President Donald Trump has announced his business tariffs – and the UK is being charged 10 per cent from April 5, 2025.

The UK hasn’t been hit as hard as other parts of the world, such as the EU, which has to pay a 20 per cent tariff.

UK companies that export to the USA are going to be the most harshly affected. According to the BBC, the most widely sold exports are cars (£9 billion), medicines and pharmaceutical products (£6.6 billion) and mechanical power generators (£4.6 billion). In fact, the US accounts for 40 per cent of AstraZeneca’s sales and half of GlaxoSmithKline’s.

Starmer is saying that a trade war with the UK is not in its national interest but would still favour a trade deal with the US. He’s added that ‘nothing is off the table.’ He appears calm, advising the UK to ‘trust the process.’ That said, there are reports that he is drawing up a list of US products to hit with tariffs.

But there is cause for concern. Tina McKenzie, policy chair of the Federation of Small Businesses, said that 59 per cent of small UK exporters currently sell into the US market.  

“The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse,” she said. “This will provide breathing space and support, protect people’s wages, and ensure that suppliers owed payments are paid – all helping to contain the fallout and allow firms a bridge as they adapt.”

What should businesses do now?

Business commentators have repeatedly noted that firms are ‘reeling’ after the tariff announcement, but what actions can you as an owner take right now? The experts weigh in on the present situation. We’ll update this section once Starmer has made his response.

Balance pressure with opportunities

Ryan Fazackerley, director of sales at cask investment company and independent bottler, Whisky 1901

“In the face of these challenges, UK whisky producers and investors alike must stay vigilant. Diversifying markets is essential, ensuring that whisky businesses do not rely solely on one region for their export revenue. Strengthening relationships with emerging markets could provide a hedge against the risks posed by global trade disputes. For investors, securing a diversified whisky cask portfolio with global appeal could mitigate the impact of any future trade restrictions.

“The broader trend of increasing global trade tensions is a reality that whisky producers and investors must confront. To navigate these challenges, the whisky industry must adapt and stay resilient, balancing the pressures of international trade with the opportunities presented by a growing global appetite for premium whisky.”

Think of logistics for customers

Robin Anderson, head of product management at Tribe Payments

“Merchants shipping into the US must now factor in longer customs processing times, higher fulfilment costs, and the likely increase in customer service issues related to unexpected duties.

“For businesses operating across borders, the increase in duties is not just a logistical headache, but a financial one, threatening already narrow margins and forcing a rethink of their operational strategies. For online sellers, the knock-on effects could include reduced cart conversions, payment disputes, and an uptick in chargebacks as shoppers react to unfamiliar charges or delivery delays.

“In this climate, intelligent payments infrastructure becomes a key competitive edge. Advanced payment routing can help merchants reduce transaction costs and avoid unnecessary fees. Faster settlements improve access to working capital, and enhanced fraud mitigation tools help protect revenue when businesses can least afford losses.”

Optimise payments

Zaki Farooq, chief technology officer and co-founder of PayFuture

“Businesses can cut costs by optimising their payment providers, using local acquirers, and offering region-specific payment methods and currencies that improve both acceptance rates and customer satisfaction.

“In this volatile environment, merchants must reduce friction and control costs wherever possible. That means using local payment methods, real-time transfer rails, and smart routing to reduce currency fees and improve approval rates.”

See also: The 9 best card readers for UK small businesses – These are the 9 best card readers that meet the demands of scaling businesses according to cost, transaction fees, and features

Source external funding

Managing director of Aurora Capital, George Holmes

“Businesses may need to look to external financing to manage the impact. It’s important for lenders and financial institutions to step up with practical support and flexible solutions during this period, especially for those in industries hardest hit. With the right financial backing and support, SMEs can adapt and stay resilient despite these new trade barriers.”

Focus on the UK and EU, maintaining strategic partnerships

John Phillipou, chair of FLA and MD of SME lending at Paragon Bank

“Encouragingly, we’re seeing shifting sentiment towards European and domestic brands as customers look to protect against uncertainty, in turn creating opportunities for UK manufacturers. With strong local supply chains and a reputation for quality, British businesses are well-placed to grow market share and benefit from industry reshoring trends.

“As the trade landscape evolves, it’s crucial for SMEs to remain agile. With careful planning and strategic partnerships, UK businesses can thrive despite global uncertainties.”

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