UK SMEs Face £17K Costs Amid US Tariff, Trade Shifts

UK small and medium-sized enterprises (SMEs) are facing significant challenges due to the evolving global tariff environment driven largely by US trade policies, with over half viewing tariffs as a major economic hurdle and nearly half expecting decreased overseas trade volumes. The financial impact is substantial, with average tariff-related costs nearing £17,000 per business, exacerbating difficulties amid high inflation and interest rates. Many SMEs are adjusting by diversifying trade partnerships, reducing reliance on the US market, and shifting currency payments to euros and sterling to mitigate dollar volatility. Some businesses are exploring new markets, including China, and considering strategies like onshoring or friendshoring to manage risk and maintain competitiveness. Meanwhile, in the US, rising tariffs have prompted online merchants, including Amazon sellers, to expand internationally, with a notable increase in interest in Europe as a way to circumvent tariff pressures. These shifts highlight how tariff uncertainty is reshaping global trade strategies for SMEs and e-commerce businesses alike, with both challenges and opportunities emerging amid ongoing trade negotiations and policy changes.