Navigating Trump's Tariffs: A UK Small Business Owner's Perspective

Trump’s tariff chart might look like politics as usual, but for UK small businesses, it’s a direct hit or a surprising edge, depending on your view.

As a UK-based marketing consultant and small business owner, I’ve always had a keen interest in business and economics especially when it comes to the impact of US economic decisions on the UK. Working in marketing means keeping a close eye on how global trends affect local markets, and the recent announcement that Donald Trump is planning to introduce a 10% tariff on UK goods exported to the US definitely caught my attention.

While this 10% rate is lower than the 20% being applied to EU countries, it’s not without its complications. That said, I also believe there’s opportunity abound, particularly as Trump’s stance suggests a favourable tilt towards the UK compared to our European neighbours.

The Hidden Cost of ‘Only’ 10%

On the surface, a 10% tariff might not seem devastating. But for those of us already managing rising operational costs at home, another barrier especially in a key market like the US feels like one more hurdle on an already uphill road.

I work with service-based businesses across the UK, many of whom are exporting their skills or digital products abroad. A handful rely on transatlantic clients, partnerships, or resellers. That 10% increase? It either eats into their profit margin or forces them to raise prices in a market where competition is already fierce.

According to the Federation of Small Businesses, nearly 60% of small UK exporters do business with the US. And when you’re not a multinational with a buffer, even “modest” tariffs hit hard.

The (Small) Silver Lining

There is, oddly, a small win tucked in here. Unlike EU countries facing 20% tariffs, the UK is looking at the lowest rate in the group. One could argue this is a fringe benefit of post-Brexit trade flexibility. We may be getting the short end of the stick but it’s not the shortest.

In theory, that lower rate could make UK businesses more appealing than EU competitors facing higher tariffs. But that’s only useful if you can stay in the game long enough to leverage it.

What Can We Do About It?

From one small business owner to another, here’s my take:

1. Diversify – If the US is one of your key markets, look into new opportunities in Canada, Australia, or emerging markets in Southeast Asia. The digital economy has opened doors globally.
   

2. Strengthen Local – Now’s a good time to reinvest in your UK presence. Dominate your niche, improve visibility, and nurture local leads.
   

3. Reassess Your Value Proposition – Can you position your product or service as ‘worth the extra cost’? This is where strong messaging and consistent marketing matter more than ever.
   

4. Outsource and Stay Agile – If rising costs have you eyeing your in-house team or marketing spend, think before you cut. Outsourcing can keep you visible and generating leads without the overheads.
   

Key Points from Trump's Tariffs Affecting UK Small Businesses

As a UK small business owner, it's crucial to understand the specific impacts of the recent tariffs imposed by former President Donald Trump:

1. 10% Tariff on UK Imports:
   

   • The US has implemented a 10% tariff on imports from the UK, affecting approximately £60 billion worth of goods exported annually. While this rate is lower than the 20% imposed on EU countries, it still presents significant challenges for UK exporters. ​
     

2. 25% Tariff on Automotive and Related Industries:
   

   • A 25% tariff has been imposed on imported vehicles and auto parts. This has led companies like Jaguar Land Rover to temporarily halt shipments to the US as they reassess their strategies. ​The Guardian+4WSJ+4AP News+4
     

3. Impact on Small and Medium-sized Enterprises (SMEs):
   

   • Approximately 59% of small UK exporters sell to the US market. The Federation of Small Businesses warns that these tariffs will cause significant damage to SMEs attempting to trade profitably amid a flat domestic economy. ​London Business News+2Morningstar+2Al Jazeera+2
     

4. Comparative Advantage Over EU Counterparts:
   

   • The UK's 10% tariff rate, while challenging, is notably lower than the 20% imposed on EU countries. This distinction may offer UK businesses a competitive edge over European counterparts facing higher tariffs. ​
     

5. Potential for Trade Negotiations:
   

   • The UK government is actively seeking to negotiate an economic deal with the US to mitigate the impact of these tariffs. Chancellor Rachel Reeves acknowledges that even with a deal, challenges remain, but efforts are underway to reach a favourable agreement. ​The Independent
     

Understanding these developments is vital for strategic planning. If you're considering adjustments to your business operations or exploring new markets, it's advisable to stay informed and seek professional advice to navigate these changes effectively.

Trump tariffs UK In Summary

Trump’s proposed tariffs may not seem catastrophic on paper but for small businesses already stretched thin, it’s one more challenge to face. If you’re navigating rising costs and need to make smarter decisions with your marketing budget, you don’t have to go quiet to survive.

Book a free consultation and let’s explore how outsourcing your marketing can help you stay competitive, visible, and resilient no matter what tariffs or trends come next.