As I type this, the US tariff saga is rumbling on, and global markets are continuing to feel the impact. Retaliations between the US and other countries, are making a global trade dispute increasingly likely, which is understandably causing significant concern.

Even if you don’t trade directly with the US, or if the UK’s tariffs seem relatively low (10% in most cases, but up to 25% for British cars), there are implications of the US Tariff increases on global supply chains, pricing, and business confidence much closer to home.

Let’s take a look at seven key areas that could concern small businesses in the UK, and some practical steps you can consider to help protect yours…

1. Confidence is Falling – And That Could Hit Your Sales

Financial markets have taken a knock, and business confidence is lower than ever. When uncertainty rises, both consumers and businesses often reduce spending, especially when it comes to items they deem non-essential.

Even if you don’t export or import, your customers might start to pull back as confidence drops. That could mean fewer orders, delayed projects, or less repeat business, particularly if your products or services are seen as ‘nice-to-have’ rather than essentials.

What can you do?

• Focus on keeping your existing customers happy. Consider flexible options, smaller packages, or special offers to keep work coming in. Staying visible and keeping in touch is also vital.
• Think about how you present the value of your business. Can you position your products or services as essential, even in tougher times?
• Review your sales mix. Are you relying heavily on one or two customers, or sectors that might be vulnerable to a downturn?

Tip: Take a look at your sales from the last six months. Are you spotting any slowdowns? If so, it might be time to build a simple cash buffer or look at ways to smooth out your income.

2. Costs May Rise

Tariffs tend to push up costs throughout the supply chain. Even if you’re buying from UK suppliers, they might be affected by US Tariff increases as they’re importing parts, packaging, or materials that are now more expensive.

These cost increases can creep in quietly, but over time, they can really eat into your margins.

What can you do?

• Set up a simple cost tracker for your regular purchases and check it monthly. A basic spreadsheet can do the trick, and if you need a hand, we’re happy to help.
• Review your profit margins and consider whether you need to adjust your prices.

Tip: If you haven’t reviewed your costs in the last six months, now’s a great time to do so. Compare supplier prices and look at your gross margin trends.

3. Understand How Your Customers Are Being Affected

Even if you’re not directly impacted, your customers might be. You might notice changes in order sizes, slower repeat business, or requests for longer payment terms. If you don’t know why this is happening, it’s tough to respond effectively.

What can you do?

• Check in regularly with your top clients. Ask how things are going, what challenges they’re facing, and whether they’re seeing cost increases or changes in demand.
• Use what you learn to anticipate trends, adjust your offering, or support your customers more proactively.

Tip: A quick email or call to your top 5 or 10 customers this month could uncover valuable insights and strengthen your relationship at the same time.

4. You May Need to Rethink Supplier Relationships

Your suppliers might be feeling the squeeze from tariffs, transport delays, or their own rising costs. That could mean price hikes, product shortages, or slower deliveries as they struggle to keep things running smoothly.

What can you do?

• Review your top suppliers. Where do they source from? Could that create issues for you?
• Build a back-up plan in case a supplier becomes unavailable or too expensive.

Tip: Don’t wait for a crisis. Reach out to your key suppliers now and ask if they expect any disruption or price changes in the next 3 to 6 months.

5. You Might Be Affected by What Happens to Other Countries

The US has ramped up tariffs on China and other major economies, and some are hitting back. While these changes don’t directly affect the UK’s own trade agreements, the knock-on effect could be global supply chains being redrawn.

This might create new opportunities for UK businesses, but it could also mean some products become harder, or more expensive, to get hold of.

What can you do?

• Review your stock and equipment. Are there items you’d struggle to replace quickly?
• If you’re planning to invest in equipment, is there value in doing it now, before prices rise further?

Tip: If you import, or rely on imported goods (even indirectly), it could be worth talking to your supplier about forward ordering or locking in current prices.

6. The UK May Respond Too – Which Could Shift Things Again

The UK Government is under pressure to act, and if it does, that could shift the landscape once again. This could affect prices, sourcing options, and trade relationships.

It might mean more changes to the cost or availability of goods, especially if you rely on imports. But it could also open up new opportunities, particularly if UK-made goods become more competitive, or if others pull out of markets you could move into.

What can you do?

• Be cautious about entering long-term supplier contracts if there’s a risk of tariff-related changes in the coming months.
• Look out for new local suppliers who may become more competitive if tariffs rise.
• Explore whether any competitors are stepping back from markets or products you could step into.
• If you manufacture or source items in the UK, consider whether the changing conditions could help you promote ‘locally made’ or tariff-free products more effectively.

Tip: Uncertainty often leads to hesitation. If you’re able to act quickly, you might spot growth opportunities others miss. Stay informed and curious.

7. Stay Focused on What You Can Control

With so much noise and uncertainty, it’s easy to feel like you’re at the mercy of forces outside your control. While you can’t change tariff decisions or market reactions, you can stay proactive in how you respond.

Businesses that stay alert and adaptable tend to weather economic shocks better and often come out stronger on the other side.

What can you do?

• Review your cashflow and key costs regularly. Even a simple monthly check-in can help you spot trends early.
• Keep communication open with customers and suppliers so you’re not caught out by any surprises.
• Take time to assess where your business is most exposed—whether it’s pricing, sourcing, or customer demand.

Tip: Uncertainty is a good time to revisit the basics – know what you spend, what you earn, and how long you could keep going if things got tight. Even simple tracking can give you clarity and confidence.

In conclusion…

Although these US tariffs might seem a world away, their effects can quickly ripple through to UK businesses of all sizes. That’s why it’s so important to keep an eye on what’s happening internationally and be alert to any early signs that your business could be affected.

Taking a proactive approach now, by reviewing your costs, staying close to your customers and suppliers, and keeping your cashflow in check can make all the difference. Being prepared means you’ll be in a much stronger position to weather any challenges and even spot new opportunities as the situation develops.

If you’d like to talk through any concerns, need help reviewing your numbers, or just want to make sure you’re as resilient as possible, please get in touch. We’re here to help you stay ahead of events where possible and make confident, informed decisions for your business so please do shout if you need to!