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Trump’s Tariffs Are Back — What UK SMEs Should Do Before It Hits

Trump’s return means more than headlines. If you trade with the US, it’s time to rethink your next move.

Author

Anmol Goel
April 08, 2025 • Estimated Reading Time: 5min4 minutes

Hello Innovators,

Welcome to this edition of the GACS Newsletter! If you’re running a business in the UK and trade with the US, you’ve probably seen the headlines.

Yes, Trump is back — and so are the tariffs.

Before you start stressing about supply chains, profit margins, and new paperwork… pause. Let’s break down what’s happening and what you can actually do about it.

What’s going on?

Trump’s trade playbook isn’t new: higher tariffs on imports from countries like China, Canada, Mexico, the EU… and sometimes the UK. What is new? The scale — and the ripple effects it might have on British SMEs.

Expect:

  • Rising costs on materials and finished goods

  • Supply chain chaos if you rely on US/China for components

  • Tougher rules and new layers of compliance

  • Possible retaliatory tariffs from the UK government

What does this mean for you?

If you sell to or source from the US (or China), things could get bumpy. British goods may suddenly be less competitive. Delivery times might stretch out. And your margins? Well… they might feel the pressure.

But this doesn’t mean you need to hit the panic button. It just means it’s time to move smart — and move early.

What can you do now?

Here’s a practical checklist to help you stay one step ahead:

1. Map out your supply chain.
Where are your materials and components really coming from? Identify the weak spots early.

2. Diversify your markets.
Don’t rely on one destination. Look at markets with smoother trade terms — Australia, the EU, Canada, etc. The UK has solid Free Trade Agreements already in place.

3. Use smart trade tools.
Look into:

  • Freeports: Delay duties while goods are processed or re-exported.

  • Customs warehousing/FTZs: Store goods duty-free until they’re sold.

  • Trade preference schemes: You might qualify for better terms under USMCA or other agreements.

4. Double-check your customs codes.
Misclassification could cost you more than tariffs. Get expert advice on your HS codes and mitigation strategies.

5. Stay in the loop.
Trade rules can change overnight. Follow updates from UK Gov, trade bodies, and your industry networks. And if you’re part of a group or association, use your voice — they can push back where it counts.

Opportunity? Maybe.

Some SMEs will be hit hard. But others — especially those producing niche, high-quality, or tariff-exempt goods — might find themselves more in demand as global buyers look for new sources.

If you’re agile and proactive, these next few months could open more doors than you expect.

"In global trade, the winners aren’t the biggest — they’re the ones who adapt first."

This isn’t just about tariffs. It’s about how resilient your business is when the rules change, because they always do.

Take this as your signal to audit, adapt, and explore new opportunities before the headlines become problems.

We hope you found these tips helpful! For more insights and detailed guides, visit our GACS Blog, and stay tuned for more insights and tips from the startup world in our upcoming newsletters!

Best regards,

The GACS Team