hesitate to get in touch, please contact us via email or phone and we will be happy to advise on the best solutions for your business. We are here to support you in navigating these complexities.
Please note: Any details of US tariffs and trade agreements discussed in this article are based on information available at the time of publication. As tariffs are subject to change and the official documentation and finer points of a trade deal between the United States and the United Kingdom are still being finalised and released, some details discussed may be subject to revision. Readers are strongly advised to consult official government sources and seek appropriate professional advice for the most up-to-date and accurate information before taking any action. No responsibility can be accepted for any loss incurred by individuals acting or refraining from action as a result of the material contained in this article.
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