When President Trump announced a blanket 10 per cent tariff on UK imports, my first thought was that many British businesses wouldn’t realise how significant this is until the costs hit their bottom lines. That moment is now upon us.
Tariffs are here, and they’re serious.
From tomorrow (5 April), nearly every UK product crossing into the US faces a 10 per cent tariff.
Automotive businesses have already felt the pain. Cars have carried a 25 per cent tariff since last Thursday, with additional tariffs on automotive components coming next month.
Indeed, the UK isn’t among Trump’s so-called “worst offenders”.
The EU faces a 20 per cent tariff, Japan 24 per cent, and China an unprecedented 54 per cent, but we shouldn’t underestimate the seriousness of this development.
A blanket tariff on UK exports to the US represents a fundamental shift that requires an immediate response.
Why this matters beyond headline numbers
Having spent years advising businesses on international trade and cross-border tax, I know tariffs aren’t simply a matter of incremental costs.
They reshape entire supply chains, reduce competitiveness, compress margins, and threaten the long-term viability of even well-managed companies.
While the Government’s response has so far been measured, launching consultations rather than imposing retaliatory measures, uncertainty still dominates.
Bodies like the CBI and the British Retail Consortium advise caution against escalation. Rightly so, as retaliatory tariffs can rapidly worsen the situation.
How UK businesses should respond now
Restraint shouldn’t mean complacency. We’re in a new reality where political decisions carry immediate commercial consequences.
Companies exporting to the US must proactively manage these risks:
- Reassess your pricing, product viability, and profitability in the US market under the new tariffs.
- Tariffs will increase your costs. Model this impact now to make the best strategic decisions for your business.
- Diversification may be essential if US trade proves increasingly difficult. Identify other international markets where your products could thrive.
- Reliefs from HM Revenue & Customs (HMRC) alongside investment schemes can help offset some of the rising costs, make sure you are fully utilising them.
Navigating uncertainty demands decisive action
This tariff situation highlights something I have long emphasised, which is that uncertainty is now an inherent feature of international trade.
Businesses must become agile, adaptable, and strategic, not merely reactive. The most resilient companies will position themselves to thrive in it.