The introduction of new trade tariffs by Donald Trump continues to significantly impact UK SMEs in 2025. Businesses are navigating rising costs, persistent supply chain disruptions, and mounting legal uncertainty – especially when exporting to major markets like the US and China.
Following recent changes introduced under the US administration, UK exports now face a 10% general tariff, with additional duties up of up to 25% on key goods such as steel, aluminium and select agricultural products. These measures are part of a broader trade strategy aimed at protecting domestic industries in the US. But for UK SMEs, they present serious commercial challenges.
In our recent blog, cloud accounting director, Rosie Cooper, outlines the main obstacles UK SMEs are facing – and how to mitigate their impact.
Key challenges facing SMEs in 2025
Higher input and export costs – UK exporters are experiencing tighter margins as tariffs increase the landed cost of goods in the US. This may force businesses to raise prices, risking competitiveness in foreign markets.
Cash flow pressures – The additional costs – both direct (tariffs) and indirect (administrative burden, delays) – put pressure on short- and long-term cash flow. SMEs without robust forecasting tools may find it difficult to adapt.
Ongoing supply chain disruption – Lingering global instability, including geopolitical tensions and shipping delays on Asia-Pacific routes, continues to affect SMEs reliant on cross-border manufacturing and materials.
Lost export opportunities – SMEs in industries such as food production, manufacturing, and textiles are seeing reduced access to key US and Chinese markets due to retaliatory tariffs and increased regulatory requirements.
Stricter customs and compliance checks – US customs authorities have increased scrutiny of UK shipments. Even minor paperwork mistakes could now lead to delays, penalties or rejected cargo.
What can UK SMEs do?
Renegotiate where possible – Open discussions with buyers about adjusting pricing to share the tariff burden may be required. Reworking contracts to include flexible prices clauses can also help manage volatility.
Consider additional funding – Consider alternative funding options to cover the costs incurred from delays and unexpected challenges. At PM+M, our partnership with Capitalise gives you access to a wide range of tailored funding solutions. Read more here.
Diversify export markets – With US trade becoming more complex, SMEs may consider targeting alternative markets such as Canada, Australia, or members of the CPTPP, where UK trade agreements may offer tariff-free access.
Strengthen business planning – Now, more than ever, proactive business planning is crucial. SMEs should revisit their strategic roadmaps, including tariff scenarios, supply chain resilience and export dependencies.
Improve cash flow forecasting – With tariffs adding additional costs to your future forecast, consider utilising cash flow planning to incorporate tariff costs, delayed payments and shifting demand. At PM+M, we can help with this using tools like Futrli or Fathom, giving you greater clarity and control over your financial outlook. For more information on cash flow management read here.
Stay compliant and up to date– Review and update all export documentation, and ensure your team understands current US and international customs requirements, especially where new regulatory changes apply.
While new tariffs undoubtedly pose challenges, 2025 also presents opportunities for SMEs willing to adapt. Whether it’s expanding into less regulated markets or improving digital operations to streamline compliance, strategic flexibility is key.
If you’re an SME struggling with the current trade environment, or just want some advice on how to navigate the recent changes to tariffs, our cloud accounting team can help you stay compliant, resilient, and ready for growth. Get in touch by emailing enquiries@pmm.co.uk to find out how we can support your success in 2025 and beyond.
