UK small and medium sized enterprises (SMEs) are facing considerable challenges from the changing global trade dynamics driven by US tariff policies. Recent research indicates that 55% of SMEs regard tariffs as a major economic hurdle, with a significant portion predicting reduced overseas trading volumes. The financial impact is expected to average nearly £17,000 per business due to new tariffs. Many SMEs are adjusting their strategies, with some cutting back on US customers and switching to euro and sterling payments to manage currency volatility, amid a difficult cost environment characterized by inflation and high interest rates.
Over half (55%) of UK SMEs see tariffs as a key economic challenge, with nearly half (47%) expecting a reduction in overseas trading volumes due to tariff uncertainty.
The total cost of new tariffs is estimated to reach nearly £17,000 per business, compounding existing financial challenges from inflation and high interest rates.
Data shows that 20% of SMEs are reducing their customer base in the US. Nearly 59% are shifting to FX payments in euros and sterling to counter dollar volatility.
While some SMEs are suffering from profit margin erosion, others view tariff uncertainties as an opportunity to reassess and optimize their supply chains and customer networks.
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