Overview

• A survey of over 500 SMEs found that 30% expect tariff-related costs of £10,000–£20,000 this year and 2% foresee losses exceeding £1 million.
• More than half of SMEs exporting to the US predict net decreases in shipment volumes, and 47% of all exporters anticipate reduced future sales.
• The pound’s rise to $1.358, over 8% stronger since January, has squeezed exporter margins even as it lowers costs for importers.
• Many businesses are reconfiguring supply chains and seeking new partners, with China emerging as the most popular alternative market.
• Some EU firms are considering establishing UK plants to bypass trade barriers and maintain access to the US market under the new policy landscape.