USA Tariffs: What They Mean for UK Businesses – A No-Nonsense Guide

When we hear about tariffs, it’s easy to switch off—talk of trade wars and international politics can feel a million miles away from everyday business. But if you’re a UK business that imports, exports, or relies on goods affected by tariffs, it will matter. Here’s what you need to know, in plain English.

What Are Tariffs?

Tariffs are taxes placed on imported goods. When the US imposes tariffs, it means certain goods from other countries (like the UK) are taxed as they enter the US. This makes them more expensive to American buyers, which can affect demand.

Why Is the US Imposing Tariffs?

Tariffs are often used as a political or economic tool. The US has introduced tariffs to:

• Protect American industries (like steel or tech)

• Respond to trade disputes (especially with China and the EU)

• Encourage domestic production over imports

The UK sometimes gets caught in the crossfire, even when not directly involved in the dispute.

What Does This Mean for UK Businesses?

If you export to the US, tariffs can make your products less competitive. If you rely on US goods or raw materials, your costs might rise. Here’s how it plays out:

1. Manufacturers

If your supply chain includes US materials—like specialist machinery, parts, or chemicals—you may see cost increases. Check your contracts and look for alternative suppliers if possible.

2. Exporters

Selling to the US? Tariffs can make your products more expensive compared to US-made alternatives. You may need to renegotiate prices or absorb some of the cost to keep your market share.

3. Retailers

Even if you don’t import directly from the US, tariffs can cause ripples. Suppliers may increase prices to cover their own rising costs, which gets passed down to you.

Sectors Most at Risk

• Automotive and parts

• Tech and electronics

• Steel and aluminium products

• Agricultural goods (like whisky, cheese, and meat)

If you’re in these sectors, stay especially alert.

What Can You Do About It?

Here are five steps to protect your business:

1. Check Your Exposure

   Look at your suppliers and customers. Are any in the US? Do any depend on US tariffs?

   
   

2. Talk to Your Accountant or Advisor

   We can help you analyse your risks, explore tax reliefs, and build tariff costs into your financial planning.

   
   

3. Review Contracts

   Are your prices fixed? Do you have clauses that let you adjust for cost changes? It may be time to update terms.

   
   

4. Diversify Suppliers

   If you rely heavily on one US supplier, consider alternatives in Europe or Asia to spread the risk.

   
   

5. Stay Informed

   Tariffs change. Subscribe to a reliable trade update or ask us for updates tailored to your sector.

Final Thought

Tariffs aren’t just about global politics—they hit home for UK businesses trying to stay competitive. At TCW, we believe in giving you the facts without the fluff. If you think tariffs could impact your business, talk to us. We’ll help you cut through the jargon, manage the risks, and keep your business moving forward.

Need a tariff check-up or advice? Contact TCW today – we’re here to help you make sense of it all.